• Schwab Bank’s first quarter deposits equal expected amounts at $269.5 billion, close to the estimated figure of $270.52 billion.
• Total net new assets came in at $88.2 billion, slightly lower than the anticipated sum of $91.18 billion.
• Exceeding expectations, total client assets stood at $9.12 trillion, surpassing the $9.02 trillion estimate.
• The bank’s adjusted Earnings Per Share (EPS) met expectations perfectly at 74c.
• Net revenue for Schwab performed well at $4.74 billion, slightly beating expectations of $4.71 billion.
• The daily average trades was higher than estimated, at 5.96 million compared to the 5.80 million assumption.
• Revenue per trade was slightly lower than expected at $2.25, compared to the predicted $2.32.
• Schwab’s net interest revenue matched expectations at $2.23 billion.
• Bank deposit account fees were lower than the projected figures, coming in at $183 million instead of the expected $194.9 million.
• Trading revenue also fell short of predictions at $817 million, compared to the estimated figure of $827.9 million.
• In contrast, asset management and administration fees exceeded expectations, registering $1.35 billion against the anticipated $1.32 billion.
• New brokerage accounts for the quarter were higher than anticipated at 1.09 million, well above the 977,393 forecasted.
• Total active brokerage accounts reached 35.30 million, surpassing the estimated 35.14 million.
• The bank had 18 buys, 6 holds, and only 2 sells for the reported quarter.
A look at Schwab (Charles) Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Charles Schwab (Schwab) shows a promising long-term outlook. With solid scores in Value, Growth, Resilience, and Momentum, the company appears to be well-positioned for future success. A Value score of 3 indicates a balance between stock price and the company’s intrinsic value, while a Growth score of 3 suggests potential for future expansion. Additionally, a Resilience score of 4 highlights the company’s ability to weather economic uncertainties, and a Momentum score of 4 reflects positive market momentum.
As a provider of financial services to a diverse range of clients, including individual investors and institutions, Schwab’s overall outlook seems favorable. While the Dividend score of 2 may indicate room for improvement in terms of payout to shareholders, the strong scores in other key areas paint a positive picture for the company’s future prospects in the financial services industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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