Schwab disappointed analysts with its fourth-quarter earnings Tuesday but reported a 24% rise in advisory assets from a year earlier.
Adjusted earnings per share for the brokerage were $0.86 in the fourth quarter of 2021, up 6% from the prior year. Equity analysts had expected $0.88.
Net income, though, improved 18% year over year and totaled $2.14 billion.
Revenue missed estimates at $4.7 billion, a jump of 13% from the prior year. Total asset management and administrative fees in the quarter were $1.1 billion versus $987 billion in Q4’20.
While acknowledging that the firm’s results missed expectations, Schwab CEO Walt Bettinger told CNBC that the firm overall “had an outstanding quarter from a financial standpoint” and added that rising interest rates would likely help its revenues in 2022. Net interest income was $2.14 billion in Q4’21 versus $1.81 billion in Q4’20.