Charles Schwab (SCHW) said Tuesday that profits soared 32% from a year ago, fueled by record client trading activity.
Schwab reported net income of $2.8 billion, or $1.54 per share
Total net revenue increased 21% to $7.1 billion, driven in part by a 28% rise in trading revenue. The company’s report exceeded analyst forecasts for profits and revenue. “During the second quarter, strong client engagement helped drive year-over-year revenue growth,” Schwab CEO Rick Wurster said in a earnings release statement. Sharp price swings, heavy stock rotation, and rising investor balances helped stock trading desks deliver a blowout second quarter.
The frenzy extended to Schwab. Customer margin balances, or the amount clients borrowed from Schwab to buy securities, rose 30% from the previous quarter to $165 billion. The platform’s daily average number of trades climbed to a record 11.9 million. “Our ability to do more for clients throughout their financial lives enables Schwab to deliver robust results across a range of environments,” Wurster added.