Printer Friendly

SCHWAB REPORTS SECOND QUARTER RESULTS

 SCHWAB REPORTS SECOND QUARTER RESULTS
 SAN FRANCISCO, July 16 /PRNewswire/ -- The Charles Schwab Corp.


(NYSE: SCH) reported net income of $18.5 million, or $.47 per share, for the quarter ended June 30, 1992, compared with net income of $9.5 million, or $.25 per share, for the second quarter in 1991. For the first half of 1992, the company earned $48.2 million, or $1.22 per share, on net revenues of $396.7 million, compared with net income of $20.1 million, or $.52 per share, during the same period last year.
 THE CHARLES SCHWAB CORP.
 Financial Highlights
 (in millions, except per share amounts)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 Total revenues $219.1 $183.6 $484.1 $369.8
 Net revenues 176.8 128.8 396.7 254.9
 Expenses excluding interest 143.8 112.3 310.8 220.0
 Income before taxes 33.0 16.5 85.9 34.9
 Net income 18.5 9.5 48.2 20.1
 Net income per share .47 .25 1.22 .52
 Weighted average
 shares outstanding 39.4 39.0 39.4 38.9
 Net revenues for 1992's second quarter increased 37 percent over 1991's second quarter to $176.8 million. Commission revenues were $101.2 million, up 19 percent over the second quarter of last year. Principal transaction revenues increased primarily due to the contribution of Mayer & Schweitzer Inc. (M&S), a market maker in over- the-counter securities that the company acquired in July 1991.
 Expenses excluding interest were $143.8 million for the second quarter of 1992, up 28 percent from 1991's level. The increase resulted from increased expenditures to support the company's technology and marketing programs, branch office and customer telephone service center expansion, and product development, as well as the addition of M&S operating expenses.
 Chairman Charles R. Schwab said, "We continued to see record growth in new client accounts and assets during 1992's first half." The company opened 275,000 new customer accounts during the first half of 1992 and customer assets increased to a record $54 billion by June 30, 1992, up 43 percent from a year ago.
 "While retail market volume continued to slow from the first quarter's record pace, trading volume by Schwab clients was stronger than a year ago," he added. Second quarter 1992 average daily trade volume for Charles Schwab & Co. Inc. was 21,900 versus 17,900 for the same period last year.
 "So far in 1992, the company has opened seven branch offices, formed a new Trust Company subsidiary, and introduced the industry's first dividend reinvestment service available on all domestic stocks, including over 3,500 exchange-listed and NASDAQ stocks. The company also introduced a no-annual-fee-IRA account, which has contributed to customer asset and account growth."
 The company's board of directors declared an increase in the quarterly per share cash dividend from $.04 to $.06 during the first half of the year.
 On July 15, the board appointed Lawrence J. Stupski to the additional post of vice chairman of The Charles Schwab Corp. Stupski continues as chief operating officer and Mr. Schwab remains chairman and chief executive officer of the company. David S. Pottruck, president of the company's principal operating subsidiary, was named chief executive officer of this subsidiary and president of the parent company.
 The Charles Schwab Corp., through its principal operating subsidiary, Charles Schwab & Co. Inc., provides brokerage and related investment services to more than 1.8 million active investor accounts through 165 offices nationwide.
 THE CHARLES SCHWAB CORP.
 Consolidated Statement of Income
 (In millions, except per share amounts)
 Three Months Six Months
 Ended Ended
 June 30, June 30,
 1992 1991 1992 1991
 Revenues
 Commissions $101.2 $85.3 $238.5 $170.1
 Interest 66.0 75.2 132.8 154.6
 Principal transactions 30.2 1.1 71.4 2.1
 Mutual fund service fees 15.1 13.6 28.5 27.4
 Other 6.6 8.4 12.9 15.6
 Total revenues 219.1 183.6 484.1 369.8
 Interest expense 42.3 54.8 87.4 114.9
 Net revenues 176.8 128.8 396.7 254.9
 Expenses Excluding Interest
 Compensation and benefits 72.1 53.2 162.9 105.8
 Communications 19.3 14.4 38.6 26.4
 Depreciation and amortization 9.0 12.7 22.1 25.6
 Occupancy and equipment 16.4 12.2 31.5 23.9
 Advertising and market development 9.1 5.8 17.2 11.0
 Commissions, clearance and
 floor brokerage 7.5 4.0 17.1 7.5
 Professional services 3.5 3.0 6.5 6.8
 Other 6.9 7.0 14.9 13.0
 Total expenses excluding interest 143.8 112.3 310.8 220.0
 Income before taxes on income 33.0 16.5 85.9 34.9
 Taxes on income 14.5 7.0 37.7 14.8
 Net income $18.5 $9.5 $48.2 $20.1
 Weighted average number of common
 and common equivalent shares 39.4 39.0 39.4 38.9
 Net income per share $.47 $.25 $1.22 $.52
 Dividends declared per share $.060 $.027 $.100 $.054
 Certain 1991 revenues and expenses have been reclassified to conform
 with the 1992 presentation.
 THE CHARLES SCHWAB CORP.
 Selected Statistical Information
 Three Months Six Months
 Ended Ended
 June 30, June 30,
 1992 1991 1992 1991
 Operating Statistics(A)
 Average daily trading volume 21,900 17,900 24,900 18,400
 Total number of revenue trades
 (in thousands) 1,377 1,144 3,131 2,298
 Average commission per agency
 trade $74.05 $75.13 $76.63 $74.53
 Number of customer accounts that
 traded (in thousands) 458 368 735 550
 Customer accounts opened
 during the period
 (in thousands) 133 100 275 197
 As of
 June 30
 1992 1991
 Financial condition
 Total assets (in billions) $5.3 $4.6
 Stockholders' equity (in millions) $237 $170
 Book value per common share $6.17 $4.42
 Customer Statistics(A)
 Assets in customer accounts (in billions)
 Cash and equivalents:
 -- Schwab money market funds $9.5 $7.8
 -- Schwab One(R) cash balances 4.1 3.7
 -- Other cash equivalents .4 .4
 Net securities:
 -- Schwab 1000 Fund(TM) .3 .1
 -- Schwab bond funds .2 --
 -- Mutual Fund Marketplace(R) (B) 7.8 4.1
 -- Fixed income securities
 (excludes mutual funds) 7.2 5.4
 -- Equity and other securities
 (excludes mutual funds) 26.5 17.5
 -- Margin loans outstanding (1.7) (1.0)
 Total Assets in customer accounts $54.3 $38.0
 (A) Statistics presented are for Charles Schwab & Co. Inc.
 (Schwab); operations of other subsidiaries are excluded.
 (B) Excludes money market funds and all of Schwab's proprietary
 money market, equity and bond mutual funds. Balances include
 equity funds of $4.9 billion and fixed income funds of
 $2.9 billion at June 30, 1992, and $2.9 billion, and
 $1.2 billion, respectively, at June 30, 1991.
 -0- 7/16/92
 /CONTACT: Hugo W. Quackenbush or Mark C. Thompson of Charles Schwab, 415-627-7810/
 (SCH) CO: The Charles Schwab Corp. ST: California IN: FIN SU: ERN


