The Charles Schwab Corporation (NYSE:SCHW), one of the biggest banks and brokerage groups in the US, reported standout results on Monday, mainly as a result of strong growth in both brokerage and investment advisor accounts.
Revenue over the first nine months came in at $7.463 billion, up 17% from the year-ago level of $6.376 billion. Net income during the nine-months climbed 46% to $2.572 billion, from $1.757 billion over the same period last year. Earnings per share for nine months was up 48% to $1.79, versus $1.21 in the year-ago period.
Third quarter revenue was at $2.579 billion, some 19% higher compared with $2.165 billion a year ago, and in line with expectations. Net income during the quarter jumped 49% to $923 million, up 49% higher than the $618 million in the same period last year. EPS was at $0.65, some 55% higher from $0.42, but also in line with expectations.
"Clients opened 369,000 brokerage accounts in the third quarter, bringing our year-to-date new accounts to 1.2 million, the highest nine-month total in our history," said chief executive Walt Bettinger.
"The company is growing through both our retail channel and the registered investment advisors who custody on our platform, he said.
READ: Charles Schwab 1Q profit rises 42% on higher asset-management fees, trading revenue
Shares of Charles Schwab were off 0.3% to $48.85 in early Monday trade.
Charles Schwab is a leading provider of financial services, with more than 350 offices and 11.4 million active brokerage accounts, 1.6 million corporate retirement plan participants, 1.3 million banking accounts, and $3.56 trillion in client assets as of September 30, 2018.
The Charles Schwab Corporation is a bank and brokerage firm. It was founded in 1971 and is one of the largest banks as well as one of the largest brokerage firms in the United States. The company provides services for individuals and institutions that are investing online.
It is based in San Francisco, California.
Reporting by Rene Pastor, contactable on rene.pastor@proactiveinvestors.com