Charles Schwab (SCHW) reported fourth quarter earnings that came in above analysts expectations. Schwab reported revenue of $1.44 billion for the quarter. In the same quarter last year, Schwab reported $1.22 billion. Revenues grew by 18% on a year over year basis. Net income jumped by a much bigger 51% from a year ago. The online broker reported a profit of $319 million, or 23 cents per share. Last year, Schwab earned only 15 cents per share in the fourth quarter. Analysts were expecting the company to report earnings of 21 cents per share and revenue of $1.44 billion, so Schwab did beat on both the top and bottom lines.
For the full year in 2013, Schwab netted $1.07 billion (78 cents per share). That compares favorably to the $928 million and 69 cents per share the broker earned in 2012. During 2013, Schwab pushed to become less reliant on the volatile trading business. The company has focused its efforts in advisory markets as well as expanding its client base. Schwab also reported that it now has a record $2.25 trillion in client assets.
Core net new assets of $140.8 billion were up 25% over the prior year. Schwab CEO Walt Bettinger attributed the company’s positive quarterly and yearly results to the success of their “through clients’ eyes” strategy. CFO Joe Martinetto said, “Overall, in a relatively stable operating environment we delivered on our financial objectives for 2013.”
For the full press release on fourth quarter and 2013 yearly results from Charles Schwab click here.