Charles Schwab Corp. and TD Ameritrade both reported record asset levels and revenues in the fourth quarter, helped by favorable markets and higher interest rates.
Both companies also continue to build managed solutions for their retail clients.
In fact, TD Ameritrade is rolling out a new brand for its managed accounts under the TD Ameritrade Investment Management name, and chief executive Tim Hockey said the firm is even considering developing proprietary products.
Meanwhile, the two big discount and custody firms rang up some record financial results.
Schwab on Wednesday said full-year 2016 revenues grew 17 percent compared to 2015, to $7.5 billion, and net income rose 31 percent to $1.9 billion—both records.
Net income for the fourth quarter of 2016 was a record $522 million, up four percent from the prior quarter and 25 percent from a year ago.
Chief financial officer Joe Martinetto attributed the growth to “record levels of net interest revenue and asset management and administration fees.”
Total client assets were up 11 percent to $2.78 trillion at year-end, another record.
Independent RIAs who custody at Schwab’s Advisor Services unit brought in $67.1 billion in net new assets last year, up 21 percent. Schwab’s direct retail business saw a 10 percent rise in net new assets, to $58.4 billion.
Advisor Services at year-end held $1.284 trillion in assets, or 46 percent of the total client assets at Schwab.