Boston, MA 10/15/2014 (wallstreetpr) – Charles Schwab Corp (NYSE:SCHW) CEO, Walt Bettinger, said that it was able to gather $34.7 billion of net new assets in the third quarter indicating a 6% annualized growth pace. As a result, it closed the third quarter with a 12% growth to $2.40 trillion in total client assets.
CEO Comments
Charles Schwab Corp (NYSE:SCHW)’s CEO said that it could attract 229,000 fresh brokerage accounts as it witnessed signs of a summer effect during its client interactions, its statement indicated. It lifted its total brokerage accounts to 9.3 million at the end of the third quarter suggesting a 3% uptick over the last year quarter. Aside from this, it finished the quarter with 1.4 million retirement plan participants and 970,000 banking accounts representing a growth of 4% and 8% respectively.
On top of these, Bettinger said that it could witness higher utilization of the available advice and help on the backdrop of increased volatility in the market during the September quarter. He said that it held 27,000 more planning conversations. Its assets enrolled reached $177 billion from its retail and other advisory solutions. Its client assets reached $1.19 trillion including relationships from the guidance of independent advisors.
3Q Results
Charles Schwab reported net income of $321 million for the third quarter, up 10.7% from $290 million in the previous year quarter. Its earnings advanced 9.1% to 24 cents a share from 22 cents a share in the prior year quarter. It said that net charges for two items reduced its pre-tax income by about $23 million or one cent a share in the third quarter.
Charles Schwab Corp (NYSE:SCHW)’s total revenue advanced 13% to $1.55 billion from $1.37 billion in the year-ago quarter. Its net interest revenue grew 13.2% to $573 million from $506 million whereas trading revenue dipped 6.7% to $209 million from $224 million in the same quarter last year. Its revenue from others more than doubled to $120 million from $57 million in the previous year quarter.
Its total expenses, excluding interest, increased 13.6% to $1.03 billion from $0.91 billion in the year-ago quarter.
