Investment bank Donaldson, Lufkin & Jenrette Inc is considering a spin-off of its online trading unit, a move which would add another publicly-traded company to the list of players in the fast-growing market. DLJ said it is set to make a decision on whether to publicly offer shares in the DLJdirect business to investors some time during the current quarter. In its quarterly earnings report, the bank said DLJdirect earned record revenues of $117.9m in 1998, up 61% from the prior year. Client assets in DLJdirect accounts nearly doubled to $8.9bn and the average number of trades per day in 1998 increased 87% to 11,400. In terms of daily trades, DLJ’s service ranked seventh among online securities trading houses as of the third quarter, according to the latest figures available. DLJ says the current year is off to an even stronger start with average trades per day in the first week exceeding 21,000. The online service was a highlight of DLJ’s quarterly report, as the bank reported overall earnings for the quarter down 32% year-over-year. Word of the possible spin- off sent DLJ shares up $6.4375, or 14%, to $52.25 Wednesday, before most of the gains ($4.9375) were erased Thursday following the earnings report.
