The Charles Schwab Corporation (NYSE:SCHW) shares gained sharply, after it reported net income for the fourth quarter totaling $1.8 billion, or $.94 earnings per share. Excluding $177 million of pre-tax transaction-related and restructuring costs, adjusted net income and earnings per share equaled $2.0 billion and $1.01, respectively.
According to CEO Rick Wurster, “In the fourth quarter of 2024, we added $115 billion in core net new assets, bringing asset gathering for the year to $367 billion – a 4.3% annualized growth rate. This 20% annual increase in net new assets reflects our ongoing progress following the Ameritrade integration.”
On client growth, he continued, “Strong client engagement, increased margin utilization, encouraging client cash trends, and record net inflows into our Managed Investing Solutions helped lift 4Q24 revenue to $5.3 billion, – an increase of 20% year-over-year.”
On the profitability front, CFO Mike Verdeschi expounded, “The combination of 20% revenue growth and disciplined expense management resulted in a 4Q24 pre-tax profit margin of 43.3% – 46.6% adjusted – as well as quarterly GAAP and adjusted earnings per share growth of 84% and 49%, respectively.”
Schwab was awarded America’s Best Customer Service 2025 by Newsweek, while Schwab Mobile recognized as the #1 mobile investing app by Corporate Insight.
SCHW shares hiked $5.34, or 7%, to $81.77.