MC-RM-MM -- SF002 -- 9843 07/16/92 08:05 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 16, 1992
Words:1194
Previous Article:FORMER CITICORP CHAIRMAN AND CEO WALTER WRISTON JOINS CYGNUS BOARD OF DIRECTORS
Next Article:FRANK CARY, FORMER IBM CHAIRMAN AND CEO, JOINS CYGNUS BOARD OF DIRECTORS
Topics:


Related Articles
SCHWAB REPORTS RECORD SECOND-QUARTER AND FIRST-HALF RESULTS
SCHWAB REPORTS THIRD QUARTER RESULTS AND RECORD YEAR TO DATE RESULTS
SCHWAB REPORTS RECORD QUARTERLY RESULTS
SCHWAB ESTIMATES SECOND QUARTER RESULTS
SCHWAB REPORTS SECOND QUARTER AND RECORD FIRST HALF RESULTS
SCHWAB ESTIMATES RECORD FOURTH-QUARTER AND FULL-YEAR RESULTS
Schwab Reports Record First Half Results
Schwab Reports Second Quarter Results
SDBA Users Show Renewed Interest in Equities, Increase Trading Activity; Second Quarter SDBA Indicators Report Reflects Increased Investor Optimism.
Schwab Announces Quarterly Results, Increases Dividend by 27% Following Profit Improvement.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters