Charles Schwab 1Q Profit Declines on Lower Fees

Charles Schwab (NASDAQ:SCHW) revealed on Monday a 20% decline in first-quarter profit on weaker asset management fees, however revenue ticked higher on new client enrollments.

The San Francisco-based online broker reported net income of $195 million, or 15 cents a share, compared with a year-earlier profit of $243 million, or 20 cents.

The latest results matched average analyst estimates in a Thomson Reuters poll.

Revenue for the three months ended March 31 was $1.19 billion, down from $1.21 billion a year ago, narrowly beating the Street’s view of $1.18 billion.

Revenue was boosted by the company’s highest client metrics since 2008. Clients opened 240,000 new brokerage accounts and new enrollments in its retail advisory offerings totaled $2.7 billion.

The company, one of the largest brokers in the nation, finished the quarter serving 8.6 million active brokerage accounts and 801,000 banking accounts.

“The improved first quarter environment and our ongoing success in building stronger client relationships helped revenues grow 7% sequentially, with increases in all three major categories,” Charles Schwab CEO Walt Bettinger said in a statement.