Charles Schwab (NYSE:SCHW) saw its stock climb about 3% in pre-market trading on Thursday after reporting third-quarter results that surpassed Wall Street expectations on both earnings and revenue.
The brokerage firm posted earnings per share of $1.31, topping consensus estimates of $1.23. Revenue came in at $6.14 billion, up 27% year over year, beating forecasts of $5.97 billion.
“Strengthening organic growth trends, increasing adoption of wealth solutions, and favorable macroeconomic tailwinds powered another quarter of record revenue and earnings per share,” said Charles Schwab President and CEO Rick Wurster.
Core net new assets reached $137.5 billion during the quarter, a 44% increase from the same period a year earlier. Total client assets grew 17% YoY to a record $11.59 trillion.
The company also reported improved profitability metrics, with annualized return on average common equity rising to 21%, up from 14% last year. Annualized return on tangible common equity increased to 38%, compared to 31% a year ago.
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