Schw.US Q3 profit exceeded expectations, core net assets increased by more than US$95 billion

The Zhitong Finance App learned that Schw.US announced third-quarter results with profits exceeding expectations, and said it had cut some of its expensive debts.

The company said that adjusted earnings per share for the quarter were 77 cents, higher than analysts' expectations of 75 cents, net revenue of US$4.85 billion, higher than analysts' average estimate of US$4.79 billion, and net interest income of US$2.22 billion, higher than the forecast of US$2.20 billion.

The company also said that its clients' transaction cash balances climbed $9 billion month-on-month, helping the company reduce bank replenishment by $8.9 billion.

Carson Wealth Management executives said that in the past, the Federal Reserve's sharp interest rate hike dealt a heavy blow to the business of Charles Schwab Management because customers sought higher-yield options, but the worst situation has subsided.

Additionally, Carson Wealth Management executives said last quarter that they are considering ways to reduce the bank's balance sheet.

CEO Walt Bettinger said, “Net assets increased by more than $95 billion in the third quarter, driving core net new assets to $252 billion from the beginning of the year to date, an increase of 10% over the same period from the beginning of 2023.”

According to information, Carson Wealth Management appointed Rick Wurster as the company's next CEO earlier this month to replace Bettinger, the long-term head who will retire at the end of the year, and take over the retail brokerage business. Prior to Wurster's appointment, there was also a reshuffle in other leadership, including the Chief Financial Officer. Mike Verdeschi officially succeeded Peter Crawford on October 1, and Crawford will assist Verdeschi during the transition period.

After the financial report was announced, before the US stock market on Tuesday. As of press release, the company's stock price was rising by about 8%.