Charles Schwab reports Q3 EPS 70c, consensus 64c
Reports Q3 revenue $2.71B, consensus $2.64B. CEO Walt Begginger states: "As we remain faithful to our "Through Clients' Eyes" strategy, investors continue to reward us with strong business growth. Our contemporary full-service model helps us remain a trusted partner as clients navigate an environment that has only grown more cloudy in recent months. The equity markets have shown noteworthy durability - the S&P 500 remained up nearly 20% for the year as of quarter-end. Concerns persist, however, regarding global trade and a generally softening economic outlook. The Federal Reserve has moved forward with expected mid-cycle easing, cutting short-term interest rates 25 bps in both July and September, and long-term rates have also shown significant declines. Against this backdrop, clients brought us $56.6B in core net new assets, a third quarter record, which brings our year-to-date total to $145.5B , representing a 6% annualized organic growth rate. In addition, we attracted 363,000 new brokerage accounts in the quarter, helping raise active brokerage accounts to 12.1M, up 6% year-over-year. Client demand for help and guidance continued to grow, with assets receiving ongoing advisory services reaching nearly $2.0 trillion at quarter end, up 7%. Assets in digital advisory solutions grew even faster, rising 20% to $43.0B at the end of September. Overall, our client assets totaled a record $3.77T at quarter end, up 6%."