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Industry Spotlight > Clearing and Custodial Firms

Schwab Reports Mixed Results: Q2 Earnings

By Janet Levaux

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What You Need to Know

  • The second-quarter results include those of TD Ameritrade.
  • Adjusted earnings missed analysts' expectations by a penny.
  • Schwab Advisor Services AUM rose 82% from a year ago.

Charles Schwab’s latest profits —  which include those of TD Ameritrade — rose nearly 90% year over year to $1.27 billion in the second quarter from $671 million. Earnings per share grew almost 25% to $0.59 from $0.48. 

Adjusted earnings, excluding one-time items, of $0.70 missed analysts’ expectations by a penny, according to FactSet. 

Revenue was roughly $4.53 billion, though, ahead of an anticipated $4.46 billion, and up 85% from $2.45 billion a year ago. 

Schwab says that expenses in the second quarter were close to $300 million and totaled about $570 million for the first half of 2021. As it disclosed early this month, the firm took a $200 million regulatory charge related to the Securities and Exchange Commission probe of its robo-advisor platform, representing $0.10 per share, in the second quarter.

Assets under management in its RIA channel, Advisor Services, were nearly $1.9 trillion as of June 30, up 82% from last year. Total assets, including those of DIY investors, were up 84% to almost $7.6 trillion.

(Photo: Christopher Dilts/Bloomberg)

Janet Levaux

@Think_JanetL

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