Despite flat second-quarter results, Charles Schwab Corp.’s top executive remained upbeat about the remainder of 2010.
Charles Schwab, the company’s chairman, said in a press release Friday that the firm’s financial performance “rebounded strongly” during the quarter. He said he expects economic conditions to improve.
“The economy is starting to find its footing, and short term interest rates have either stabilized or improved,” he said. “In addition, despite ongoing equity market volatility, valuations continue to reflect a recovery from the lows of the financial crisis.”
Earnings were flat at $205 million, while per-share profit fell a penny to 17 cents. Analysts' expected the first to earn 15 cents, according to Thomson Reuters.
Clients' daily average revenue trade increased 0.6% as average revenue per trade declined 12%. This may have been due to the company’s decision in January to cut fees on trades.
Schwab [SCHW] opened 206,000 brokerage accounts in the quarter, up 4.6% to 7.9 million.
“Our focus on building stronger client relationships has not wavered, and we believe that today, more than ever, investors are well served by the kinds of products, services and financial guidance we provide,” Schwab said. “We’re optimistic that all these factors will help us improve on our second quarter financial performance during the remainder of 2010.”