Charles Schwab Corp. (SCHW) reported second-quarter earnings Friday that showed profit falling below estimates, while revenue beat, as it opened 1.7 million new brokerage accounts, exceeding 1 million for a third straight quarter. The discount brokerage posted net income of $1.265 billion, or 59 cents a share, up from $671 million, or 48 cents a share, in the year-earlier period. Adjusted per-share earnings came to 70 cents, just below the 71 cents FactSet consensus. Revenue rose 85% to $4.527 billion from $2.450 billion, ahead of the $4.459 billion FactSet consensus. The numbers included TD Ameritrade, which Schwab acquired last October, along with acquisition and integration-related costs, including a non-deductible charge of $200 million, or 10 cents a share, related to a previously disclosed regulatory matter. "During the second quarter, signs of normalcy took root across the U.S. as vaccinations accelerated, social activities largely resumed, and people started returning to corporate offices," Chief Executive Walt Bettinger said in a statement. Core net new assets reached $257 billion by end-June, more than double the first half of 2020, he said. Shares were down 1.3% premarket, but have gained 33% in the year to date, while the S&P 500 has gained 16%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
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