Charles Schwab reported record $7.2 billion in revenue, up 17% from a year earlier

Charles Schwab Corporation, a major player in the U.S. financial services industry, delivered strong third-quarter earnings on Thursday, exceeding analyst forecasts while slightly falling short of revenue expectations. The company's adjusted earnings per share stood at $1.69, surpassing the estimated $1.66.

Despite the revenue miss, Schwab's performance was robust, with net income totaling $2.9 billion, or $1.62 per share on a GAAP basis. The company reported record core net new assets of $190.4 billion, marking a 38% year-over-year increase and an impressive annualized growth rate of 5.8%. Additionally, there was a notable surge in client activity, with 1.2 million new brokerage accounts opened and total client accounts reaching 48.6 million.

Total client assets climbed 15% year-over-year to $13.33 trillion. Schwab's commitment to deeper client engagement is evident, as it has expanded and strengthened their revenue model, contributing to the 17% year-over-year increase in revenue, reaching a record $7.2 billion. The company's net interest margin expanded to 3.04%, and bank loan balances reached $72.3 billion at the end of September, up 35% year-over-year. Margin loan balances increased 14% quarter-over-quarter to $187.9 billion.

Schwab's trading volume averaged 10.7 million daily, a 44% year-over-year increase, driving trading revenue of $1.2 billion, up 16% from the previous year. Asset management and administration fees grew 14% year-over-year to $1.9 billion. The company's capital ratios remained strong, with preliminary consolidated Tier 1 Leverage at 8.9%.