In line with its own worst-case-scenario forecast, Charles Schwab Corp. reported a significant decline in first-quarter earnings due in part to a 19% decline in trading revenue. The San Francisco-based discount brokerage company announced Thursday that profits declined 45% to $119 million, or 10 cents per share, from $218 million, or 19 cents per share, a year earlier. Revenue declined 12% to $978 million.
Analysts had expected earnings of 11 cents on $982 million of revenue, according to Thomson Reuters, although Schwab warned last month that earnings could be as low as 10 cents per share as trading volume has declined. During the first quarter, Schwab’s average daily trading declined 6% from a year earlier.