July 21 (Reuters) – Brokerage firm Charles Schwab posted a record second-quarter profit on Tuesday, driven by robust trading activity and increased asset management fees.
The U.S.-Israeli war against Iran fueled volatility in the April-June quarter, forcing investors to recalibrate their portfolios to hedge against risks.
Here are some more details:
• Daily average trading volume jumped 57% to a record 11.9 million from a year earlier, while trading revenue surged 28%.
• Investors opened 1.4 million new brokerage accounts on the platform and brought $119.8 billion of core net new assets to the firm during the second quarter.
• U.S. stock markets also rallied sharply during the quarter as optimism grew over corporate earnings.
• Its asset management and administration fees, earned from managing mutual funds and exchange-traded funds, jumped 16.2% to $1.83 billion.
• Schwab provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services.
• “Our ability to do more for clients throughout their financial lives enables Schwab to deliver robust results across a range of environments,” CFO Mike Verdeschi said.
• Schwab’s net income was $2.8 billion, or $1.54 per share, in the three months ended June 30, compared with $2.13 billion, or $1.08 per share, a year earlier.
(Reporting by Pragyan Kalita in Bengaluru; Editing by Leroy Leo)
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