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• Charles Schwab reported its financial results for the fourth quarter today.
• Here's what its CEO Walter W. Bettinger II said in a press release on Wednesday.
• Charles Schwab stock is currently down about 10% versus its recent high.

Charles Schwab Corporation (NYSE: SCHW) is trending slightly down in premarket on Wednesday after reporting weaker-than-expected revenue for its fiscal fourth quarter.
 

Here’s what CEO Bettinger said today

On the plus side, the multinational ended its financial year with a record $8.5 trillion worth of total client assets – a 21% increase versus last year.

2023 marked the fifth consecutive year for Charles Schwab to see its pre-tax margin on an adjusted basis above 40%. Walt Bettinger – its chief executive said in a press release today:

 

Through shifting views on trajectory of U.S. economy, persistent geopolitical unrest, and temporary disruption within regional banking sector, our “no trade-offs” value proposition continued to resonate with investors.

Wall Street currently has a consensus “overweight” rating on $SCHW that’s down nearly 10% versus its recent high at writing.
 

Charles Schwab Q4 earning snapshot

• Net income printed at $1.0 billion versus the year-ago $2.0 billion
• Per-share earnings also declined from 51 cents to 97 cents
• Adjusted EPS came in at 68 cents as per the press release
• Revenue tanked 19% on a year-over-year basis to $4.45 billion
• The consensus was of 49 cents of EPS on $4.49 billion in revenue

Other notable figures in the earnings report include an 11% decline in the balance sheet to billion. But CEO Bettinger added on Wednesday:

 

The primary objective coming into 2023 was a successful Ameritrade conversion. By the end of the year, we had transitioned approximately 90% of client assets and accounts with no significant disruptions.

TD Ameritrade switched over to Charles Schwab and so far I'm not impressed in the slightest

Does anyone else hate Schwab's dashboard?

It feels incredibly archaic and does not optimize whatsoever to be able to get in and out of trades

— Gannon Breslin (@gannonbreslin) January 16, 2024

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