Why Charles Schwab (SCHW) Shares Are Trading Higher Today - Charles Schwab (NYSE:SCHW)

Charles Schwab Corp SCHW reported Q1 net revenues of $5.11 billion, up 10%, missing the consensus of $5.15 billion.
Net interest revenue increased 27% Y/Y to $2.77 billion, with net interest margin expanding 81 basis points Y/Y.
Although the bank witnessed a dip in the average daily pace of bank sweep movements from January to March 2023, it benefitted from higher asset yields from the Federal Reserve's tightening program in the quarter.
Also read: Charles Schwab's Q1 Earnings Preview: Analysts Slashed EPS Ahead of The Release, All Eyes On Deposit Outflows Post Banking Crisis
Asset management and administration fees increased slightly to $1.12 billion from $1.07 billion, while trading revenue declined to $892 million in Q1 from $963 million a year ago.
Bank deposit account revenue declined to $151 million from $294 million a year ago, partly due to a one-time brokerage fee of $97 million related to agreement cancellation with a third-party bank ahead of the initial Ameritrade client transition group.
Bank deposits declined 30% Y/Y to $325.7 billion as clients realigned their allocations across other transaction and investment cash solutions.
Total expenses rose 6% Y/Y to $3.00 billion, which includes acquisition and integration-related costs of $98 million and $135 million in amortization of acquired intangibles.
Net flows into Managed Investing solutions grew 26% Y/Y, reaching $8.9 billion in Q1.
In Q1, the bank opened over 1 million new brokerage accounts, comprising $132 billion worth core net new assets ($53 billion in March 2023).
Adjusted net income stood at $1.78 billion, higher from $1.59 billion in the prior year.
Adjusted EPS stood at $0.93, up 21% Y/Y, exceeding the consensus of $0.90.
Buyback: Charles Schwab has paused its buyback program in light of the recent events within the U.S. banking sector and the resulting regulatory uncertainty.
Total assets decreased 21% Y/Y to $535.6 billion. Tier 1 leverage ratio stood at 7.1% in Q1.,
In January, SCHW raised its quarterly dividend by 14% Q/Q to 0.25.
Price Action: SCHW shares are trading higher by 2.19% at $51.88 on the last check Monday.

Market News and Data brought to you by Benzinga APIs

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Why Charles Schwab Shares Are Trading Higher Today

Comments