What's Going On With Charles Schwab Shares Today?

Zinger Key Points
  • Charles Schwab reports Q1 2024 adjusted net income down 17% Y/Y to $1.469 billion.
  • Record asset management and administration fees at $1.3 billion; total client assets reach $9.12 trillion.

Charles Schwab Corporation SCHW reported a first-quarter 2024 adjusted net income decline of 17% Y/Y to $1.469 billion.

Adjusted EPS fell 20% Y/Y to $0.74, which came in line with the consensus.

Revenue fell 7% to $4.74 billion, marginally beating the consensus of $4.71 billion. Asset management and administration fees rose 21% Y/Y to $1.3 billion.

The bank had $269.5 billion in deposits at the end of the first quarter of 2024, down 17% Y/Y.

Net interest revenue declined 19% Y/Y to $2.23 billion in the first quarter. Clients’ daily average trades fell to 5.958 million, up 1% Y/Y.

In the first quarter of FY24, Schwab attracted $96 billion in core net new assets, including $45 billion in March alone, pushing the total client assets to $9.12 trillion at quarter-end. 

The company added 1 million new brokerage accounts to increase the total client base to 35.3 million (+3% Y/Y).

Walt Bettinger, Co-Chairman and CEO, said, “Momentum across our array of wealth solutions continued through the first quarter. Led by record flows into our premier fee-based solution, Schwab Wealth Advisory™, net inflows increased 60% versus the prior year period.”

Peter Crawford, CFO, stated, “Our balanced approach to expense management helped enable pre-tax profit margins to expand sequentially to 37.9% – 40.9% adjusted (1) – while continuing to make investments to support long-term growth.”

ReadSchwab Explains How Faster Securities Settlement Will Affect Investors

“Organic earnings and a smaller balance sheet bolstered our capital position, as our preliminary consolidated Tier 1 Leverage ratio equaled 8.8% and Adjusted Tier 1 Leverage (1) ratio exceeded 5%.”

Investors can gain exposure to the stock via IShares U.S. Broker-Dealers & Securities Exchanges ETF IAI and Tidal ETF Trust God Bless America ETF YALL.

Also ReadWhat’s Going On With Charles Schwab Shares After Launching Forex Trading?

Price Action: SCHW shares are down 1.80% at $68.77 premarket on the last check Monday.

Photo via Shutterstock

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