Charles Schwab (SCHW) Q3 Income Fell 38% on Default Charge

October 15, 2010 9:55 AM EDT
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Charles Schwab Corp. (NYSE: SCHW) said on Friday that its net income for the third quarter fell 38 percent as the retail brokerage booked a charge Thursday from the 2008 default of a single structured investment linked to is money market mutual funds.

The company reported third-quarter earnings of $124 million or 10 cents per share, down from $200 million or 17 cents per share in the same quarter last year.

Excluding the impact of one-time items, the company's net income was $218 million.

Revenue for Charles Schwab rose 5 percent to $1.06 billion, marking the company's first year-over-year increase since the second quarter of 2008.

On average analysts had been looking for earnings of 9 cents per share on revenue in line with the company's results.

"At a time when investors need help more than ever, we believe our model is the best for assisting clients in finding the right path forward, whether they’re utilizing our unique combination of investment principles, market and economic perspectives, personalized guidance and investment products, or working with an independent investment advisor," Chairman Charles Schwab commented.

Shares of Charles Schwab are up 21 cents to $14.30 in early market movement on Friday.

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