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October 15, 2014 at 07:12 AM
Charles Schwab (SCHW) said Wednesday its third-quarter net income was $321 million, up 11% from last year but down slightly from the second quarter of 2014. Its total revenue improved 13% to $1.55 billion vs. $1.37 billion a year ago.
Net income available for shareholders was $312 million, or $0.24 per share, compared with $282 million, or $0.22 per share, in Q3’13.
This met analysts’ estimates for per-share earnings, according to Thomas Reuters, and topped revenue expectations of $1.49 billion.
The company says its financial results for the third quarter include two non-recurring items: a net insurance recovery of about $45 million and a charge related to future changes in the company’s geographic footprint of $68 million. Combined, the two items reduced pretax income by roughly $23 million, or $0.01 per share.
“Our full-service investing model continues to resonate with clients and drive business growth. During the third quarter of 2014, we gathered $34.7 billion in net new assets – a 6% annualized growth rate – and we ended the quarter with $2.40 trillion in total client assets, up 12% from last September,” said CEO Walt Bettinger in a press release.
“Including relationships under the guidance of independent advisors, $1.19 trillion in client assets at Schwab are currently receiving some form of ongoing advisory service, an increase of 15% versus year-ago levels,” Bettinger said.
