Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Charles Schwab's Q2 earnings in line, but new brokerage accounts disappoint
(Sharecast News) - American financial services group Charles Schwab met analysts' estimates with its second-quarter revenues and profits on Tuesday while total client assets hit an all-time high, but shares were falling sharply in pre-market trade as the number of new brokerage accounts came up short. Earnings per share came in at 73 cents, down marginally from the 74 cents reported in the second quarter of 2023 but slightly above the 72 cents expected by the market. Revenue were bang in line with consensus at $4.68bn, down from $4.78bn previously.
The company said total client assets hit a record $9.4trn during the quarter, driven by the strong performance of equity markets and "organic asset gathering", while core net new assets totalled $61.2bn, with both indicators up 17% year-on-year.
Net flows into Managed Investing solutions reached $25bn, up 56% over the year-to-date compared with the first six months of 2023. "Client interest in our broad array of wealth solutions remained strong through June. Year-to-date enrolments are up [around] 30% versus the prior year period," said co-chairman and chief executive Walt Bettinger.
Bettinger said Schwab's "no trade-offs proposition continued to resonate with investors" during the period, with new brokerage accounts opened this year topping the 2m mark.
However, while the company reported 985,000 new brokerage accounts were opened during the second quarter, up from 960,000 a year earlier, that was fewer than the 1.04m expected by analysts.
Stock futures were down 4% at $72.06 by 0754 in New York, following a 20% gain over the past six months.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.