The Charles Schwab Corporation (NYSE:SCHW) shares are trading lower after the company reported second-quarter 2024 results. Adjusted net income declined 2% Y/Y to $1.465 billion.
Adjusted EPS fell 3% Y/Y to $0.73, beating the consensus of $0.72.
Revenue rose 1% to $4.69 billion, beating the consensus of $4.68 billion. Asset management and administration fees rose 18% Y/Y to $1.38 billion.
The bank had $252.4 billion in deposits at the end of the second quarter of 2024, down 17% Y/Y.
Net interest revenue declined 6% Y/Y to $2.158 billion in the second quarter. Clients' daily average trades totaled 5.486 million, up 4% Y/Y.
In the second quarter of FY24, core net new assets grew 17% Y/Y to $61.2 billion, pushing the total client assets to $9.41 trillion at quarter-end.
The company's new brokerage accounts increased 4% Y/Y to 35.6 million.
Walt Bettinger, Co-Chairman and CEO, said, "Client interest in our broad array of wealth solutions remained strong through June. Year-to-date enrollments are up ~30% versus the prior year period and net flows into Managed Investing solutions reached $25 billion – an increase of 56% versus the first 6 months of 2023."
Investors can gain exposure to the stock via IShares U.S. Broker-Dealers & Securities Exchanges ETF (NYSE:IAI) and Tidal ETF Trust God Bless America ETF (NYSE:YALL).
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Price Action: SCHW shares are down 7.77% at $69.23 premarket at the last check Tuesday.
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