Charles Schwab Corp (NYSE: SCHW) reported
a 28 percent increase in its bottom line for the second quarter driven by 17 percent uptick in the top line. While revenue exceeded
the Street expectations, earnings were in line with the predictions.
The Charles Schwab said its net income advanced 28 percent to $452 million from $353 million in the year-ago quarter. On a per
share basis, earnings advanced 20 percent to $0.30 a share from $0.25 a share, which was in line with the estimations.
The company's top line grew 17 percent to $1.83 billion from $1.57 billion in the previous year quarter. Street expected the
company to generate $1.8 billion revenue.
CEO Walt Bettinge commented on the results saying, "Our second quarter pre-tax profit margin of 39.4% was the highest since our
record performance in 2008. During the intervening seven-plus years, we have focused on balancing near-term profitability with
reinvestment to drive growth, while working through the economic and interest rate aftermath of the financial crisis."
He added, "From 2009 through mid-2016, we coped with extraordinary pressure on our revenues while investing approximately $3
billion in our brand and service capabilities, expanding our client base by approximately $1.20 trillion to $2.62 trillion, and
building our earnings to today's record level. Our second quarter pre-tax profit margin represented the 13th consecutive quarter in
excess of 30% and a significant improvement from the sub-30% margins that followed the crisis."
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