Loading...
•
Mar 31, 2023
Charles Schwab Q1 2023 Earnings Report
Charles Schwab's Q1 2023 net income increased, driven by revenue growth and disciplined expense management.
Key Takeaways
Charles Schwab reported a strong first quarter in 2023, with net income reaching $1.6 billion, a 14% increase compared to Q1 2022. The company experienced 10% year-over-year revenue growth and a GAAP pre-tax profit margin of 41.2%. Client assets reached $7.58 trillion, supported by substantial core net new assets of $132 billion.
Net income increased by 14% year-over-year, reaching $1.6 billion.
Total client assets grew to $7.58 trillion.
Clients opened over 1 million new brokerage accounts.
Advisor Services segment posted a record first quarter with over $71 billion in net flows.
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
Schwab is focused on long-term growth, scale and efficiency, win-win monetization, and segmentation, while navigating market conditions and regulatory uncertainty.
Positive Outlook
- The company is focused on completing the Ameritrade integration to unlock opportunities.
- Schwab is focused on enhancing Schwab Personalized Indexing (SPI) to expand personalization options for clients.
- There is a tremendous opportunity in meeting the advice needs of both Schwab and legacy Ameritrade clients.
- Schwab is focused on pressing competitive advantages by emphasizing its attractive value proposition and service experience.
- Opportunistic capital return is still an important component of the company's financial formula.
Challenges Ahead
- Bank deposits shrank by 11% versus the prior year-end as clients realigned their allocations.
- The company observed a decline in the average daily pace of bank sweep movements.
- Trading revenue declined.
- Bank deposit account revenue was down due in part to a $97 million one-time breakage fee.
- The company decided to pause its active buyback program due to recent events within the U.S. banking sector and resulting regulatory uncertainty.
Revenue & Expenses
Visualization of income flow from segment revenue to net income