Boston, MA 10/16/2013 (wallstreetpr) – Charles Schwab Corp (NYSE:SCHW) declared better than expected results on October 15, 2013 and managed to beat analysts’ expectations. The highlights of the results are:
- 3Q13 revenues were $1.4 billion, up by 15% over the same period last year. The net income stood at $290 million, gaining 17% over the same period last year. Pretax profit margin stood at 33.8% compared with 30.2% a year ago a rise of more than 33%.
- Core net new asset growth was 97% higher.
- Revenues from asset management and administration fees continued to grow contributing $583 million a rise of 11% over the last year. Revenues from trading were $224 million, a rise of 10%. Fund fee waivers related to the money market rose to $180 million, a rise of 32%.
- Net interest revenues were up by 15.3% at $506 million.
- The client base increased by 3%. There are now 9.01 million brokerage accounts and 930,000 banking accounts. The daily average trades also increased by 8%.
- The company now manages $2.15 trillion client assets, a growth of 13%.
- In keeping with the company’s strategy, participants in the corporate retirement plan decreased by 16% to 1.30 million.
- Total expenses excluding interest rose to 909 million, an increase of 9% over the same period last year.
- Earnings per share were at $0.22 against analysts’ prediction of $0.20 per share. The earnings were $0.19 per share for the same period last year.
The revenues were the highest in the last thirteen years despite the tough macroeconomic scenario. Such good results buoyed the company to forecast a pre-tax profit margin of 30% and earnings per share in the mid $0.70 per share range for the complete year. Analysts are expecting the company to achieve earnings of $0.74 per share for the complete year.
Investors were quick to react to the good news and the company’s shares touched a new high of $23.79 before closing at $23.03 a rise of 4.63%.
