Charles Schwab increased third-quarter net income by 23 per cent to 2.906 billion dollars as revenue grew faster than expenses. Core net new client assets reached 190.4 billion dollars and trading activity expanded. Adjusted earnings per share exceeded the Zacks consensus, although revenue came in slightly below that estimate, leaving the quarter’s profit and revenue comparisons pointing in different directions.
Charles Schwab, the US brokerage and financial services company, increased third-quarter net income by 23 per cent to 2.906 billion dollars. Net revenue grew 17 per cent to 7.171 billion dollars. Adjusted earnings per share reached 1.69 dollars, exceeding the Zacks consensus of 1.66 dollars, while revenue was slightly below its 7.19 billion dollar estimate. Reported diluted earnings per share were 1.62 dollars.[1], [2]
Core net new client assets reached 190.4 billion dollars, up 38 per cent from a year earlier. Clients opened 1.2 million brokerage accounts, bringing the total to 48.6 million. Total client assets rose 15 per cent to 13.33 trillion dollars. Average daily trading activity climbed 44 per cent to 10.7 million trades. The client-asset measure covers investments held for customers across products.[1]
Net interest revenue rose from 3.050 billion dollars to 3.476 billion dollars. Asset management and administration fees increased 14 per cent to 1.913 billion dollars, and trading revenue rose 16 per cent to 1.158 billion dollars. Reported and adjusted expenses both increased 9 per cent. With revenue rising faster, the pretax profit margin widened from 49.2 per cent to 52.7 per cent. Bank lending grew 35 per cent to 72.3 billion dollars.[1]
