BlackRock, Inc. Beats Estimates, Charles Schwab Corp In Line

BlackRock, Inc. (NYSE:BLK) and Charles Schwab Corp (NYSE:SCHW) released their second quarter results before opening bell this morning. BlackRock posted earnings of $4.89 per share, excluding items, on revenue of $2.78 billion, a 12% increase. Analysts had been expecting the firm to report earnings per share of $4.46 on $2.72 billion in revenue.

Charles Schwab posted earnings per share of 23 cents, which was in line with consensus estimates at 23 cents per share. Revenue was $1.48 billion, compared to analyst estimates of $1.47 billion for the quarter.

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Breaking down BlackRock’s earnings

BlackRock reported $808 million in profits or $4.72 per share. That’s compared to $4.19 per share or $729 million in the same quarter a year ago. The firm cited a surge in assets under management as the driver for its increases in profits and revenue.

The firm had $4.59 trillion in assets under management at the end of the quarter, which is a 19% year over year increase and a 4.4% sequential increase. Long-term net inflows were $38.02 billion, while retail inflows were $13.13 billion. The firm’s iShares exchange-traded-fund segment reported $30.45 billion in net inflows.

Breaking down Charles Schwab’s earnings

Charles Schwab posted $324 million in net income for the second quarter, compared to $326 million for the first quarter and $256 million in the same quarter a year ago. Net income for the six months ending June 30 was $650 million, a 41% increase year over year. Total client assets hit $2.4 trillion, a new record and a 17% year over year increase. Net new assets were $11.5 billion last month and $22.7 billion in all of the second quarter.

The firm’s bank reported $103.7 billion on its balance sheets and outstanding mortgage and home equity loans of $11.1 billion. It posted $605 million in first mortgage originations during the quarter and .32% in delinquency ratio. The bank’s nonaccrual ratio was .29%, while its loss reserve ratio was .32%.

Charles Schwab reported $19 billion in client assets managed by its Windhaven segment and $5.7 billion in client assets managed by ThomasPartners.