Charles Schwab Profit Plummets

NEW YORK ( TheStreet) -- Charles Schwab ( SCHW) reported net income of $119 million, or 10 cents a share, in the fourth quarter of 2010, a drop of 27 percent from $164 million the broker reported during the same periond in 2009.

The fourth quarter earnings results were in line with analysts expectations that ranged between 8 cents to 11 cents a share. Several analysts lowered their expectations from 14 cents a share after Schwab reported that it would have to pay a fine to regulators.

As analysts predicted, Schwab took a large hit this quarter from the $119 million the broker paid to regulators due to issues with its YieldPlus Fund. The broker reported that without the fine it would have reported a fourth quarter net income of $218 million.

Schwab also reported the company's net income for 2010 was $454 million, down 42 percent from 2009. Prior the YieldPlus fine the net income totaled $775 million.

--Written by Maria Woehr in New York.

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