Schwab 4Q profit beat estimates, record inflows
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The news: Charles Schwab posted a 76% quarterly profit jump, driven by higher interest income, record inflows and strong customer trading activity.
The numbers: Fourth-quarter revenue grew 20% to USD5.33 billion ($8.53 billion), beating analysts’ estimates of USD5.19 billion.
Net income rose to USD1.84 billion, from USD1.05 billion over the same period last year. Adjusted earnings per share reached USD1.01, exceeding FactSet predictions of USD0.91.
Total client assets hit USD10.1 trillion, with record inflows of USD55 billion for the year. Deposits fell 11% to USD259.1 billion.
The context: The recovery comes after a challenging year in 2023 marked by the regional banking crisis and customers moving funds to higher-yield options.
Newly-appointed CEO Rick Wurster and CFO Mike Verdeschi oversaw improved earnings following a transition year in 2024. The firm also completed integrating TD Ameritrade, adding 17 million accounts, and plans to expand branches.
The sources: Schwab release , Bloomberg
