Charles Schwab News

Schwab Reports Strong First Quarter Results

Earnings per share of 82 cents beat estimates by 4 cents

Revenue rose 12% to $4.6 billion

The Charles Schwab Corporation (NYSE: SCHW) today reported net income of $1.2 billion, or 82 cents per share, for the first quarter of 2023. This compares to net income of $1.1 billion, or 78 cents per share, in the first quarter of 2022.

Revenue rose 12% to $4.6 billion from $4.1 billion in the year-ago period. Net interest revenue increased 23% to $2.9 billion, while trading revenue rose 10% to $664 million.

Schwab's total client assets increased 1% to $6.7 trillion from $6.6 trillion at the end of 2022. The company added 1.2 million new brokerage accounts during the quarter.

"We are pleased with our strong start to the year," said Walt Bettinger, Schwab's CEO. "Our diversified business model and focus on providing value to our clients continue to drive our success."

Schwab's results were ahead of analysts' expectations. The company's earnings per share beat estimates by 4 cents, and its revenue exceeded expectations by $100 million.

Schwab's stock price rose 2% in premarket trading following the release of its earnings report.

Conclusion

Schwab's strong first-quarter results show that the company is well-positioned to continue to grow in the future. The company's diversified business model and focus on providing value to its clients are key drivers of its success. Schwab is also benefiting from the rising interest rate environment, which is boosting its net interest revenue. As a result, Schwab is a solid investment for long-term investors.