Charles Schwab (NYSE:SCHW) Corp shares edged 1.1% lower ahead of the market open after third-quarter revenue fell short of market expectations.
The financial services and discount brokerage giant reported net income dropped to $1.02 billion, or 56 cents a share, from $1.88 billion, or 99 cents a share, the year prior.
Excluding non-recurring items, adjusted earnings per share of 77 cents beat the FactSet consensus of 74 cents.
But revenue declined 16.3% to $4.61 billion, below the FactSet consensus of $4.62 billion.
Net interest revenue fell 23.5% to $2.24 billion to beat the FactSet consensus of $2.22 billion, while asset management and administration fee revenue rose 16.9% to $1.22 billion, in line with expectations, and trading revenue was down 17.4% to $768 million to miss expectations of $804 million.
New brokerage accounts were flat from a year ago but down 7% from the sequential second quarter.
Co-chairman and CEO Walt Bettinger said the firm has identified a number of opportunities for increased efficiency which once fully implemented would deliver at least $1 billion of incremental annual expense savings.