Charles Schwab Corp. reported that fewer clients opened new brokerage accounts with the investing giant than analysts expected, sending shares of the company down in early trading.
New brokerage accounts in the quarter rose to 985,000, the company said Tuesday in a statement. While that’s up from 960,000 in the same period a year earlier, it’s less than the 1.04 million analysts in a Bloomberg survey were expecting.
Still, Schwab reported $1.33 billion in net income for the three-month period, beating a $1.23 billion average of analyst estimates. Earnings per share for the quarter were 66 cents, which also topped expectations.
“Schwab’s ‘no trade-offs’ value proposition continued to resonate with investors,” Co-Chairman and Chief Executive Officer Walt Bettinger said in the statement.
The retail brokerage space has gotten more crowded as consumers flocked to the markets during the pandemic and have stuck with their new trading habits. Schwab has maintained its more traditional approach to retail investing as compared with crypto-friendly competitors like Robinhood Markets Inc., but will roll out an alternative investments platform for qualified, self-directed individual investors this year.
Shares of the company dropped 3.3% in early trading in New York. The stock had risen 9.1% this year through the close of trading on Monday.
The Westlake, Texas-based firm announced in May that Mike Verdeschi, a three-decade veteran of Citigroup Inc., will take over as chief financial officer from Peter Crawford. Crawford helped Schwab through last year’s financial turbulence, which hit the banking division.
Schwab, founded by Charles “Chuck” Schwab more than 50 years ago, oversees more than $9.4 trillion in total client assets.
Elsewhere in Utah, Raymond James also welcomed another experienced advisor from D.A. Davidson.
A federal appeals court says UBS can’t force arbitration in a trustee lawsuit over alleged fiduciary breaches involving millions in charitable assets.
NorthRock Partners' second deal of 2025 expands its Bay Area presence with a planning practice for tech professionals, entrepreneurs, and business owners.
Rather than big projects and ambitious revamps, a few small but consequential tweaks could make all the difference while still leaving time for well-deserved days off.
Hadley, whose time at Goldman included working with newly appointed CEO Larry Restieri, will lead the firm's efforts at advisor engagement, growth initiatives, and practice management support.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
