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SCHWAB REPORTS RECORD SECOND-QUARTER AND FIRST-HALF RESULTS

 SAN FRANCISCO, July 14 /PRNewswire/ -- The Charles Schwab Corp. (NYSE: SCH) reported net income of $31.6 million, or 53 cents per share, for the quarter ended June 30, 1993, compared with net income of $18.5 million, or 31 cents per share, for the same period in 1992. For the first half of 1993, the company earned $67.0 million, or $1.13 per share, on net revenues of $469 million, compared with net income of $48.2 million, or 81 cents per share, during the same period last year.
 CHARLES SCHWAB CORP.
 Three Months Six Months
 Ended June 30: 1993 1992 Pct. 1993 1992 Pct.
 Financial Highlights Change Change
 Net revenues
 (in millions) $ 232 $ 177 31 pct. $ 469 $ 397 18 pct.
 Net income per
 share (A) $0.53 $0.31 71 pct. $1.13 $0.81 40 pct.
 (A) Reflects three-for-two stock split declared March 25, 1993, and distributed June 1, 1993.
 Net revenues for 1993's second quarter increased 31 percent over 1992's second quarter to $232 million. Commission revenues were $136 million, up 34 percent over last year's comparable period. Mutual fund service fees increased 53 percent to $23.1 million, primarily reflecting growth in Schwab's proprietary mutual fund balances and its no transaction fee mutual fund service introduced last July.
 Quarterly expenses excluding interest were up 26 percent from the comparable period in 1992 as customer assets at Schwab increased 46 percent over the year-ago level and trading activity grew 56 percent, compared to 1992's second quarter. The higher expenses were prmarily related to continuing growth in new staff, branch offices, marketing and product development to support the company's expansion, offset somewhat by a lower effective income tax rate.
 "The company achieved record second quarter results in earnings, net revenues, new customer assets and new customer accounts," Chairman Charles R. Schwab said. "Assets in client accounts have increased by $13.6 billion since the beginning of the year, totaling a record $79.2 billion at June 30, 1993. During the first half of 1993, Schwab opened a record 358,000 new accounts, 30 percent more than those added during the same period last year. Schwab's earnings during 1993's first half exceeded both 1991's and 1990's full-year results."
 During 1993, the company completed a three-for-two stock split, increased the quarterly cash dividend 25 percent, opened 10 new offices, released Equalizer(R) version 2.4 (Schwab's latest PC-based investment software), and introduced SchwabLink(TM) 2000, a new generation of on-line software designed for financial advisors. Customer assets represented by financial advisors have grown 70 percent since the first half of 1992 to $17.3 billion at June 30, 1993.
 "With the rapid expansion of our customer base and assets, I believe it is essential to continue to develop the additional capacity to support anticipated growth in our business in the coming year," Schwab emphasized. "As a part of this program, we have established a new, state-of-the-art data center in Phoenix and are adding staff for a fourth regional customer telephone service center. We have also continued to accelerate our branch expansion plans with the expectation that we will reach the 200-mark during the second half of 1993."
 "Following this strong period in the market, it would be typical to see retail trading soften in the third quarter, which would result in lower short-term operating margins than those levels achieved in the first half," Schwab noted. "At the current rate of growth in customer assets and accounts, however, we expect to generate better financial results in 1993's third quarter than last year's third quarter," Schwab said.
 "As we enter the second half of 1993, we are also continuing to enhance the service provided by our Mutual Fund Marketplace(R) and Schwab's equity and bond fund business, which together reached $18.1 billion in customer assets at June 30, 1993, up 114 percent over this time a year ago," the chairman said. "Last July, we eliminated brokerage fees on about 80 mutual funds in eight fund families and, during just one year, we attracted over $4.0 billion in customer assets. On July 12, 1993, we doubled the size of this offering to over 200 mutual funds in 25 fund families -- all available with a single phone call, one monthly statement, 24-hour service, and almost 200 branch offices -- without sales fees or commissions." For more information and a prospectus, call 800-266-5623.
 The Charles Schwab Corp., through its principal operating subsidiary, Charles Schwab & Co. Inc., is a leading provider of discount brokerage, specialized services for independent financial advisors, no- fee IRAs, and no transaction fee mutual funds. Schwab serves 2.3 million active customers with $79.2 billion in assets.
 CHARLES SCHWAB CORP.
 Consolidated Statement of Income
 (In millions, except per-share amounts)
 Three Months Six Months
 Ended June 30: 1993 1992 1993 1992
 Revenues
 Commissions $135.6 $101.2 $279.1 $238.5
 Interest 60.6 66.0 120.3 132.8
 Principal transactions 39.3 30.2 79.8 71.4
 Mutual fund service fees 23.1 15.1 43.7 28.5
 Other 6.0 6.6 11.7 12.9
 Total revenues 264.6 219.1 534.6 484.1
 Interest expense 32.2 42.3 65.9 87.4
 Net revenues 232.4 176.8 468.7 396.7
 Expenses Excluding Interest
 Compensation and benefits 93.4 72.1 188.8 162.9
 Communications 22.9 19.3 45.0 38.6
 Occupancy and equipment 18.1 16.4 35.1 31.5
 Depreciation and
 amortization 10.7 9.0 20.2 22.1
 Advertising and market
 development 10.4 9.1 19.8 17.2
 Commissions, clearance
 and floor brokerage 10.5 7.5 21.2 17.1
 Professional services 4.0 3.5 6.8 6.5
 Other 10.4 6.9 18.4 14.9
 Total expenses excluding
 interest 180.4 143.8 355.3 310.8
 Income before taxes on
 income 52.0 33.0 113.4 85.9
 Taxes on income 20.4 14.5 46.4 37.7
 Net income $ 31.6 $ 18.5 $ 67.0 $ 48.2
 Weighted average number of
 common and common
 equivalent shares (A) 59.3 59.1 59.1 59.1
 Earnings per common
 equivalent share (A) $ 0.53 $ 0.31 $ 1.13 $ 0.81
 Dividends per common
 share $0.050 $0.040 $0.090 $0.067
 (A) Reflects three-for-two common stock split declared March 25, 1993, and distributed June 1, 1993.
 -0- 7/14/93
 /CONTACT: Hugo W. Quackenbush, cfa, or Mark C. Thompson, both of Charles Schwab, 415-627-7810/
 (SCH)


CO: Charles Schwab Corp. ST: California IN: FIN SU: ERN

GT-TM -- SF005 -- 1282 07/14/93 10:11 EDT
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