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U.S. Investment Firm Charles Schwab Reports Mixed Q3 Results
Charles Schwab (SCHW), a leading U.S. investment firm, has reported mixed financial results for this year's third quarter amid a challenging environment of high interest rates and inflation.
The company reported earnings per share (EPS) of $0.77 U.S., which was better than the consensus expectation of $0.75 U.S. expected among Wall Street analysts, according to Refinitiv data.
Revenue for the July through September quarter amounted to $4.61 billion U.S. versus analyst estimates of $4.65 billion U.S. Revenue in Q3 was down 16.3% from a year ago.
The company said that its net interest revenue dropped 23.5% to $2.24 billion U.S. during Q3, beating consensus forecasts.
Revenue from trading activities declined 17.4% to $768 million U.S. and missed analysts' expectations for $804 million U.S.
New brokerage accounts in the quarter were flat from a year ago but down 7% from the previous second quarter of 2023.
Charles Schwab, which is the largest publicly traded U.S. brokerage firm, said it continues to be challenged by high levels of inflation and rising interest rates used to lower consumer prices.
The stock of Charles Schwab has fallen 24% over the past 12 months and currently trades at $51.33 U.S. per share.
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