Schwab profits rise 12%

Charles Schwab Corp. posted a 12% increase in net income for the first quarter, as new customers increased assets in client accounts. The San Francisco-based discount brokerage firm brought in net income of $273 million, or 22 cents per share during the first quarter, compared to $243 million, or 19 cents per share during the year-ago period. The company said that revenue for the quarter rose to $1.15 billion, a 9% increase from the $1.05 billion recorded in the first quarter of 2006. Analysts surveyed by Thomson First Call and Reuters Estimates expected the 22 cents per share earnings forecast. "With more predictable revenues and sustained expense discipline, we remained focused on delivering consistently strong financial performance," said Schwab chief financial officer Chris Dodds, according to a statement. Clients opened 193,000 new brokerage accounts during the quarter. Total client assets increased 16% to a record $1.31 trillion, as individual investors brought in $33.5 billion of new assets. The flow of funds increased 27% compared to the year-ago period and was the best net inflow since the third quarter of 2000. Assets increased by $17.8 billion with its purchase of The 401(k) Co., a retirement plan administrator, on March 31, from Columbus, Ohio-based Nationwide Financial Services Inc.