Charles Schwab Corp's (NYSE:SCHW) earnings and revenues hit their mark for the first quarter as the investment platform provider welcomed growing numbers of new client assets as the macroeconomic backdrop improved.
Net revenues in the quarter totalled $4.7 billion, down 7% on the same period a year earlier but 6% higher than the $4.46 billion in the fourth quarter of last year and in line with Wall Street forecasts.
However, net new client assets grew $96 billion and strong equity markets helped total client assets reach a record $9.12 trillion.
Net income of $1.4 billion was down 15% compared with the first quarter last year on a GAAP basis or $0.68 diluted earnings per share.
Adjusted EPS of $0.74 was bang in line with Street expectations.
“Against an improved macroeconomic backdrop, clients entrusted us with $96 billion in core net new assets – including $45 billion in March alone,” said co-chairman and CEO Walt Bettinger.
He said “solid investor engagement” contributed to over one million new brokerage accounts being openings during the quarter, while “momentum” across its various investing and retirement solutions continued through the quarter.
Asset management and administration fees increased by 21% over the prior year to a record $1.3 billion.
Schwab stock rose 0.26% in pre-market trading to $70.21.