Charles Schwab (NYSE:SCHW) delivered a strong first-quarter performance, outpacing Wall Street expectations on both earnings and revenue as rising client assets and elevated trading activity powered results. The stock climbed over 2% intra-day today following the release.
The company reported adjusted earnings of $1.04 per share, beating the $0.99 consensus. Revenue grew 18% year-over-year to a record $5.6 billion, topping estimates of $5.46 billion.
Core net new assets surged to $137.7 billion, up 44% from the prior year, as Schwab benefited from heightened investor demand amid growing market uncertainty. Total client assets increased 9% year-over-year to $9.93 trillion.
Net interest margin widened by 20 basis points to 2.53%, while daily average trades rose 17% quarter-over-quarter, reflecting a pickup in market volatility.
Schwab continued to strengthen its balance sheet, reducing supplemental bank funding by $11.8 billion to $38.1 billion by the end of March. The company also returned capital to shareholders, boosting its quarterly dividend by 8% to $0.27 per share and executing $1.5 billion in stock buybacks during the period.