Loading...
•
Dec 31, 2019
Charles Schwab Q4 2019 Earnings Report
Charles Schwab's Q4 2019 earnings decreased compared to Q4 2018, but full-year revenues and net income increased.
Key Takeaways
Charles Schwab reported a decrease in net income for Q4 2019 to $852 million, a 9% decrease compared to Q4 2018. However, full-year revenues and net income reached record levels, growing 6% to $10.7 billion and $3.7 billion, respectively. The company saw record fourth-quarter core net new assets of $66.2 billion and total client assets surpassing $4 trillion.
Q4 net income was $852 million, down 9% from Q4 2018.
Full-year revenues reached a record $10.7 billion, up 6% year-over-year.
Full-year net income also hit a record $3.7 billion, up 6% year-over-year.
Core net new assets for the year totaled $211.7 billion, representing a 7% organic growth rate.
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
This press release contains forward-looking statements relating to building value for stakeholders; the company’s (i) acquisition of certain assets of USAA’s Investment Management Company (IMCO) and entering into a referral agreement with USAA and (ii) acquisition and subsequent integration of TD Ameritrade, including the timing of closing those acquisitions; balancing long-term profitability with reinvesting for growth; balance sheet management; business growth; capital returns to stockholders; and Tier 1 Leverage Ratio operating objective.
Positive Outlook
- building value for stakeholders
- acquisition of certain assets of USAA’s Investment Management Company (IMCO) and entering into a referral agreement with USAA
- acquisition and subsequent integration of TD Ameritrade, including the timing of closing those acquisitions
- balancing long-term profitability with reinvesting for growth
- business growth
Challenges Ahead
- general market conditions, including the level of interest rates, equity valuations, and trading activity
- the company’s ability to attract and retain clients and registered investment advisors and grow those relationships and client assets
- competitive pressures on pricing, including deposit rates
- client sensitivity to rates
- the company’s ability to manage expenses
Revenue & Expenses
Visualization of income flow from segment revenue to net income