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The Charles Schwab Corporation (SCHW+1.81%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in net income to $1.4 billion from $1.125 billion in the same quarter the previous year. The increase is attributed to higher asset management and administration fees and trading revenue.
Total net revenues for the quarter were $4.847 billion, up 5% from $4.606 billion in the same quarter of the previous year. This increase was driven by a rise in asset management and administration fees and trading revenue.
Net interest revenue was $2.222 billion, down slightly from $2.237 billion in the previous year, due to lower average interest-earning assets and higher rates paid on funding sources.
Asset management and administration fees rose to $1.476 billion, up 21% from $1.224 billion in the same quarter of the previous year, primarily due to higher balances in money market funds and fee-based advice solutions.
Trading revenue increased to $797 million, a 4% rise from $768 million in the previous year, primarily due to higher volumes and changes in the mix of client trading activity.
Bank deposit account fees decreased to $152 million, down 26% from $205 million in the previous year, primarily due to lower average balances.
Total expenses excluding interest were $3.005 billion, down 7% from $3.223 billion in the previous year, reflecting lower restructuring costs and acquisition and integration-related costs.
The company completed the conversion of the final client transition group from Ameritrade to the Schwab platform in May 2024, marking a significant milestone in its integration efforts.
Charles Schwab Corporation's Tier 1 Leverage Ratio increased to 9.7% as of September 30, 2024, supported by net income and reduced bank supplemental funding.
The filing also details various regulatory developments, including the SEC's amendments to Rules 610 and 612 of Regulation National Market System and the FDIC's proposed rulemaking to amend the brokered deposits framework.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Charles Schwab Corporation (The) quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.