The Charles Schwab Corporation has reported first quarter 2024 net revenues of $4.7 billion, reflecting a quarter-over-quarter increase of 6%.
Net income for the quarter totaled $1.4 billion, or $.68 diluted earnings per common share.
Excluding $140 million of pre-tax transaction-related and restructuring costs, adjusted net income and diluted common earnings per share equaled $1.5 billion and $.74, respectively.
According to Co-Chairman and CEO Walt Bettinger, against an improved macroeconomic backdrop, clients entrusted the firm with $96 billion in core net new assets – including $45 billion in March alone.
“At the same time, solid investor engagement contributed to over 1 million new brokerage account openings during the quarter,” he said.
Strong equity markets and organic asset gathering helped total client assets reach a record $9.12 trillion.
Active brokerage accounts increased 3% year-over-year to end March at 35.3 million.
Engagement rebounded with trading volume and margin balances up 15% and 9%, respectively, from 4Q23.
Bettinger said that momentum across the firm’s array of wealth solutions continued through the first quarter.
Led by record flows into their premier fee-based solution, Schwab Wealth Advisory, net inflows increased 60% versus the prior year period, he said.
While total net revenues declined by 7% versus the prior year, rising equity markets and increased client engagement helped drive 6% sequential top-line growth
According to CFO Peter Crawford, organic earnings and a smaller balance sheet bolstered the company’s capital position. “Our preliminary consolidated Tier 1 Leverage ratio equaled 8.8% and Adjusted Tier 1 Leverage ratio exceeded 5%,” he said.
“Our balanced approach to expense management helped enable pre-tax profit margins to expand sequentially to 37.9% – 40.9% adjusted – while continuing to make investments to support long-term growth,” he addded.
The Charles Schwab Corporation is a provider of financial services, with 35.3 million active brokerage accounts, 5.3 million workplace plan participant accounts, 1.9 million banking accounts, and $9.12 trillion in client assets.
