Charles Schwab’s fourth-quarter profit soars on higher asset management fees

BROKERAGE firm Charles Schwab said on Tuesday (Jan 21) that its profit rose 44 per cent in the fourth quarter driven by a jump in asset management fees, sending its shares up more than 6 per cent in pre-market trading.

The results are the first under new CEO Rick Wurster’s watch and could set the tone for the company after Walt Bettinger retired as chief executive at the end of 2024, after 16 years at the helm.

Schwab’s diversified business model spans brokerage services, asset management, banking and other financial solutions, and its results often reflect trends in the investment landscape.

Expectations of lower corporate taxes and deregulation under newly elected US President Donald Trump sparked a market rally that boosted Schwab’s assets under management as well as corresponding fees.

The Westlake, Texas-based company’s total client assets rose 19 per cent to US$10.1 trillion in the three months ended Dec 31.

Schwab’s asset management and administration fees, earned from managing mutual funds and exchange-traded funds, increased 22 per cent to US$1.5 billion.

Its total net revenues rose 20 per cent to US$5.3 billion in the reported quarter.

The company posted an adjusted profit of US$1.01 per share for the fourth quarter, compared with US$0.68 per share a year earlier. REUTERS

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