Shares of Charles Schwab (NYSE:SCHW) rose Monday after reporting first-quarter earnings results.
The brokerage firm reported earnings per share that came in three cents above expectations, according to Refinitiv. Revenue for the recent quarter came in slightly below the $5.13 billion expected.
Schwab also announced a pause on buybacks and an 11% decrease in bank deposits from the fourth quarter of 2022.
The stock’s come under pressure in recent weeks amid the fallout from Silicon Valley Bank’s collapse.
“While bank deposits shrank by 11% versus the prior year-end as clients realigned their allocations across our expansive selection of transaction and investment cash solutions, we observed a decline in the average daily pace of bank sweep movements from January to March – even when allowing for a temporary spike in activity at the onset of the banking system turmoil,” said CFO Peter Crawford.
He added that the company has decided to pause its active share buyback program “in light of recent events within the U.S. banking sector, and the resulting regulatory uncertainty.”
Q1 adjusted EPS of $0.93 , topping the average analyst estimate of $0.90, fell from $1.07 in Q4 2022 and climbed from $0.77 in the year-ago quarter.
Net interest revenue came in at $2.77B for the three months ended March 31, down from $3.03B in the prior quarter and up from $2.18B in Q1 2022.
SCHW shares picked up 68 cents, or 1.3%, to begin Monday and the week at $51.45.