million, or 15 cents a share. Revenues were $884 million.

The San Francisco discount brokerage had net income of $98 million, or 12 cents a share, on revenues of $705 million a year earlier.

The jump came despite a lower interest rate environment and a resulting decline in on-line trading volume, Charles R. Schwab, chairman and co-chief executive, said in a prepared statement. Customers brought in $25 billion of net new assets in the third quarter, up 31%, and opened 282,000 new accounts.

On-line securities transactions were down throughout the industry, said Amy Butte, a securities industry analyst with Bear, Stearns & Co. But higher mutual fund service fees and net interest income offset the shortfall, Ms. Butte said.

Meanwhile, Schwab's total assets increased 4% during the quarter, compared with a 1% uptick at Merrill Lynch & Co. and a 1.6% increase at PaineWebber Group.

Schwab, Ms. Butte said, "is becoming the financial portal of choice."

-- Karen Talley

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