Charles Schwab Tops Profit and Revenue Estimates, and Shares Hit Record High
:max_bytes(150000):strip_icc()/GettyImages-1614631423-94d77938c58a4c368cfcb41d12cd4ac3.jpg?w=780&resize=780,470&ssl=1 "Charles Schwab Tops Profit and Revenue Estimates, and Shares Hit Record High")
Key Takeaways
- Charles Schwab beat forecasts for earnings and revenue, and shares traded at a record high.
- The discount brokerage and investment firm posted big gains in trading revenue and net interest income, and total client assets reached an all-time high of $10.76 trillion.
- Charles Schwab added more than 1 million new brokerage accounts in the second quarter, and core net new assets jumped 31%.
Charles Schwab (SCHW) shares traded at an all-time high when the discount broker and investment firm reported better-than-expected results on higher trading fees and net interest income.
The company posted second-quarter adjusted earnings per share of $1.14, with revenue rising 24.8% to $5.85 billion. Both were above estimates.
Trading revenue jumped 22.5% to $952 million, and net interest income soared 30.8% to $2.82 billion. Bank deposit fees skyrocketed 61.4% to $247 million. Total client assets grew 14%, hitting a record of $10.76 trillion.
CEO Rick Wurster said retail investors and registered investment advisors drove the performance, which included more than 1 million new brokerage accounts added, and $80.3 billion in core net new assets, a 31% increase year-over-year.
Shares of Charles Schwab are up about 30% this year.
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