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Charles Schwab Eases on Mixed Quarter, Lower Daily-Trade Volume

Charles Schwab posted 6 million daily trades for the second quarter, down 28% from Q1.
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Shares of Charles Schwab  (SCHW) - Get Report eased on Friday after the brokerage and financial-services company reported that second-quarter profit fell but revenue topped estimates. 

The Westlake, Texas, company reported second-quarter adjusted earnings of 70 cents a share as revenue increased 85% from a year earlier to $4.53 billion. 

Analysts surveyed by FactSet were expecting earnings of 71 cents a share on revenue of $4.46 billion. 

Charles Schwab shares at last check fell 3% to $68.45.

"During the second quarter, signs of normalcy took root across the U.S. as vaccinations accelerated, social activities largely resumed, and people started returning to corporate offices," Chief Executive Walt Bettinger said in a statement. 

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The company opened 1.7 million new brokerage accounts. The firm reported daily trading volume of 6 million, 28% fewer than number of trades it facilitated in the first quarter. 

The number of daily trades was 4% higher than it was in the fourth quarter, which was the first period during which Charles Schwab added the TD Ameritrade business to its earnings report. 

"Our full-service model embraces an omnichannel approach -- aiming to blend the best elements of human interaction and technology so that clients can access us where, when, and how they choose," Bettinger said. 

The company reported a nondeductible charge of $200 million, or 10 cents a share, for a regulatory matter.

Schwab in early July reported a Securities and Exchange Commission inquiry into its earlier disclosures regarding its Intelligent Portfolios digital advisory solution.

Bloomberg News explained that the service is a so-called robo-adviser, which selects low-cost exchange-traded funds for investors based on their risk tolerance and automatically rebalances their portfolios.