Charles Schwab reported its first-quarter income grew 58 percent from a year ago, partly propelled by growth in client assets, brokerage accounts and trading activity.
The discount broker also revealed that the percent of custodied assets serviced by advisors increased, with about $974 billion under the guidance of independent advisors—up 16 percent from a year ago.
Another $159 billion was serviced by Schwab’s advisor solutions unit, up 17 percent from last year, meaning about half of the company’s client assets were managed under the guidance of financial advisors, according to Schwab.
“Higher levels of client trading activity, balances in fee-based products and services, and cash held at Schwab as part of investing relationships all contributed to the 15 percent year-over-year increase in revenue we achieved for the first quarter,” Schwab CEO Walt Bettinger said in a prepared statement.
The company reported first-quarter net income of $326 million, up 58 percent from $206 million a year earlier and up 2 percent from $319 million in the fourth quarter of 2013.
The company also said it generated $34.2 billion in net new assets and 258,000 additional brokerage accounts, which represents a 6 percent annual increase for each. The company’s client assets now stand at $2.31 trillion, an all-time high.
The firm executed more than 550,000 trades per day during the quarter, the largest volume in the company's history, Bettinger said. Schwab ended the quarter with 9.2 million active brokerage accounts and 933,000 banking accounts, up 4 percent and 5 percent from a year ago, respectively.
The company's stock price jumped 3.2 percent today, to close at $26.11. The shares are nearly 63 percent above their 52-week low on May 2, but are down more than 10 percent since hitting a 52-week high on March 21.