Charles Schwab Trading Revenues Fall 21%
- Scott Peters
- U.S.A. New York City
-
Core Net New Assets Total $120.5 Billion. Total Client Assets Finish at $7.86 Trillion, up 11% Year-over-Year.
The Charles Schwab Corporation said first quarter 2022 revenues declined 1% to $4.67 billion, net income fell 6% to $1.4 billion, and diluted earnings per share decreased 8% to 67 cents from 73 cents a year ago. Net interest income, about 50% of total revenues, increased 14% and brokerage trading revenues, about 30% of total, fell 21%. Bank deposit account fees dropped 16%.
CEO Walt Bettinger said, “Our business momentum remained quite strong throughout the first quarter. We helped clients face a complex set of crosscurrents, which included an ongoing economic recovery supported by continued progress against the COVID pandemic, rising inflation, geopolitical turmoil driven by the Russian invasion of Ukraine, the Fed initiating its first tightening cycle since late 2015, and more volatile equity markets that remained below year-end 2021 levels for the vast majority of the period.
Ongoing client engagement was reflected in trading activity that averaged more than 6.5 million a day – a level exceeded only by the ‘re-opening’ surge of last year’s first quarter.
At the same time, Schwab’s contemporary full-service model and ‘no trade-offs’ approach to value, service, transparency, and trust helped
attract 1.2 million new brokerage accounts during the first quarter, along with $121 billion in core net new assets, which represents a 6% annualized organic growth rate.
We ended March with 33.6 million active brokerage accounts and $7.86 trillion in total client assets, up 5% and 11%, respectively, over year-earlier levels.”
Annual Returns
| Company | Ticker | 2025 | 2024 | 2023 |
|---|---|---|---|---|
| The Charles Schwab Corporation | SCHW | -0% | 7% | -14% |