Charles Schwab Corp (NYSE:SCHW) is set to report a year-over-year drop in first quarter revenues driven by higher funding costs and lower market volatility.
The financial services firm is expected to report a 7.8% decrease in revenue to $4.72 billion when it posts its Q1 earnings on Monday, April 15 before the market opens.
Management expects growth between 5% and 6% over the previous quarter’s revenue of $4.46 billion driven by rising equity markets and stronger client trading activity.
Net interest revenue is pegged at $2.23 billion, a 19.5% decline, while trading revenue is projected to drop 7.3% to $826.5 million.
Asset management and administrative fees are seen jumping 17.1% to $1.31 billion.
Total client assets are expected to grow from $7.58 trillion to $8.54 trillion.
Earnings per share are estimated to be $0.74, Wall Street analysts believe, marking a more than 20% decline from the year-ago quarter.
Shares of Charles Schwab traded hands at $70 on Friday afternoon. The stock has gained about 35% in the last 12 months.