Charles Schwab Reports Second-Quarter 2024 Results; SCHW Shares Drop on Adjusted Net Income and Revenue Figures

The Charles Schwab Corporation reported its second-quarter 2024 results, leading to a decrease in SCHW shares. Adjusted net income fell by 2% year-over-year to $1.465 billion, while adjusted earnings per share dropped by 3% to $0.73, surpassing the estimated $0.72. Revenue increased by 1% to $4.69 billion, outperforming the anticipated $4.68 billion. Asset management and administration fees experienced an 18% year-over-year increase to $1.38 billion.

Despite the rise in asset management fees, the bank faced challenges as net interest revenue declined by 6% year-over-year to $2.158 billion in the second quarter. The company ended the quarter with $252.4 billion in deposits, demonstrating a 17% decrease from the previous year. On a positive note, daily average trades by clients grew by 4% year-over-year to 5.486 million. Furthermore, Charles Schwab’s core net new assets surged by 17% year-over-year to $61.2 billion in the second quarter, driving total client assets to $9.41 trillion by quarter-end.

CEO Walt Bettinger highlighted the ongoing strong interest from clients in the company’s wealth solutions, showcasing a significant uptick in enrolments and net flows into Managed Investing solutions compared to the previous year. Despite the challenges faced in the second quarter, Charles Schwab remains a prominent player in the industry. At present, SCHW shares are down by 7.77% at $69.23 premarket. Investors interested in the stock have the option to explore exposure through ETFs like IShares U.S. Broker-Dealers & Securities Exchanges and Tidal ETF Trust God Bless America ETF YALL.