Charles Schwab (SCHW) Tops Q2 EPS by 1c

Charles Schwab (NYSE: SCHW) reported Q2 EPS of $0.25, $0.01 better than the analyst estimate of $0.24. Revenue for the quarter came in at $1.57 billion versus the consensus estimate of $1.54 billion.

Business highlights for the second quarter (data as of quarter-end unless otherwise noted):

Investor Services

• New retail brokerage accounts for the quarter totaled approximately 176,000, up 19% year-over-year; total accounts were 6.7 million as of June 30, 2015, up 2% year-over-year.
• Held financial planning conversations with approximately 29,000 clients. Approximately 54,000 planning conversations have been held year-to-date.
• Launched Schwab’s Apple Watch™ app, giving clients at-a-glance views of market headlines and personal watchlists, access to stock quotes, and the ability to initiate equity or options trades for quick completion on their iPhone.
• Launched Apple® Touch ID™ capability for the Schwab mobile app, allowing clients to log in to their accounts quickly and securely using their fingerprint on any Apple Touch ID-enabled device.

Advisor Services

• Launched Institutional Intelligent Portfolios, an automated investment management platform for RIAs; firms can create their own set of portfolios choosing from over 450 ETFs across 28 asset classes and all major fund families.
• Held the annual EXPLORE® conference for the company’s top independent advisor clients. Schwab leadership discussed Institutional Intelligent Portfolios, RIA industry advocacy, and the Schwab Executive Leadership Program for developing next-generation RIA firm management.

Products and Infrastructure

• For Charles Schwab Bank:
  • Balance sheet assets = $122.4 billion, up 18% year-over-year.
  • Outstanding mortgage and home equity loans = $11.1 billion, comparable to a year ago.
  • First mortgage originations through its loan program during the quarter = $1.1 billion.
  • Pledged Asset Line® balances = $2.9 billion, up 61% year-over-year.
  • Delinquency, nonaccrual, and loss reserve ratios for Schwab Bank’s loan portfolio = 0.19%, 0.22% and 0.26%, respectively, at month-end June.
  • Schwab Bank High Yield Investor Checking® accounts = 814,000, with $12.2 billion in balances.
• Client assets managed by Windhaven® totaled $14.9 billion, down 22% from the second quarter of 2014.
• Client assets managed by ThomasPartners® totaled $7.1 billion, up 25% from the second quarter of 2014.
• Client assets managed by Intelligent Portfolios (Schwab Intelligent Portfolios, launched in March 2015, and Institutional Intelligent Portfolios, launched in June 2015) totaled $3.0 billion, up $2.2 billion from the first quarter of 2015.
• Expanded Schwab ETF OneSource to offer four more ETFs; investors can now trade 202 ETFs from 13 providers covering 66 Morningstar Categories, including multi-currency, for $0 online trade commissions.

For earnings history and earnings-related data on Charles Schwab (SCHW) click here.

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