Charles Schwab 2Q earnings hit the mark

Charles Schwab Corp., the largest independent brokerage by client assets, reported second-quarter profit that matched the average analyst estimate as revenue from interest earned offset a decline in trading. Net income rose 16 percent to $238 million, or 20 cents a share, from $205 million, or 17 cents, a year earlier, the San Francisco-based company said in a statement today. Analysts estimated profit of 20 cents a share, according to the average in a Bloomberg survey. Net revenue climbed 10 percent to $1.19 billion, beating the average analyst projection. The brokerage, which has been weathering a near-zero interest rate environment since December 2008, exceeded analyst estimates last quarter, doubling profit on interest revenue and higher fees for managing assets. Net new assets for Charles Schwab last quarter totaled $15.4 billion, compared with $14.6 billion in the same period a year ago, according to today’s statement. The shares fell 1.3 percent to $15.01 on July 15, the last trading session, extending the year-to-date loss to 12 percent. That compares with a 4.7 percent gain in the Standard & Poor’s 500 Index and a 16 percent decline for the NYSE Arca Securities Broker/Dealer Index.