In line with its own worst-case-scenario forecast, Charles Schwab Corp. reported a significant decline in first-quarter earnings due in part to a 19% decline in trading revenue.
The San Francisco discount brokerage company announced Thursday that profits declined 45%, to $119 million, or 10 cents per share, from $218 million, or 19 cents per share, a year earlier. Revenue declined 12%, to $978 million.
Net new accounts increased 20% from a year earlier, to 52,000. Total accounts rose 3%, to 5.4 million at March 31.
Total client assets under management increased 36%, to $1.49 trillion, from a year earlier and new brokerage accounts increased to 230,000, the highest since the first quarter of 2008.
As of March 31, Schwab had 7.8 million total brokerage accounts, 768,000 banking accounts, and 1.5 million retirement plan participants. Schwab said that this year the company plans to continue adding and improving its products and services.