Net interest revenue soared 41% on larger client cash sweep balances, as well as the cumulative effect of the Fed’s rate normalization. Trading revenue increased by 17% on higher clients trading activity.
However, asset management and administration fees decreased 6% due to lower money market fund revenue as a result of transfers to bank sweep, client asset allocation choices, and its 2017 fee reductions.
Clients opened 369,000 brokerage accounts in the third quarter, bringing its year-to-date new accounts to 1.2 million, which is the highest nine-month total in the company’s history. Charles Schwab generated $172.5 billion in core net new assets year-to-date, which is also surpassing all full-year totals prior to 2017.
Daily average trades reached 683,000, consistent with the second quarter and a third-quarter record. Assets receiving ongoing advice marked a new high of $1.85 trillion at September 30, 2018, up 15% from last year. Total client assets grew 12% year-over-year, ending the quarter at a record $3.56 trillion.
Shares of Charles Schwab ended Friday’s regular session up 1.83% at $49.01 on the NYSE. The stock has risen over 9% in the past year, while it has fallen more than 4% in the year so far.