Charles Schwab Corp’s (NYSE:SCHW) earnings of $247 million for the third quarter of 2012 increased by 12 percent, compared with its $220 million earnings during the same period last year, due higher administration and asset management fees.
According to the company, its administration and asset management fees increased by 6 percent, driven by improved net money market fund yields. Schwab also maintained its 30 percent pre-tax profit margin during the quarter.
During the third quarter, Charles Schwab Corp (NYSE:SCHW) posted $1.19 billion net revenue and $0.19 diluted earnings per share. The result is one percent higher compared to its $1.18 billion net revenue and $0.18 diluted earnings per share in 2011.
Analysts expect the company to report $1.2 billion revenue and $0.17 earnings per share for the third quarter.
In a statement, Walt Bettinger, chief executive officer of Charles Schwab Corp (NYSE:SCHW) said, “Our clients remain resilient yet cautious in this challenging economic environment. They continue to be net purchasers of securities; their cash holdings at Schwab remain at pre-crisis levels, and while their trading activity this summer was muted, it’s been consistent with our experience in prior presidential election years.”
According to Bettinger, Charles Schwab Corp (NYSE:SCHW) has 198,000 new brokerage accounts, $2.8 billion worth of net new enrollments in retail advisory offerings, and $21.7 billion worth of core net new assets; which shows that the company has solid third quarter metrics.
Charles Schawab’s overall active brokerage accounts were 8.7 million and its total banking accounts were 844,000, by the end of the quarter. The company’s retail advised balances increased to $123.8 billion, and its total client assets rose to $1.89 trillion, both climbed by 20 percent by the end of September.
The company’s trading business revenue of $204 million during the third quarter declined by 18 percent from its $248 million trading revenue during the same period last year. Its total expenses increased by 1.7 percent to $835 million (excluding interest).
Charles Schwab Corp (NYSE:SCHW) also announced on Monday, its agreement to acquire ThomasPartners Inc. for $85 million in cash. ThomasPartners has $2.3 billion assets under management. Both companies agreed that ThomasPartners could receive additional payments from Charles Schwab, based on future growth of the assets. The transaction is expected to close during the fourth quarter.