Schwab Trading Revenue Falls On Price Cuts

By Austen HuffordFeaturesDow Jones Newswires

Charles Schwab Corp. reported quarterly earnings for its fourth quarter and 2017 fiscal year Wednesday. Here's what you need to know:

Profit: Charles Schwab reported net income of $597 million, or 41 cents a share, up from $522 million, or 36 cents a share. Analysts had expected 41 cents a share in earnings.

Continue Reading Below

Revenue: Revenue rose 14% to $2.24 billion, above the $2.23 billion analysts polled by Thomson Reuters had expected.

New accounts: In 2017, Charles Schwab said households new to Schwab's Retail business rose 49% versus the prior year with 54% of these households being 40 or younger.

Tax hit: A one-time charge of about $46 million related to the recent tax law hurt earnings per share by 3 cents.

Price cut: Charles Schwab last February cut equity and options trade commissions. As a result, trading revenue fell 24% to $154 million even as client daily average trades rose 10%. The average revenue per revenue trade fell 34%.

(END) Dow Jones Newswires

January 17, 2018 15:38 ET (20:38 GMT)