Charles Schwab said Wednesday that its net income for the first quarter of 2020 was $795 million, down 18% from a year ago. Revenues weakened 4% from Q1’19 to hit $2.6 billion.
Earnings per share were $0.58, down 16% from last year and included $0.04 per share for M&A and COVID-19 costs.
Net interest revenue — a big share of Schwab’s total — fell 6% from a year ago to $1.57 billion; asset management and fee revenue grew 10% to $827 million; and trading revenue declined 13% to $188 million.
The Advisory Services unit had assets of about $1.65 trillion, down 3% from last year, while Investor Services had $1.85 trillion, for a year-over-year decline of 2%.
In Q1’20, the brokerage firm spent $37 million on “pending USAA, TD Ameritrade and Wasmer Schroeder transactions.” USAA investors are set to move to the Schwab platform in late May; meanwhile, there’s no word yet from the Justice Department on approval of the TD Ameritrade purchase.
Schwab also spent about $27 million on responding to the COVID-19 pandemic, including $1,000 “spot bonuses” for employees and other compensation and business continuity expenses.