Charles Schwab (SCHW) is trading 2% higher after the company beat first quarter estimates this morning.
Earnings grew 41% to $0.55/share, while net revenue grew 15% to $2.4 billion, marking eleven consecutive record quarters.
Chief Executive Walt Bettinger said, "In the first quarter, investors experienced sharp market swings after nine consecutive quarters of positive S&P 500returns. Amidst the volatility, client interactions surged as we offered the insight and assistance they expect -- call volumes and web logins from both our retail and independent advisor clients were up nearly 20% and 50% from their respective quarterly averages. Engagement remained strong during the quarter, with trading activity rising nearly 40% year-over-year to a new all-time high and clients continuing to be net buyers of securities. New accounts totaled 443,000 company-wide -- the highest quarterly level in 18 years. In addition, households new to our Retail business rose 42% versus the first quarter of 2017. Excluding planned mutual fund clearing outflows of $84.4 billion, our clients entrusted us with record quarterly core net new assets of $65.6 billion, implying an annualized growth rate of 7.8% -- a level not seen since 2008. This strength in asset gathering spanned our largest businesses, as Advisor Services and Retail both set new records, with inflows up 27% and 64%, respectively, from last year. Our outstanding organic growth helped to partially offset market declines, and we ended the quarter serving $3.31 trillion in client assets, up 13% from last year, across 11.0 million active brokerage accounts, 1.2 million banking accounts, and 1.6 million retirement plan participants."
CFO Peter Crawford commented, "We've achieved another quarter of record financial performance, driven in part by sustained business momentum, higher interest rates, and lower corporate taxes. Net interest revenue grew 26% to a record $1.3 billion due to larger client cash sweep balances as well as the impact of the Fed's 2017 and March 2018 rate hikes -- our net interest margin expanded to 2.12%, up from 1.87% a year earlier. Asset management and administration fees increased 3% to $851 million."
Schwab ( SCHW +2%) is leading retailer brokers Ameritrade (AMTD +1%) E*TRADE (ETFC +1%) following strong frist quarter results.