Charles Schwab Corp. (SCHW) Tops Q1 EPS by 2c

Charles Schwab Corp. (NYSE: SCHW) reported Q1 EPS of $0.24, $0.02 better than the analyst estimate of $0.22. Revenue for the quarter came in at $1.48 billion versus the consensus estimate of $1.47 billion.

Highlights:

Investor Services

• Net new retail brokerage accounts for the quarter totaled approximately 35,000, down from 41,000 a year ago; total accounts reached 6.6 million as of March 31, 2014, up 3% year-over-year. Retail brokerage accounts now include Compliance Solutions and Stock Plan Services.
• Launched the exchange-traded fund (ETF) version of Schwab Index Advantage® (SIA), a full-service 401(k) program based on fully integrating low-cost ETFs as core investments in the plan; SIA-ETF provides clients commission-free intraday investing along with the ability to transact in partial shares.
• Held financial planning conversations with approximately 29,000 clients, up 30% from a year ago.

Advisor Services

• Launched Schwab OpenView Mobile™, a customizable app that Registered Investment Advisors can use to create a turnkey, branded mobile presence for their firms.

Products and Infrastructure

• For Charles Schwab Bank:
  • Balance sheet assets = $103.3 billion, up 16% year-over-year.
  • Outstanding mortgage and home equity loans = $11.1 billion, up 8% year-over-year.
  • First mortgage originations through its loan program during the quarter = $465 million.
  • Delinquency, nonaccrual, and loss reserve ratios for Schwab Bank’s loan portfolio = 0.44%, 0.32% and 0.38%, respectively, at month-end March.
  • Schwab Bank High Yield Investor Checking® accounts = 740,000, with $12.3 billion in balances.
• Client assets managed by Windhaven® totaled $18.5 billion, up 19% from the first quarter of 2013.
• Client assets managed by ThomasPartners® totaled $5.0 billion, up 92% from the first quarter of 2013.
• Total assets in Schwab Managed Portfolios-ETFs = $19.9 billion.
• Extended an agreement with J.P. Morgan to provide Schwab clients with access to a broad range of J.P. Morgan’s new issue and secondary municipal bonds and corporate debt securities.
• Announced the availability of the Pledged Asset Line® (PAL) for Investor Services clients. The PAL product enables clients to remain fully invested while providing liquidity for personal or business needs.

For earnings history and earnings-related data on Charles Schwab Corp. (SCHW) click here.

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