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Sep 30, 2023
Charles Schwab Q3 2023 Earnings Report
Charles Schwab's Q3 2023 net income decreased compared to Q3 2022, but core net new assets exceeded $27 billion in September and the largest brokerage conversion event in history was successfully completed.
Key Takeaways
Charles Schwab Corporation reported a net income of $1.1 billion for Q3 2023, a decrease from $2.0 billion in Q3 2022. Despite a challenging economic backdrop, the company gathered $46 billion in core net new assets, including $27 billion in September following a successful Ameritrade client conversion. The company is focused on enhancing its wealth platform and has identified opportunities for at least $1 billion in incremental annual expense savings.
Net income for the third quarter of 2023 was $1.1 billion, compared to $2.0 billion for the third quarter of 2022.
Successfully completed the largest conversion event in the industry, transitioning $1.3 trillion in client assets.
Core net new assets gathered during the third quarter totaled $46 billion, with $27 billion in September alone.
Identified opportunities for at least $1 billion of incremental annual expense savings through increased efficiency and automation.
Revenue by Segment
Forward Guidance
Charles Schwab is focused on long-term value delivery through consistent strategy and competitive advantages.
Positive Outlook
- Prioritizing flexibility in balance sheet management to support client base growth.
- Advancing key strategic initiatives like scale and efficiency.
- Continuing to enhance the segmented offering for a broad range of clients.
- Investing in the platform to meet evolving investor needs.
- Remaining well-positioned to deliver long-term value to all stakeholders.
Challenges Ahead
- Challenging economic and geopolitical backdrop.
- Temporary utilization of higher cost funding.
- Lower interest-earning assets.
- Softer trading volumes.
- Client allocation decisions within a higher interest rate environment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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