SCHW - Charles Schwab Posts Mixed Q3 Earnings: Net Interest Revenue Dips Amid Higher Interest Rate Environment | Benzinga
Charles Schwab Corp (NYSE: SCHW) reported a Q3 net revenue decline of 16% Y/Y to $4.61 billion, missing the consensus of $4.63 billion.
Revenues were impacted by a temporary utilization of higher-cost funding, a decline in interest-earning assets, and weaker trading volumes.
Net interest revenue declined 24% Y/Y to $2.24 billion, impacted by client allocation decisions within a higher interest rate environment.
Also, trading revenue declined 17% Y/Y to $768 million, and Bank deposit account fees decreased 50% Y/Y to $205 million in Q3.
Meanwhile, Asset management and administration fees increased 17% Y/Y to $1.22 billion, led by ongoing interest in proprietary fund products, growth in no-transaction-fee platform balances, and strong flows into ...