Financial Results
Charles Schwab Reports Strong Q2 Results

The brokerage and financial services firm reported a robust set of second-quarter figures and said it continues to develop services for clients such as US registered investment advisors.
San Francisco-headquartered Charles Schwab, the
brokerage and financial services firm working in sectors
including wealth management, has reported a 9 per cent
year-on-year rise in net income for the second quarter of this
year, reaching $353 million, also up 17 per cent from the first
three months of this year.
Financial results for the second quarter and first six months of
2015 include litigation proceeds of about $17 million (included
in “other” revenue) relating to the company’s non-agency
residential mortgage-backed securities portfolio; this increased
earnings per share by $0.01, it said in a statement last
week.
The firm gathered $37.0 billion of core net new assets, the
highest second quarter in the firm’s history, and maintained a 6
per cent annualised organic growth rate despite seasonal tax
outflows in April, Walt Bettinger, chief executive, said.
Clients opened 280,000 new brokerage accounts, up 16 per cent
year-over-year and another second-quarter record. Total client
assets were $2.54 trillion at quarter-end, up 6 per cent from a
year ago. Client assets under the guidance of a registered
independent advisor or enrolled in one of its retail or other
advisory solutions also rose 6 per cent year-over-year, to $1.26
trillion.
At the end of June, the firm served 9.6 million brokerage
accounts, 1.0 million banking accounts, and 1.5 million
retirement plan participants, up 4 per cent, 6 per cent and 10
per cent respectively from the second quarter of
2014.
New retail brokerage accounts for the quarter totaled
approximately 176,000, up 19 per cent year-over-year; total
accounts were 6.7 million as of 30 June, up 2 per cent
year-over-year, it said. The firm said it held financial planning
conversations with approximately 29,000 clients. Approximately
54,000 planning conversations have been held year-to-date.
On the advisor services side of the business, Charles Schwab
launched Institutional Intelligent Portfolios, an automated
investment management platform for RIAs; firms can create their
own set of portfolios choosing from over 450 ETFs across 28 asset
classes and all major fund families.