(Adds detail on client assets, comparison with estimates)
July 16 Charles Schwab Corp 's
second-quarter revenue and profit grew at double-digit rates,
slightly exceeding Wall Street expectations.
Once known as a pioneering discount broker for self-directed
investors, the San Francisco-based company now emphasizes its
full-service and advisory capabilities for wealthy investors
offered through investment advisers.
The shift helped it amass $2.4 trillion of client assets as
of June 30, the highest in its history and up 17 percent from a
"Many of our clients are at a stage where they have
accumulated significant asset levels, they are increasingly
looking for professional help," Chief Executive Walt Bettinger
said in a statement.
Schwab's second-quarter net income of $324 million was up 27
percent from a year ago, or 28 percent on a per-share basis to
23 cents. Its revenue of $1.48 billion climbed 11 percent.
Analysts had forecast earnings per share of 22 cents and
revenue of $1.47 billion, according to Thomson Reuters I/B/E/S.
New accounts opened during the second quarter fell 6 percent
from the first quarter to 242,000, but total active brokerage
accounts rose 3 percent to 9.3 million.
Schwab's return on equity rose to 12 percent from 10 percent
a year ago, and its pretax profit margin - a measure of how its
expense growth contrasts with revenue margin - hit 35.3 percent
from 30.8 percent a year ago.
(Reporting by Jed Horowitz in New York; Editing by Nick