Investment services firm Charles Schwab Corp. (SCHW), on Monday, reported an increase in profit for the first quarter that also topped Wall Street estimates. Total revenue was up 10% year-over-year and exceeded $5 billion for the fourth consecutive quarter. The company said the combination of top-line growth, coupled with disciplined expense management, yielded a pre-tax margin of 41.2%, or 45.8% adjusted, for the quarter.
Charles Schwab noted that Bank deposits shrank by 11% versus the prior year-end as clients realigned their allocations across its selection of transaction and investment cash solutions. During the first quarter, clients opened over 1 million new brokerage accounts and entrusted Charles Schwab with $132 billion of core net new assets - including over $53 billion in March alone. While Investor Services gathered approximately $60 billion during the period, the Advisor Services segment posted a record first quarter with over $71 billion in net flows. The company said these near-record inflows across both primary businesses represented an annualized organic growth rate north of 7% and helped push total client assets to $7.58 trillion at quarter-end.
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