Although Schwab attracted $2.7 billion in net new assets last month, total assets of $833.5 billion remained flat from a year ago. That was an increase of 4% from April 2003.
"The improved securities market environment weve seen in recent weeks has continued thus far into June," Schwab CEO David S. Pottruck said. While saying he could not be sure if the recent rally would continue through the rest of the year and that Schwab would continue to reduce expenses, Pottruck said he expects the firms second quarter performance to "show significant improvement" over the prior quarter.
For the first quarter, Schwab reported revenues of $900 million for the first quarter, 14% less than a year earlier, as profits fell 24%, to $71 million. It was the firms weakest quarter in four years, and a period when its trading volume declined 22% from the year earlier. Since the beginning of 2001, the firm has cut its head count 37.5% and is currently reducing expenses by $40 million a quarter.
