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Schwab's Profits Rise 29%

The discount broker posts a solid quarter.
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Discount brokerage

Charles Schwab

(SCHW) - Get Charles Schwab Corporation Report

reported a 29% gain in third-quarter profits, fueled by a combination of higher non-trading revenue and expense controls.

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In the quarter, the San Francisco-based firm earned $266 million, or 21 cents a share, up from $207 million, or 16 cents a share. Net revenue rose 13% to $1.29 billion.The Thomson Financial consensus estimate had Schwab earning 20 cents a share on revenue of $1.3 billion.

The broker said that non-trading revenue totaled $1.22 billion, or 87% of the firm's total net revenue. Expenses rose 5% in the quarter.

"Our reduced reliance on more volatile trading revenue, combined with ongoing expense discipline, is enabling us to deliver more consistent and predictable margins and earnings,'' the firm said in a press release.