Charles Schwab (SCHW) posted its highest quarterly profit since the financial crisis on Tuesday. The online broker’s third quarter revenue of $1.37 billion was the best since the height of the Internet bubble more than a decade ago. Estimates called for $1.34 billion in revenue for the company.
Schwab was also able to deliver 22 cents per share on the bottom line, which was two cents better than analysts were expecting. Net income at the online broker was $290 million, up 13% from the same quarter a year ago.
Schwab reported core net new assets of nearly $43 billion, which is 97% higher than a year ago. The company reported a pre-tax profit margin of 33.8% in the quarter.
The company has been pushing its advising services since low interest rates have hurt Schwab’s revenue from managing assets. Daily Average Revenue Trades (DARTs) were up 8% from a year ago, but down 6% from the second quarter. These numbers suggest that the summer downturn in volume wasn’t quite as pronounced this year.
Schwab CEO Walt Bettinger said in the conference call on Tuesday that Schwab now has over $2 trillion in assets. Bettinger later said, “Even with the continued headwind created by an interest rate environment that remains at historical lows, our third quarter revenues surpassed all our prior quarterly results save the extraordinary spike we experienced at the height of the internet bubble.”
Schwab was upbeat about earnings growth moving forward. Investors were not surprisingly very encouraged by this report. Despite the overall market being down big on Tuesday, shares of Charles Schwab rose by more than 5 percent.
For the full press release with Schwab’s third quarter earnings release click here.