Schwab (SCHW) Q3 Earnings

Schwab (SCHW) CEO Wallt Bettinger said the company sustained it’s mid single digits asset growth rate

“Schwab’s third quarter results reflect the combined power of our strategy and scale – we served more clients than ever while delivering record financial performance. Our range of full-service investment capabilities continued to attract a broad spectrum of investors and helped core net new assets total $30.0 billion in the third quarter, sustaining a solid 5% annualized organic growth rate. We ended the quarter serving 10.0 million brokerage accounts and 1.1 million bank accounts.”

Their online only robe-advisor investment offering crossed the $10 billion dollars in AUM threshold 

“Client assets enrolled in Intelligent Portfolios surpassed the $10 billion mark at month-end September, just 19 months after launching in March 2015. This digital advisory program’s combination of sophisticated, ongoing portfolio management – with no advisory fee charged and access to live support – has attracted investors of all ages and wealth levels, the majority of whom are formerly self-directed. Roughly a quarter of the assets enrolled in Intelligent Portfolios are new to Schwab, and that proportion is growing steadily.”

Schwab (SCHW) CFO Joe Martinetto said the company set a quarterly record for firm profit margins

“Schwab posted its fifth consecutive quarter of record revenues for the period ending in September, as well as a record pre-tax profit margin of 41.5%. Our prior peak margin was set in the third quarter of 2008. We have rebuilt our profitability from post-financial crisis lows by driving client asset and revenue growth with our ‘Through Clients’ Eyes’ strategy, and applying expense discipline to maintain an appropriate balance between near- term profitability and reinvestment for growth.”