Charles Schwab Corp, the number one US discount and Internet broker, said today its fourth-quarter profit fell 27 per cent as a slumping stock market caused a drop in trading and brokerage commission revenues.
San Francisco-based Schwab, which has about 7.5 million brokerage accounts and $872 billion in assets, reported a net income of $138.7 million, or 10 cents per share on a reported basis, for the fourth-quarter. That compared with a profit of $190.5 million, or 14 cents per share, in the same period last year.
Revenue rose 5 per cent to $1.33 billion, Schwab said. On an operating basis, the broker's quarterly profit fell 15 percent to $161 million, or 11 cents per share.
The operating results fell short of Wall Street's lowered expectations calling for Schwab to earn 12 cents per share, according to market research firm First Call/Thomson Financial.
Schwab added $41 billion in assets during the quarter, up from $33 billion last year. Schwab shares, which rose 11 percent last year, finished at $28-1/4 on the New York Stock Exchange yesterday.
Reuters