US financial and brokerage services firm Charles Schwab Corp. has increased its net income by 40% and revenue by 18% in the first quarter, with its adjusted earnings and revenue beating market expectations.
According to the company’s press release, its net income was $1.91 billion, or $0.99 per share, in the January-March quarter, compared to $1.36 billion, or $0.68 per share, in the same period a year earlier.
Earnings excluding one-time factors came in at $1.04 per share, beating the average forecast of $1.01 per share by analysts polled by FactSet.
Charles Schwab posted revenue of $5.6 billion, compared with $4.74 billion in the first quarter of 2024. Experts were expecting an average of $5.53 billion.
The company’s net interest income rose to $2.706 billion last quarter from $2.233 billion a year earlier. Commissions received for administration and asset management totalled $1.530bn compared to $1.348bn in the first quarter of last year, trading income was $908m compared to $817m.
As of 31 March, Charles Schwab had $9.93 trillion in client assets (up 9% year-over-year) and 37 million active brokerage accounts (up 8%).
During the quarter, the company repurchased $1.5bn worth of its own shares and raised its quarterly dividend to $0.27 per share.
Charles Schwab’s stock price is up 5.4% during earlier trading on Thursday. Since the beginning of the year, the company’s market value has risen 2.3% (to $141.14bn), while the Standard & Poor’s 500 stock index has lost 10.3%.