Skip to main content

Schwab Swings to Profit

Third-quarter revenue rises 14%.
  • Author:
  • Publish date:

Charles Schwab


said its third-quarter revenue rose 14% and the discount broker swung to a profit, saying it benefited from picking up assets and from rising interest rates.

Revenue for the quarter ended Sept. 30 rose to $1.14 billion from $1 billion a year ago. Schwab earned $207 million, or 16 cents a share, compared with a loss of $41 million, or 3 cents a share, in the same quarter a year ago.

Last year's quarter includes restructuring charges of $70 million and losses from discontinued operations of $87 million.

"September marked our fourth consecutive month of net new assets in excess of $6 billion and our net new assets of $23.4 billion for the third quarter of 2005 were 80% higher than last year's third quarter," the San Francisco-based company said in a press release Monday. "Total client assets set a new record of $1.166 trillion at month-end September, up 16% from September 2004."

Nontrading revenue accounted for 84% of Schwab's total third-quarter top line. Analysts surveyed by Thomson First Call were looking for a profit of 15 cents and revenue of $1.11 billion in the third quarter.

Shares of Schwab were gaining more than 6% to $13.98 in early trading.