Retail investing company Charles Schwab posted fourth quarter earnings that surpassed analysts’ expectations. This is Schwab’s first earnings report following its $26 billion acquisition of rival TD Ameritrade.
The company’s adjusted earnings came in at 74 cents per share, beating the 71 cents per share expected by analysts polled by Refinitiv.
Revenue of $4.18 billion was also higher than the forecast $4.108 billon.
Total client assets for Schwab increased to a record $6.69 trillion as of the end of 2020, which reflects a 66% growth year-over-year – boosted by acquired TD Ameritrade assets.
Schwab added 15.77 million new clients in the fourth quarter, including 14.5 million new brokerage accounts from the TD Ameritrade merger.
The company’s daily average trades rose to 5.8 million in the fourth quarter, a record high.
Trading revenue surged +88% to $1.4 billion