Charles Schwab Reports In-line Second Quarter Results

Story Stocks^® Archive

Last Update: 18-Jul-11 10:47 ET

Charles Schwab (SCHW $14.75 -0.27) reported second quarter earnings of $0.20 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.20.

Revenues rose 10.2% year/year to $1.19 billion versus the $1.19 billion consensus.

The company said, "Our valued clients are showing a resiliency in this environment that bodes well for the future. Although the economic recovery is progressing slower than hoped, clients remain solidly engaged with their investments, as cash holdings at Schwab have declined to pre-crisis levels. While trading activity is relatively soft, our diverse suite of investment products and services is propelling our ongoing growth, as clients increasingly opt to enroll in our advisory solutions. Client assets enrolled in Schwab retail advisory offerings increased to $113 billion at month-end June, up 20% year-over-year. Adding in assets under the guidance of an independent fee-based advisor brings total advised assets at quarter-end to $811 billion, up 17%. Overall, we ended June serving 8.1 million active brokerage accounts, 745,000 banking accounts and 1.44 million retirement plan participants. Despite a challenging environment, net new assets totaled $15.4 billion for the second quarter, up 10% from the second quarter of 2010 after adjusting for a large clearing outflow last year, and total client assets reached $1.66 trln at quarter-end, up 22% year/year."