Charles Schwab Profit Climbs on New Accounts

By Ezequiel Minaya 

Charles Schwab Corp. said more clients opening new accounts during the fourth quarter helped boost its profit 25%.

The San Francisco-based discount brokerage said about 32,000 clients held financial planning conversations during the period, up 10% from a year earlier. New retail brokerage accounts tallied 182,000 during the quarter, up 21%.

In all, Schwab posted a profit of $522 million, up from $416 million a year prior. On a per-share basis, earnings grew to 36 cents from 28 cents.

Revenue rose 17% to $1.97 billion. Analysts surveyed by Thomson Reuters had anticipated earnings of 36 cents a share on revenue of $1.99 billion.

Net interest revenue, which gauges the difference between interest earned on assets and interest paid out on deposits, climbed 31% to $907 million. Asset management and administration fees rose 19% to $801 million. Trading revenue fell 3% to $202 million.

Shares were roughly flat premarket.

Write to Ezequiel Minaya at [e-mail]

(END) Dow Jones Newswires

January 18, 2017 09:40 ET (14:40 GMT)

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