Schwab Swings to Profit as Revenue Rises 14%
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Charles Schwab Corp., the largest U.S. discount brokerage, reported a third-quarter profit Monday, reversing a year-earlier loss that included large restructuring charges.
Income was helped by an increase in revenue from asset management and administration fees, as well as higher interest revenue, while expenses fell.
San Francisco-based Schwab reported profit of $207 million, or 16 cents a share, contrasted with a loss of $41 million, or 3 cents, a year earlier, when results were hit by charges related to the sale of its capital markets business and a cost-cutting drive.
Revenue rose 14% to $1.14 billion. Expenses fell 13% to $809 million.
Earnings beat analysts’ expectations by a penny, although analysts calculated that Schwab had benefited modestly from a lower-than-expected tax rate and a reversal of some previous restructuring charges.
Schwab’s shares rose 21 cents to $13.34.
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