Charles Schwab Corp. reported earnings that beat estimates as retail investors continue to pile into the stock market.
Schwab reported $1.69 in adjusted diluted earnings per share for the third quarter, or $3.02 billion in net income. Those figures beat the average analyst estimates in a Bloomberg survey, with forecasts of $1.65 a share and adjusted net income of $2.87 billion, respectively.
“As investing plays an increasingly central role in people’s financial lives, clients continue to turn to Schwab for our broad set of wealth, trading and banking capabilities,” Chief Executive Officer Rick Wurster said in a statement Thursday.
Schwab, like many retail-investment firms, has grappled with the rise of artificial intelligence in the consumer-finance space. The technology has the power to more easily give consumers more financial information, but it could also disrupt traditional adviser services offered by the likes of Schwab and its competitors. One way the firm has responded is by launching an AI-powered assistant, called Charley, to help customers interact with the firm.
See more: AI Made Your Service Faster, but How Do You Get to “Better”?
Total net new assets were $192.4 billion in the period, more than the $175.1 billion expected by analysts. Total client assets grew 15% to $13.33 trillion, up from $11.59 trillion a year earlier while slightly missing analysts’ estimates.
Schwab shares slipped 2.9% at 7:43 a.m. in early New York trading, and were down 3.1% this year through Wednesday.
The Westlake, Texas-based firm recently listed its shares on the Texas Stock Exchange along with its primary listing venue, the New York Stock Exchange.
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