Charles Schwab Corp. announced April 17 that its net income for the quarter ended March 31, 2007, came in at $273 million, a pretty good jump from the $243 million the brokerage firm pulled in during the same period in 2006.
In announcing the figures, Chairman and CEO Charles Schwab said that during the first quarter, Schwab continued its success in building stronger client relationships despite the fact that investors faced heightened economic uncertainty and securities market volatility. New and existing clients brought in $33.5 billion in net new assets to Schwab during the quarter, he said, up 27% from last year's first quarter and Schwab's best net inflow since the third quarter of 2000. An additional $17.8 billion in net new assets associated with the acquisition of The 401(k) Company, which closed on March 31, helped total client assets rise by 16% year over year to a record $1.306 trillion as of March 31. Clients also opened 193,000 new brokerage accounts during the first quarter.
Schwab Institutional, meanwhile, expanded offerings to new independent advisors through a relationship with Cambridge Investment Research to house both fee- and commission-based assets at Schwab. Schwab also introduced start-up financing, as well as expanded partnerships with a national insurance broker and a major commercial real estate firm. The brokerage firm also held aseries of Growth Forums, workshops that provide 120 advisory firms with in-depth, customized guidance on marketing and business development practices.