Charles Schwab 4Q Profit Rose, Boosted by Higher Interest Income

By Jeffrey T. Lewis

The Charles Schwab Corp. said Wednesday its profit rose in the fourth quarter as higher interest rates boosted net interest income.

The Westlake, Texas-based financial-services company reported net income rose 25% from a year earlier to $2 billion. Earnings per share reached 97 cents from 76 cents and adjusted earnings per share increased to $1.07 from 86 cents. Net revenue rose 17% to $5.5 billion.

The profit figure fell slightly short of the market consensus, while net income slightly outperformed. The median forecast compiled by FactSet was for revenue of $5.6 billion and for net income of $1.9 billion. Adjusted earnings per share also fell short of the market consensus of $1.09.

The company's interest revenue rose to $3.8 billion from $2.3 billion in the same quarter a year earlier, while the net interest expense increased to $812 million from $128 million, leaving net interest revenue of $3 billion, compared with $2.1 billion in the fourth quarter of 2021. Trading revenue declined to $895 million from $1 billion.

Write to Jeffrey T. Lewis at [e-mail]

(END) Dow Jones Newswires

01-18-23 0923ET