Charles Schwab Corp. reported record earnings per share in the third quarter as clients opened new brokerage accounts and traded more amid volatile markets.
Adjusted earnings of 84 cents a share topped the 80-cent average estimate of analysts in a Bloomberg survey. Customers opened 1.2 million retail brokerage accounts, almost double the number added in the same period a year earlier, the company said Friday in a statement.
Average daily trades almost quadrupled to 5.5 million from a year earlier but fell from the previous quarter’s 6 million level.
Schwab is the largest U.S. brokerage, with $7.6 trillion in client assets, after buying TD Ameritrade last year. The Covid-19 pandemic brought a boom in retail trading that lifted major brokerages as well as upstart rivals such as Robinhood Markets Inc., which had roughly 22.5 million funded accounts at the end of June. About 32.7 million people have brokerage accounts with Schwab.
Schwab’s trading revenue of $964 million was more than five times its level a year earlier. That helped boost overall net revenue 87%, to $4.6 billion.
Shares of the brokerage, which have climbed 53% this year, rose 3.6% to a record $80.90 at 10:15 a.m. in New York.
Also, Orion has added BlackRock, Fidelity, and Vanguard to its custom portfolios suite, and RedBlack has set up a new headquarters after crossing a trillion-dollar milestone.
Also, New York-based Legacy Edge Advisors names its first-ever CEO, while Novare Capital Management hires a Vanguard veteran with a multigenerational planning focus.
Asset managers are racing to bring private market products to retirement plans, but cost and liquidity concerns linger.
Treasury's latest tax-exemption crackdown on private schools lands in the wake of a separate push to restrict refundable credits for some immigrant filers.
Workforce trust measures predicted which companies came out ahead during COVID-19. The same dynamic may now be playing out across the AI transition — and the data suggests the spread could be just as wide.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
