Charles Schwab beat earnings expectations and reported net income of $964 million, or $0.69 per share, up 23% from last year. Revenue rose 14% year over year to $2.72 billion.
“New brokerage accounts totaled 386,000 during the quarter, and client account openings have now exceeded 100,000 for 28 consecutive months,” according to CEO Walt Bettinger. “In addition, clients entrusted us with total core net new assets of $51.7 billion for the quarter, representing a 6% annualized growth rate.”
The San Francisco-based firm now has nearly $3.6 trillion of client assets. Assets held in the Advisor Services business are roughly $1.7 trillion.
As for net new asset flows, the Advisor Services unit attracted $22.5 billion in the first quarter, down 15% from $26.6 billion in the fourth quarter of 2018 and 30% off flows of $32.0 billion a year earlier.
Intelligent Portfolios Premium
Schwab released earnings less than three weeks after announcing a new subscription model for some of its services.
Schwab Intelligent Advisory will be renamed Schwab Intelligent Portfolios Premium and will cost $30 a month rather than 0.28% of assets each year; it includes “unlimited” support from a certified financial planner, a $25,000 investment minimum and a $300 initial planning fee.