MEDIA: Mayura Hooper Charles Schwab Phone: 415-667-1525
INVESTORS/ANALYSTS: Rich Fowler Charles Schwab Phone: 415-667-1841
SCHWAB REPORTS RECORD QUARTERLY NET INCOME OF $783 MILLION, UP 39%
Revenues Grow 15% Year-Over-Year to $2.4 Billion, Marking Eleven Consecutive Record Quarters
Core Net New Assets Rise 69% to a New All-Time High of $65.6 Billion
SAN FRANCISCO, April 16, 2018 – The Charles Schwab Corporation announced today that its net income for the first quarter of 2018 was a record $783 million, up 31% from $597 million for the prior quarter, and up 39% from $564 million for the first quarter of 2017.
Three Months Ended March 31,
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Note: All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding.
CEO Walt Bettinger said, “Our contemporary full-service model continues to build stronger client relationships and drive record growth, even during times of market uncertainty. In the first quarter, investors experienced sharp market swings after nine consecutive quarters of positive S&P 500® returns. Amidst the volatility, client interactions surged as we offered the insight and assistance they expect – call volumes and web logins from both our retail and independent advisor clients were up nearly 20% and 50% from their respective quarterly averages. Engagement remained strong during the quarter, with trading activity rising nearly 40% year-over-year to a new all-time high and clients continuing to be net buyers of securities. New accounts totaled 443,000 company-wide – the highest quarterly level in 18 years. In addition, households new to our Retail business rose 42% versus the first quarter of 2017. Excluding planned mutual fund clearing outflows of $84.4 billion, our clients entrusted us with record quarterly core net new assets of $65.6 billion, implying an annualized growth rate of 7.8% – a level not seen since 2008. This strength in asset gathering spanned our largest businesses, as Advisor Services and Retail both set new records, with inflows up 27% and 64%, respectively, from last year. Our outstanding organic growth helped to partially offset market declines, and we ended the quarter serving $3.31 trillion in client assets, up 13% from last year, across 11.0 million active brokerage accounts, 1.2 million banking accounts, and 1.6 million retirement plan participants.”
Mr. Bettinger continued, “Operating ‘through clients’ eyes’ remains central to serving our current clients and fueling growth. Every day we ask ourselves how we can better support our clients, improve the value we offer, and make it simpler and easier to do business with us. We were recently honored as the ‘Highest in Investor Satisfaction with Full Service Brokerage Firms’ by J.D. Power* for the third consecutive year, demonstrating the importance of our broad capabilities, which include an extensive array of advice solutions. Total assets receiving ongoing advice continued
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The following information was filed by Schwab Charles Corp (SCHW) on Monday, April 16, 2018 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: SCHW CIK: 316709 Form Type:10-Q Quarterly Report Accession Number: 0000316709-18-000024 Submitted to the SEC: Wed May 09 2018 5:12:21 PM EST Accepted by the SEC: Wed May 09 2018 Period: Saturday, March 31, 2018 Industry: Security Brokers Dealers And Flotation Companies