Charles Schwab Corp. shares rose after second-quarter earnings beat expectations. The company delivered a strong performance, fueled by a new record high in client assets and a surge in trading revenue.
Schwab reported adjusted earnings of $1.14 per share, while total client assets rose 14% year-over-year to $10.76 trillion. Revenue from client transactions rose 23% to $952 million.
“Retail investors and independent investment advisors continued to view Schwab as a trusted partner, and more than 1 million new brokerage accounts were opened,” said company CEO Rick Wurster.
Wurster, who took over as CEO at the beginning of the year, stated on an earnings call with analysts that the company is continuing its work in the digital asset space. He stated that Schwab will offer spot trading for Bitcoin and Ethereum, which he said would be a significant growth area. He also stated that the company plans to offer a stablecoin and is in discussions with major banks to form a consortium to this end, while also evaluating its own independent options.
*This is not investment advice.