Schwab Reports Record Quarterly Net Income of $564 Million, up 37%

Charles Schwab press release ------- The Charles Schwab Corporation announced today that its net income for the first quarter of 2017 was a record $564 million, up 8% from $522 million for the prior quarter, and up 37% from $412 million for the first quarter of 2016. The company's financial results for the first three months of 2017 reflect a new accounting standard for equity compensation. CEO Walt Bettinger said, “We continue to build a bigger, stronger, and more capable Schwab through a steadfast focus on our “Through Clients’ Eyes” strategy. During the first quarter, the equity markets began in positive territory and remained solidly positive throughout. Investors were engaged, and Schwab was there to provide guidance and support along the way. Clients opened more than 100,000 new brokerage accounts per month during the quarter, putting total new accounts at 362,000, the highest quarterly total in 17 years excluding acquisitions. Our Retail business gathered record levels of core net new assets over the past three months, posting an 83% increase over the year-earlier period. At the same time, Advisor Services attracted near-record inflows from the independent advisor clients who custody with us and achieved a 57% increase. Net new assets across the company reached $39 billion for the first quarter, up 22%, and total client assets rose to $2.92 trillion at month-end March, up 14% year-over-year. Our growing client base continues to make greater use of our contemporary wealth management capabilities and we recently ranked highest in J.D. Power’s U.S. Full-Service Investor Satisfaction Survey for the second consecutive year. During the first quarter, our financial consultants held planning conversations with 38,000 clients, up 12%. At the end of March, $1.48 trillion in assets were enrolled in some form of ongoing advisory service, an increase of $200 billion from a year ago. We ended March serving 10.3 million active brokerage accounts, 1.1 million banking accounts, and 1.5 million retirement plan participants, up 5%, 7%, and 1%, respectively. Our growing business is a testament to the power of our strategy as we strive to earn our clients’ trust every day.” For more on Schwab net income for first quarter of 2017 click on the picture below to read the release.