SAN FRANCISCO (AP) - Charles Schwab Corp.'s first-quarter profit rose 12 percent to match analyst expectations as the discount stock brokerage avoided most of the shaky investments that have tripped up much of the financial services industry.
The San Francisco-based company said Tuesday that it earned $305 million, or 26 cents per share during the first three months of the year. That compared with net income of $273 million, or 22 cents per share, in last year's first quarter.
The 2007 results included earnings from a wealth management subsidiary, U.S. Trust, that Schwab has since sold.
Revenue climbed 13 percent to $1.31 billion from $1.15 billion. Analysts, on average, had forecast expected $1.32 billion, according to Thomson Financial.
Schwab benefited from an influx of new business despite the stock market's recent turbulence. The brokerage opened 246,000 new accounts during the quarter, the most in seven years.
The company's banking subsidiary also enjoyed a strong quarter, with its total accounts more than doubling from a year ago to 318,000.
All told, Schwab's customers poured $41.3 billion into their accounts during the quarter, leaving total investments at the brokerage at $1.39 trillion through March. That was down 4 percent from $1.45 trillion in December, partly because the tumbling stock market took a bite out of customers' investment portfolios.
"In the face of a tough economic environment, our clients have remained actively engaged with us in managing their investments," said Chairman and CEO Charles Schwab.
Schwab shares surged 98 cents, more than 5 percent, to $19.29 in early trading. |