Skip to Content

Charles Schwab Corp SCHW

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Charles Schwab Reports Record Third-Quarter Net Income Due to Asset-Related Revenue Growth

Michael Wong, CFA, CPA Sector Director

Analyst Note

| Michael Wong, CFA, CPA |

Wide-moat Charles Schwab booked record net income in the third quarter of 2021, as asset-related fees climbed while expenses remained well managed. The company reported net income of $1.41 billion, or $0.74 per diluted share, on $4.57 billion of net revenue. Net income was 1% higher than the prior record of $1.39 billion in the first quarter of 2021. Net revenue in the quarter was 3% lower than the first quarter of 2021 peak, as a 6% increase in net interest income to $2.03 billion and an 8% increase in asset management fees to $1.1 billion weren’t enough to offset a 21% decline in trading revenue to $964 million. We don’t anticipate making a material change to our $70 fair value estimate for Charles Schwab.

Read Full Analysis

Company Profile

Business Description

Charles Schwab operates in the brokerage, banking, and asset-management businesses. The company runs a large network of brick-and-mortar brokerage branch offices and a well-established online investing website. It also operates a bank and a proprietary asset management business and offers services to independent investment advisors. The company is among the largest firms in the investment business, with over $6.5 trillion of client assets at the end of 2020. Nearly all of its revenue is from the United States.

Contact
211 Main Street
San Francisco, CA, 94105
T +1 415 667-7000
Sector Financial Services
Industry Capital Markets
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2019
Stock Type Cyclical
Employees 32,500

Related