Client assets hit the heights at Schwab

Client assets hit the heights at Schwab
With investors moving out of cash, assets reach record levels
APR 14, 2011
The Charles Schwab Corp. today reported increases in net revenue and profits for the first quarter, driven by a return of the individual investor to the market. Net revenues were up 23% for the quarter, to $1.2 billion, compared to a year ago. Net income hit $243 million, up from $6 million from the first quarter of 2010 when the company took a write-off from the YieldPlus fund settlement. Schwab clients "have now reduced the percentage of their assets … in cash to pre-crisis levels," said chairman Charles Schwab in a statement. Client assets continued to hit record levels. Total assets at the firm as of March 31 were $1.65 billion. Assets at Schwab's adviser custody unit, called Advisor Services, hit a record $688.6 billion. Its RIA firms raked in $14.2 billion in net new assets during the quarter. Schwab's discount brokerage business held $714.8 billion in assets, and brought in $5.7 billion in net new funds. Total assets at the firm first recovered to pre-crisis levels a year ago. Schwab officials said the company was well positioned for rising interest rates. Low rates have hurt securities firms, since interest earnings are a key revenue component. "We believe [Schwab] has the most leverage to rising rates of any name we cover," said Ticonderoga Securities analyst Douglas Sipkin in a report today.

Latest News

Job numbers, inflation leaving room for Fed to hold rates
Job numbers, inflation leaving room for Fed to hold rates

Recent data support a measured pace by the Federal Reserve for the year ahead.

Farther adds $120M firm with science-backed approach to wealth management
Farther adds $120M firm with science-backed approach to wealth management

The latest addition to the tech-driven firm combines wellness and finances.

Cutting back on fun: a third of Americans plan to reduce spending on vices
Cutting back on fun: a third of Americans plan to reduce spending on vices

Your clients are likely to be spending on vices, depending on their generation.

Gold continues to shine, but will jobs data change that?
Gold continues to shine, but will jobs data change that?

Traders are awaiting the latest snapshot of US economic strength.

Veritas could be about to snap up one of Wall Street’s oldest names
Veritas could be about to snap up one of Wall Street’s oldest names

Private equity firm reportedly in talks to make an acquisition.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.