Categories: Economy

Charles Schwab’s fourth-quarter revenue soars on larger asset administration charges


(Reuters) – Brokerage agency Charles Schwab (NYSE:SCHW) stated on Tuesday that its revenue rose 44% within the fourth quarter pushed by a leap in asset administration charges, sending its shares up greater than 6% in premarket buying and selling.

WHY IT’S IMPORTANT

The outcomes are the primary beneath new CEO Rick Wurster’s watch and will set the tone for the corporate after Walt Bettinger retired as chief government on the finish of 2024, after 16 years on the helm.

Schwab’s diversified enterprise mannequin spans brokerage providers, asset administration, banking and different monetary options, and its outcomes typically replicate tendencies within the funding panorama.

CONTEXT

Expectations of decrease company taxes and deregulation beneath newly elected U.S. President Donald Trump sparked a market rally that boosted Schwab’s belongings beneath administration in addition to corresponding charges.

BY THE NUMBERS

The Westlake, Texas-based firm’s whole shopper belongings rose 19% to $10.10 trillion within the three months ended Dec. 31.

Schwab’s asset administration and administration charges, earned from managing mutual funds and exchange-traded funds, elevated 22% to $1.51 billion.

Its whole internet revenues rose 20% to $5.33 billion within the reported quarter.

The corporate posted an adjusted revenue of $1.01 per share for the fourth quarter, in contrast with $0.68 per share a yr earlier.

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