Financial services company Charles Schwab (SCHW) has reported second-quarter financial results that surpassed Wall Street forecasts.
The Texas-based brokerage and wealth management firm announced earnings per share (EPS) of $1.62 U.S., which beat the consensus expectation of analysts that called for $1.56 U.S.
Revenue in the April through June period came in at a record $7.1 billion U.S., topping the $6.9 billion U.S. forecast on Wall Street. Sales were up 20% from a year earlier.
Management said they benefited from robust customer activity during the quarter, with net new assets coming in at $120 billion U.S., up 62% from $74 billion U.S. a year ago.
Customers of Charles Schwab opened 1.4 million new brokerage accounts during the year’s second quarter, bringing total client accounts to 48 million.
Customers traded more too in recent months, with daily average trading volume reaching a record 11.9 million in Q2, up 57% year-over-year.
Charles Schwab has been diversifying its offerings to customers, providing them with more than a trading platform.
New offerings include loans and wealth management services. The company saw growth in these areas, with bank loan balances up 33% to $67 billion U.S. from a year ago.
Charles Schwab serves both individual investors and registered investment advisors, providing the latter group with technology and custodial services.
The company’s assets under management (AUM) increased 22% year-over-year in the second quarter to reach $13.08 trillion U.S.
SCHW stock has gained 7% in the last 12 months to trade at $102.54 U.S. per share.
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