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Stockbroker Charles Schwab reported better than expected second quarter earnings before the open Tuesday. $SCHW gained from the incredible volatility in the stock market bull market with NASDAQ at record highs. Competitor Interactive Brokers $IBKR report after the close


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The increased volatilty and higher Fed Funds rate means higher commission and interest income.

Earnings

Scwab profit was $813 million, or $0.60 per share much higher than $530 million, or $0.39 per share, in last year's second quarter. Beating analysts expectations for $0.58 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Highlights

net income for the second quarter of 2018 was a record $866 million, up 11% from $783 million for the prior quarter, and up 51% from $575 million for the second quarter of 2017. Net income for the six months ended June 30, 2018 was $1.6 billion, up 45% from the year-earlier period.

Charles Schwab Corporation NYSE: $SCHW

Market Reaction: Pre-market 52.14 +1.08 (2.12%)

“While markets felt fairly volatile, investors remained engaged, and we saw record trading for the first half of 2018, up 29% from last year,” CEO Bettinger said

“Clients also sought our help and guidance; digital advisory solutions sustained an asset gathering pace of around $1 billion a month, reaching $33.3 billion at quarter-end. Total assets receiving ongoing advisory services at Schwab equaled a record $1.77 trillion at month-end June, a 15% year-over-year increase, compared with overall client asset growth of 12%. We ended the quarter serving $3.40 trillion in total client assets across 11.2 million active brokerage accounts, 1.3 million banking accounts, and 1.6 million retirement plan participants.” CEO Bettinger added 

The brokers followed the earnings from the money center banks JPMorgan $JPM, Wells Fargo $WFC, PNC Financial $PNC, Citigroup $C, Bank of Amercia $BAC and Goldman Sachs $GS which mainly announced big jumps in revenue.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with more than 345 offices and 11.2 million active brokerage accounts, 1.6 million corporate retirement plan participants, 1.3 million banking accounts, and $3.40 trillion in client assets as of June 30, 2018.

Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, money management, custody, and financial advisory services to individual investors and independent investment advisors Read more: http://www.digitaljournal.com/pr/3857992#ixzz5LW6VpnOZ

Source: Schwab

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