Earnings Rise at Schwab

Net new client assets totaled $11.2 billion in the second quarter.
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Charles Schwab

(SCH)

said second-quarter earnings and revenue grew as the discount broker and financial services provider benefited from new client assets and rising interest rates.

For the quarter ended June 30, the company earned $186 million, or 14 cents a share, compared with $113 million, or 8 cents a share, for the second quarter a year ago. Revenue was $1.09 billion for the quarter, up from $1.03 billion in the prior-year period.

Total client assets reached $1.106 trillion at the end of June, up 11% from a year ago. Net new client assets totaled $11.2 billion in the second quarter.

"The second quarter of 2005 marked the ninth consecutive quarterly increase in our non-trading revenues," the company said in a press release. "These revenues reached a record $900 million, up 16% from the same period in 2004 -- an increase that more than offset the drop in our trading revenues."

Analysts surveyed by Thomson First Call expected Schwab to earn 13 cents a share and post revenue of $1.07 billion for the second quarter.

Shares of Schwab were up 57 cents, or 4%, to $13.31.