Discount-broker-turned-major-banking-player Charles Schwab
Schwab's net income leaped to $243 million from $6 million in the first quarter of 2010, more than just a bit of which was owed to the fact that its total client assets reached an all-time high of $1.65 trillion at the end of the same period -- an increase of 10% on a year-on-year basis. Net revenues grew to $1.2 billion from $978 million in the corresponding period last year, driven by growth in net interest revenue, asset management, and administration fees. The company's total interest-earning assets also went up by 24.7% to $90.13 billion compared to the preceding year.
On top of a pretty great year, the company continues to look ahead. The discount brokerage intends to increase investment on client-related initiatives by 40% over the last year to secure its business in areas such as fixed-income, global investing, mobile and tablet solutions, and advisor-focused technology. I like what I see here and foresee momentum developing in the coming year.
No small part of this momentum has come off the heels of bigger banks and brokers like Citibank
Last month, I had pointed out the sensibility of acquiring derivatives specialist optionsXpress
The Foolish bottom line
Charles' strong metrics definitely paint a healthy picture of the company. The growth in all three major components of its revenue complemented by a decline in costs is definitely a good sign for prudent investors who evaluate companies on the basis of rock-solid fundamentals. I like what I see here.
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