2023-07-18 09:04:00 ET
Charles Schwab ( NYSE: SCHW ) stock gained 4.8% in Tuesday premarket trading after the firm's Q2 earnings and revenue beat Wall Street consensus estimates as it added 1M new brokerage accounts in the quarter. The company finished the quarter with $8.02T in total client assets, up from $7.58T at the end of Q1.
"During the second quarter, we gathered $52B in core net new assets – bringing year-to-date asset gathering to over $180M and keeping us squarely within our long-term organic growth range of 5%–7%," said Co-Chairman and CEO Walt Bettinger.
Q2 adjusted EPS of $0.75, beating the $0.71 consensus estimate, fell from $0.93 in Q1 2023 and from $0.97 in Q2 2022.
Net revenue of $4.66B, vs. $4.61B consensus, fell from $5.12B in the prior quarter and from $5.09B a year ago.
Net interest revenue of $2.29B, vs. the $2.24B Visible Alpha consensus, vs. $2.77B in the previous quarter and $2.54B in the year-ago quarter.
Asset management and administration fees were $1.17B vs. $1.12B in Q1 2023 and $1.05B in Q2 2022.
Trading revenue of $803M vs. $892M in Q1 and $885M in Q2 2022.
Bank deposit account balances of $102.7B vs. $106.5B in Q1 2023 and $155.6B. Meanwhile, money market funds assets of $392.9B increased from $357.8B in the prior quarter and $159.2 in the year-ago period.
Total expenses, excluding interest, dropped to $2.97B from $3.01B in the prior quarter and rose from $2.82B in the year-ago period.
More on Charles Schwab:
- Previous quarters income statements
- Charles Schwab: A Look at the Good and the Bad That's Right Around the Corner
- Charles Schwab raised to Outperform at JMP as cash sorting headwinds abate
- Charles Schwab: The Fed Cleared the Path for a Higher Valuation
For further details see:
Charles Schwab Q2 earnings top consensus as client assets exceed $8T