The Charles Schwab Corporation announced on Tuesday that fourth quarter revenues soared 14% year-over-year and December net new assets grew to more than $11 billion, the highest level in 23 months.
Nonetheless, the company’s net income was $119 million for the fourth quarter of 2010, a 27% decline from $164 million in the fourth quarter of 2009, due to the inclusion of charges relating to the Schwab YieldPlus Fund. Without these charges its fourth quarter net income was $218 million, up 33% over the previous year.
Schwab’s net income for the twelve months ended December 31, 2010 was $454 million, a drop of 42% from the year-earlier period. Without the charges relating to YieldPlus and other previously disclosed matters, the company’s 2010 net income totaled $775 million.
“I’m proud of the progress we’ve made in building a model of full-service investing and brokerage that goes beyond serving the privileged few to ensure that high-quality help and advice is available to any investor seeking to build a better financial future,” said Chairman Charles Schwab, in a statement.
Schwab reported that it currently serves a record $1.57 trillion in client assets, which represents an 8% compound annual growth rate since 2000.
“With the worst of the economic crisis behind us, our focus shifted in 2010 to increasing our investment to drive growth, while at the same time improving profitability regardless of any recovery in short-term interest rates,” said CEO Walt Bettinger in a statement. “New brokerage account openings rose by 5% in 2010 and exceeded 750,000 for the fourth consecutive year, net new assets totaled $78.1 billion excluding significant one-time flows, down from 2009 due to the environment, but once again exceeding the pace reported by any other firm, and total client assets were up 11% year-over-year.”