Brokerage Charles Schwab (SCHW) has reported third-quarter financial results that surpassed Wall Street’s forecasts.
The company, which is primarily focused on investing, stock trading and wealth management, reported earnings per share EPS) of $1.69 U.S., which beat estimates of $1.65 U.S.
Revenue in the July through September period totaled $7.20 billion U.S., exceeding analysts’ consensus forecast of $7.18 billion U.S. Sales were up 17% from a year earlier.
Importantly, Texas-based Charles Schwab posted record net new assets of $190.4 billion U.S., up 38% year-over-year. Net new assets is a closely watched growth metric for Charles Schwab.
Clients opened 1.2 million new brokerage accounts during the third quarter, bringing total client accounts to 48.6 million.
Bank loan balances reached $72.3 billion U.S. at the end of September, up 35% from a year ago, while margin loan balances increased 14% quarter-over-quarter to $187.9 billion U.S.
Daily average trading volumes on Charles Schwab’s platform reached 10.7 million, up 44% year-over-year and driving trading revenue of $1.2 billion U.S., up 16% from the previous year.
Throughout this year, Charles Schwab has benefitted from a rising stock market, robust trading activity, and customers adding more funds to their investment accounts.
In August, the company reported $64.8 billion U.S. in net new assets, a record for that month. The company has more than $13 trillion U.S. of assets under management.
Despite the strong growth and financial performance, Charles Schwab’s stock has been hurt by fears of disruptions from artificial intelligence (A.I.).
As such, SCHW stock has declined 5% this year to trade at $96.80 U.S. per share.
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