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Mar 31, 2022
Charles Schwab Q1 2022 Earnings Report
Charles Schwab's Q1 2022 financial results reflected ongoing success with clients amidst a challenging environment.
Key Takeaways
Charles Schwab reported a net income of $1.4 billion for Q1 2022, a decrease compared to both Q4 2021 and Q1 2021. The company attracted 1.2 million new brokerage accounts and $121 billion in core net new assets. Total client assets reached $7.86 trillion, up 11% year-over-year.
Core net new assets totaled $120.5 billion, representing a 6% annualized organic growth rate.
Total client assets finished at $7.86 trillion, up 11% year-over-year.
The company attracted 1.2 million new brokerage accounts during the first quarter.
Trading activity averaged more than 6.5 million trades a day.
Charles Schwab
Charles Schwab
Charles Schwab Revenue by Segment
Revenue by Segment
Net Interest Revenue
CapyFin.comAsset Mgmt & Admin Fees Revenue
CapyFin.comTrading Revenue
CapyFin.comOther & Bank Fees Revenue
CapyFin.com Forward Guidance
The press release contains forward-looking statements relating to business momentum; strategic initiatives; TD Ameritrade integration; growth in the client base, accounts, and assets; investments to attract and retain talent, improve service and the client experience, expand products, services and offerings to meet client needs, diversify revenues, and drive scale and efficiency; expense management; balancing near-term profitability and long-term investment; capital management; and financial strength and flexibility.
Positive Outlook
- Ability to attract and retain clients and independent investment advisors and grow those relationships and client assets
- Develop and launch new and enhanced products, services, and capabilities, as well as enhance its infrastructure and capacity, in a timely and successful manner
- Hire and retain talent
- Support client activity levels
- Successfully implement integration strategies and plans
Challenges Ahead
- General market conditions, including equity valuations, trading activity, and the level of interest rates
- Market volatility
- Client use of the company’s advisory solutions and other products and services
- Client sensitivity to rates
- Level of client assets, including cash balances
Revenue & Expenses
Visualization of income flow from segment revenue to net income