Schwab (SCHW) Slumps as Q4 Profit Clipped by Expenses; Net New Accounts Fall - InvestingChannel

Schwab (SCHW) Slumps as Q4 Profit Clipped by Expenses; Net New Accounts Fall

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Charles Schwab (NYSE: SCHW) shares are ticking lower Wednesday following fourth-quarter 2012 earnings that came up flat to expectations…literally.

According to data from the company, revenue rose 9.2 percent to $1.215 billion, from $1.113 billion in the same period last year. Net income improved 29 percent to $211 million, or 15 cents per share.

The Street was looking for revs of $1.21 billion and profit at 15 cents per share.

Our individual client loyalty scores reached new highs during the year, and our client metrics ended strongly, with December core net new assets totaling a record $22.6 billion, 28% higher than the previous record set in March 2008. Core net new assets totaled $112.4 billion for 2012, up 37% over the prior year,” commented CEO Walt Bettinger. “We ended the year with a record $1.95 trillion in total client assets, up 16% over December 2011. We added 900,000 new brokerage accounts to our client base during 2012, and active brokerage accounts reached a record 8.8 million at year-end, up 3% year-over-year. In addition, we served 865,000 banking accounts and 1.6 million corporate retirement plan participants as of month-end December 2012, up 11% and 5%, respectively.”

Net new accounts fell 69 percent, or 4,000 accounts.

Shares are down 1.8 percent today.

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