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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Fool contributor Zeeshan Siddique does not own any of the stocks mentioned in the article. optionsXpress Holdings and Charles Schwab are Motley Fool Stock Advisor selections. The Fool owns shares of Bank of America and TradeStation Group. Through a separate Rising Star portfolio, the Fool is short Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.