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Third-Quarter Income Fell By 91%, Schwab Says

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The Charles Schwab Corporation, San Francisco, says net income for the quarter fell 91% from year-ago levels, to $13 million on just under $1 billion in operating revenue in the three months ended Sept. 30, 2001 from $142 million on $1.3 billion in the third quarter of 2000.

Operating income for the quarter, which excludes a gain on the sale of a corporate trust business, acquisition-related charges and other costs, was $81 million . In comparison, operating income for the third quarter of 2000 was $165 million.

Schwab says weak investor activity due to falling stock prices, magnified by the Sept. 11 catastrophes, caused the 91% drop in net income and 51% fall in operating income.

Chairman and co-CEO Charles R. Schwab says clients opened 184,000 new accounts with Schwab, which ended the third quarter with 7.8 million active accounts.

“In addition, new and existing clients brought a total of $18 billion in net new assets to the firm,” Schwab says. “Total client assets at month-end September 2001 were $768 billion, 20% below the year ago level, reflecting the general decline in market valuations.”