Charles Schwab has announced that for the quarter ended Dec. 31, 2005, the company's net income was $187 million, which is impressive when compared to the $53 million for the fourth quarter of 2004. For the year ended Dec. 31, the company's net income was a whopping $725 million, compared with the net income of $286 million in 2004.
"Thoughout 2005, we have focused on restoring our value proposition, reconnecting with our clients and improving our financial performance. During the year, we completed a series of price reductions representing an investment in our clients of more than $375 million annually. We also made great progress in building stronger client relationships. In December alone, clients brought $9 billion in net new assets to the company - the seventh straight month of net new assets in excess of $6 billion," said Chairman and CEO Charles Schwab.
"For 2005, net new assets totaled $75 billion, 49% higher than in 2004. Total client assets reached a record $1.199 trillion by year-end, up 11% from year-end 2004. We turned this success with clients into the best earnings year in our history, with net income and earnings per share surpassing the records set back in 2000. I am honestly proud of the way the Schwab team pulled together in 2005 and delivered such outstanding performance," Schwab continued.
"For 2005, we exceeded all of our primary financial objectives, which included mid single-digit percentage revenue growth, a pre-tax profit margin of at least 15%," added CFO Christopher Dodds. "As a result of our success with clients and disciplined expense management, we achieved 6% revenue growth, a 26.5% pre-tax margin, and earnings per share of $0.55 for 2005."