2023-07-19 07:45:00 ET
Brokerage Charles Schwab (NYSE: SCHW) is facilitating fewer trades than it was a year ago. It's also earning less interest income. But, net customer gains mean it's at least generating more management fee revenue now than it was at this point in 2022.
That's the broad takeaway from Schwab's second-quarter earnings report morning. In line with results from some other banks and brokers, the firm is reaping the benefits of a stabilizing, mostly bullish stock market and higher interest rates even as its own interest expenses soar.
Perhaps more than anything, however, investors should know that Charles Schwab is shrugging off the first quarter's liquidity debacle that upended Silicon Valley Bank and other midsize lenders.
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Charles Schwab Tops Q2 Estimates Thanks to Management Fees, Despite Interest Income