Schwab Reports Mixed Results: Q2 Earnings
Its second-quarter results, which include those of TD Ameritrade, were hurt by a $200 million regulatory charge.
Charles Schwab’s latest profits — which include those of TD Ameritrade — rose nearly 90% year over year to $1.27 billion in the second quarter from $671 million. Earnings per share grew almost 25% to $0.59 from $0.48.
Adjusted earnings, excluding one-time items, of $0.70 missed analysts’ expectations by a penny, according to FactSet.
Revenue was roughly $4.53 billion, though, ahead of an anticipated $4.46 billion, and up 85% from $2.45 billion a year ago.
Schwab says that expenses in the second quarter were close to $300 million and totaled about $570 million for the first half of 2021. As it disclosed early this month, the firm took a $200 million regulatory charge related to the Securities and Exchange Commission probe of its robo-advisor platform, representing $0.10 per share, in the second quarter.
Assets under management in its RIA channel, Advisor Services, were nearly $1.9 trillion as of June 30, up 82% from last year. Total assets, including those of DIY investors, were up 84% to almost $7.6 trillion.
(Photo: Christopher Dilts/Bloomberg)