MEDIA: Mayura Hooper Charles Schwab Phone: 415-667-1525
INVESTORS/ANALYSTS: Rich Fowler Charles Schwab Phone: 415-667-1841
SCHWAB FOURTH QUARTER NET INCOME OF $935 MILLION CAPS RECORD YEAR
2018 Revenues Rise 18% to $10.1 Billion, Net Income Grows 49% to $3.5 Billion, Both Records
Core Net New Assets Reach a Record $227.8 Billion, up 15%
SAN FRANCISCO, January 16, 2019 – The Charles Schwab Corporation announced today that its net income for the fourth quarter of 2018 was $935 million, up 57% from $597 million for the fourth quarter of 2017. Net income for the twelve months ended December 31, 2018 was $3.5 billion, up 49% year-over-year.
Three Months Ended December 31,
Twelve Months Ended December 31,
Net revenues (in millions)
Net income (in millions)
Diluted earnings per common share
Pre-tax profit margin
Return on average common
stockholders’ equity (annualized)
Note: All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding.
CEO Walt Bettinger said, “Our ability to build stronger client relationships and set financial records through a volatile environment reaffirmed the power of Schwab’s ‘Virtuous Cycle’ in 2018. While the year began with strong market momentum, February saw a surge of volatility, including the largest-ever one-day increase in the Cboe Volatility Index®. After a relatively stable summer, the S&P 500® reached an all-time high in September, before dropping 580 points to ultimately end the year 6% lower than month-end December 2017. Throughout these ups and downs, disciplined execution of our ‘Through Clients’ Eyes’ strategy helped us succeed with clients – households new to Retail rose 20% compared to 2017, with 53% of those new clients under the age of 40. Another measure of our success is the willingness of new and existing clients to trust us with their hard-earned assets. Both of our primary businesses posted record inflows in 2018, with Retail and Advisor Services net new assets rising 37% and 7%, respectively. Altogether, investors rewarded Schwab with a record $227.8 billion in core net new assets, up 15% from the previous record in 2017 and more than twice the 2008 total – clear evidence of our asset gathering capabilities. These impressive flows were driven, in part, by our ability to win in a competitive marketplace as we continued attracting more than two dollars of inflow for every dollar out in 2018. Our strong net new assets largely offset lower market valuations and we ended the year at $3.25 trillion in total client assets.”
Mr. Bettinger continued, “We remain well-positioned to continue driving robust business growth; with less than 10% market share, we still have ample opportunity ahead of us even as our client base reaches new highs. Last year, clients opened a record 1.6 million new brokerage accounts, up 9% from the previous year. Record client activity and help from the broader environment contributed to our sixth straight year of record revenues, which totaled
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The following information was filed by Schwab Charles Corp (SCHW) on Wednesday, January 16, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Form Type: 10-K Annual Report Accession Number: 0000316709-19-000008 Submitted to the SEC: Fri Feb 22 2019 11:27:02 AM EST Accepted by the SEC: Fri Feb 22 2019 Period: Monday, December 31, 2018 Industry: Security Brokers Dealers And Flotation Companies