Investing.com -- Charles Schwab Corporation saw its stock jump 6% after reporting fourth-quarter earnings and revenue that handily beat analyst expectations, driven by strong client engagement and asset gathering.
The financial services giant posted adjusted earnings per share of $1.01, surpassing the consensus estimate of $0.89. Revenue climbed 20% YoY to $5.3 billion, topping analyst projections of $5.13 billion.
Schwab added $114.8 billion in core net new assets during Q4, bringing the full-year 2024 total to $366.9 billion - a 20% increase from 2023. Total (EPA:TTEF) client assets rose 19% YoY to $10.10 trillion.
"Strong client engagement, increased margin utilization, encouraging client cash trends, and record net inflows into our Managed Investing Solutions helped lift Q4 revenue to $5.3 billion," said CEO Rick Wurster.
The company’s adjusted pre-tax profit margin expanded to 46.6% in Q4, up from 36% a year earlier. Client transactional sweep cash balances grew by $34.6 billion sequentially to $418.6 billion.
Schwab opened 1.1 million new brokerage accounts in Q4, up 23% YoY, bringing total active accounts to 36.5 million. Trading activity increased 11% compared to Q3 as client engagement surged following the election.
Looking ahead, management expressed confidence in Schwab’s competitive position and ability to drive continued growth as it capitalizes on opportunities from the completed Ameritrade integration.