Charles Schwab Corp. announced Friday records in annual revenue and net income for 2014, and record net income for 2014’s Q4. For the year, Schwab (SCHW) had a 23% increase in net income on an 11% rise in net revenues.
In the fourth quarter, the company posted net income of $350 million, up 10% from 2013’s fourth quarter, on an 8% rise in net revenues to $1.55 billion — topping analysts’ estimates. For the year, the San Francisco-based company had net income of $1.32 billion on revenue of $6.05 billion.
As for its industry-leading RIA custody business, Schwab Advisor Services (SAS) ended 2014 with a 10% annual rise in client assets to $1.112 trillion; assets in Schwab’s retail business, Schwab Investor Services, also rose 10% year-over-year to $1.315 trillion.
In a statement, CEO Walt Bettinger said the company received $124.8 billion in net new client assets during the year, “marking the third consecutive year of core net new assets in excess of $100 billion.” The advisor-services unit was responsible for $65.7 billion of the ’14 net new flows.
In addition, Bettinger noted that Schwab had $1.23 trillion in client assets that “were enrolled in some form of ongoing advisory service” at the end of 2014, a 12% increase from year-end 2013.
Bettinger said the company ended the year with “record client account levels – active brokerage accounts were up 3% to 9.4 million and banking accounts rose 8% to 985,000.”