Dec 31, 2021

Charles Schwab Q4 2021 Earnings Report

Charles Schwab reported record earnings per share for the quarter, driven by strong client asset growth and active investor engagement.

Key Takeaways

Charles Schwab Corporation announced record net income of $1.6 billion for Q4 2021, compared to $1.1 billion for Q4 2020. Total client assets reached a record $8.14 trillion at year-end, up 22% versus December 2020. Core net new assets for the quarter totaled $162.2 billion, also a record.

Net income for the fourth quarter of 2021 was a record $1.6 billion, compared with $1.1 billion for the fourth quarter of 2020.

Total client assets reached a record $8.14 trillion at year-end, up 22% versus December 2020.

Core net new assets set a record at $162.2 billion for the quarter.

Company delivered record-breaking growth and financial performance in 2021.

Total Revenue
$4.71B
Previous year: $4.18B
+12.7%
EPS
$0.86
Previous year: $0.74
+16.2%
Core Net New Assets
$162B
Client Assets
$8.14T
Previous year: $6.69T
+21.7%
New Brokerage Accounts
1.32M
Gross Profit
$4.71B
Previous year: $4.18B
+12.7%
Cash and Equivalents
$63B
Previous year: $40.3B
+56.1%
Free Cash Flow
$5.33B
Previous year: $13.1B
-59.3%
Total Assets
$667B
Previous year: $549B
+21.5%

Charles Schwab

Charles Schwab

Charles Schwab Revenue by Segment

Forward Guidance

The company did not provide specific financial guidance for 2022 in this earnings release. However, they expressed confidence in their long-term growth opportunities and commitment to delivering stockholder value.

Positive Outlook

  • Focusing on quality client service.
  • Pushing forward with firm-wide initiatives.
  • Building a stronger and more capable company.
  • Progress in uniting as a single team.
  • Talent, culture, and client-first strategy.

Challenges Ahead

  • Fluctuating environment.
  • Increasing debates regarding the overall pace of economic growth.
  • Potential path of inflation.
  • Ultimate impact of multiple global market disruptions.
  • Short-term interest rates remained near zero throughout the year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income