Revenues were impacted by a temporary utilization of higher-cost funding, a decline in interest-earning assets, and weaker trading volumes. 

Net interest revenue declined 24% Y/Y to $2.24 billion, impacted by client allocation decisions within a higher interest rate environment.

Also, trading revenue declined 17% Y/Y to $768 million, and Bank deposit account fees decreased 50% Y/Y to $205 million in Q3.

Meanwhile, Asset management and administration fees increased 17% Y/Y to $1.22 billion, led by ongoing interest in proprietary fund products, growth in no-transaction-fee platform balances, and strong flows into advised solutions.

Bank deposits declined 28% Y/Y to $284.4 billion in the quarter.

Total expenses rose 14% Y/Y to $3.22 billion, which includes acquisition and integration-related costs of $106 million, $135 million in amortization of acquired intangibles, and $279 million in costs related to previously announced restructuring. 

In Q3, the bank opened over 894K new brokerage accounts (flat Y/Y), comprising $46 billion worth of core net new assets, ending Q3 with total client assets worth $7.82 trillion across ~35 million accounts. 

Total assets decreased 18% Y/Y to $475.2 billion. Tier 1 leverage ratio stood at 8.2% in Q3.

Price Action: SCHW shares are trading higher by 0.55% at $51.61 premarket on the last check Monday.