Charles Schwab Q3 2022 Earnings Report
Key Takeaways
Charles Schwab reported a record quarterly performance in Q3 2022, with revenues rising 20% year-over-year to $5.5 billion and net income reaching $2.0 billion, up 32%. Core net new assets totaled $115 billion, representing a 7% annualized growth rate. The company's GAAP earnings per share reached a record of $0.99, with an adjusted EPS of $1.10.
Core net new assets reached $115 billion, a 7% annualized growth rate.
Revenues increased 20% year-over-year to $5.5 billion.
Net income rose 32% to $2.0 billion.
GAAP earnings per share reached a record $0.99, with adjusted EPS at $1.10.
Charles Schwab
Charles Schwab
Charles Schwab Revenue by Segment
Forward Guidance
Schwab is focused on driving sustained business momentum and delivering a high-quality wealth experience while building long-term value for stockholders.
Positive Outlook
- Continue to drive robust business growth.
- Modern wealth management approach provides a wide array of investing and financial capabilities.
- Continue investment across our three strategic initiatives: scale and efficiency, client segmentation, and win-win monetization
- Diligent balance sheet management keeps us positioned to navigate a rapidly evolving environment while concurrently enhancing our financial performance and returning excess capital to our owners.
- Durability of our all-weather model and its ability to deliver both profitable growth and meaningful return of excess capital through the cycle.
Challenges Ahead
- Prolonged environmental challenges can impact clients’ financial confidence
- Equity markets remained under pressure throughout the quarter
- The Federal Reserve assumed an increasingly hawkish stance, tightening monetary policy at the fastest rate in four decades
- The continued war in Ukraine, along with increasing challenges across other major global economies weighed on overall market sentiment.
- Challenging equity markets weighed on client asset balances
Revenue & Expenses
Visualization of income flow from segment revenue to net income