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Dec 31, 2022
Charles Schwab Q4 2022 Earnings Report
Charles Schwab's Q4 2022 earnings demonstrated growth in net income and EPS, driven by a rise in net revenues.
Key Takeaways
Charles Schwab reported a strong Q4 2022, with net income reaching $2.0 billion, a 25% increase year-over-year. Earnings per share also saw a significant rise, climbing to $0.97. The company's success was underpinned by a 17% increase in net revenues, which totaled $5.5 billion.
Net income for Q4 2022 increased by 25% to $2.0 billion compared to Q4 2021.
Earnings per share (EPS) rose to $0.97, a 28% increase from $0.76 in Q4 2021.
Net revenues for Q4 2022 grew by 17% to $5.5 billion compared to $4.7 billion in Q4 2021.
The company added over 4 million new brokerage accounts, bringing the total to nearly 34 million.
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
Management provided forward guidance, outlining both positive and negative factors expected to influence the company's performance.
Positive Outlook
- Ongoing preparations for the largest broker-dealer integration in our industry’s history
- Further empower investors with more personalization options
- Increased access to high-quality products
- Evolved suite of tools and solutions
- Leading value proposition to RIAs by expanding our institutional no transaction fee mutual fund platform
Challenges Ahead
- Emerging concerns around inflation and global market stability became reality, with Russia’s invasion of Ukraine exacerbating the impact.
- Equity markets suffered their worst year since 2008
- The Federal Reserve tightened short-term rates at the fastest pace in 40 years
- Uncertainty around future economic growth increased during the back half of the year, weighing on longer-term rates and leading to an inverted yield curve.
- Persistent bearish sentiment amongst investors for most of the year
Revenue & Expenses
Visualization of income flow from segment revenue to net income