Charles Schwab reported that its first quarter profits declined 29% to $218 million, or 19 cents per share, compared to a year earlier, when it earned $305 million, or 26 cents per share.
The results include a $26 million pre-tax gain relating to the repurchase of certain outstanding company debt, $14 million in pre-tax losses from mortgage- backed securities, and $59 million in pre-tax charges for severance, in order to reduce expenses.
In the quarter, Schwab attracted $25 billion in net new assets and 207,000 new brokerage accounts, for a total of 7.5 million active accounts with the company. Trading revenue also rose, by 5%.
Chairman Charles Schwab commented: In an environment that has tested the confidence of every investor, we see our role in a very clear light: to do everything we can to help each of our clients find the right path forward, and to ensure that we have a stable and steady business here to serve them.