said third-quarter earnings should rise 10% to 15% from the 14 cents a share it earned in the second quarter amid brisk client volume.
The brokerage, which also announced that it is dropping account service fees on individual accounts, is expected to earn 15 cents a share in the third quarter, according to Thomson First Call.
Schwab said average daily client trades were 215,300 in August, up 61% from a year ago and 1% from July 2005. Total client assets rose 17% from a year ago to $1.15 billion at the end of August.
"Our client fundamentals remain very encouraging -- August marked our third consecutive month of net new assets in excess of $6 billion, daily average trades for the first two months of the traditionally slower summer quarter were up 9% from the second quarter, and client trading activity thus far in September has been slightly higher than August levels," Schwab said.
A 5% to 10% sequential increase in third quarter earnings would make the quarter its second-most-profitable ever, the company said.
Schwab expects the elimination of service fees plus a new advertising campaign to shave 2 cents from its per-share earnings in the fourth quarter.
The stock rose 15 cents, or 1%, to $14.65 early Thursday.