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TheStreet Open House

Schwab Reports Fourth Quarter Net Income Up 29% Year-Over-Year

The Charles Schwab Corporation announced today that its net income for the fourth quarter of 2012 was $211 million, down 15% from $247 million for the third quarter of 2012, and up 29% from $163 million for the fourth quarter of 2011. Net income for the twelve months ended December 31, 2012 was $928 million, up 7% year-over-year. Schwab’s 2012 results include an after-tax gain of approximately $44 million relating to the resolution of a vendor dispute and a non-recurring state tax benefit of approximately $20 million, which were recorded in the second and third quarters, respectively.

 

Three Months Ended

   

Twelve Months Ended

   

 

--December 31,--

%

--December 31,--

%

Financial Highlights

 

2012

 

2011

 

Change

 

2012

 

2011

 

Change

 

Net revenues (in millions)

$

1,215

$

1,113

9

%

$

4,883

$

4,691

4

%

Net income (in millions)

$

211

$

163

29

%

$

928

$

864

7

%

Diluted earnings per common share

$

.15

$

.13

15

%

$

.69

$

.70

(1

%)

Pre-tax profit margin

28.3

%

22.6

%

29.7

%

29.7

%

Return on average common stockholders’ equity (annualized)

9

%

8

%

11

%

12

%

 
 

CEO and President Walt Bettinger commented, “Our ‘through clients’ eyes’ strategy helped build investor trust in Schwab and supported another year of outstanding growth for our company in 2012. Our individual client loyalty scores reached new highs during the year, and our client metrics ended strongly, with December core net new assets totaling a record $22.6 billion, 28% higher than the previous record set in March 2008. Core net new assets totaled $112.4 billion for 2012, up 37% over the prior year. We ended the year with a record $1.95 trillion in total client assets, up 16% over December 2011. We added 900,000 new brokerage accounts to our client base during 2012, and active brokerage accounts reached a record 8.8 million at year-end, up 3% year-over-year. In addition, we served 865,000 banking accounts and 1.6 million corporate retirement plan participants as of month-end December 2012, up 11% and 5%, respectively.”

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