Schwab Sees Bounce in February Results

The company also anticipates adjusted pretax margins to expand by nearly four percentage points in the first quarter compared with last year’s fourth quarter, as it realizes the full effects of late 2023 incremental cost savings measures. This included the beginning of 2,000 layoffs and closures of some smaller leased offices.

Schwab stock, which has ranged from $45.65 to $71.40 over the last 52 weeks, traded at $67 Thursday afternoon, rougly flat for the day and down 3% year to date.

In January, Schwab reported that profits, new assets and deposits declined in last year’s fourth quarter, capping a year when higher interest rates hit its financial results.

As Bloomberg reported at the time, Schwab and other financial firms experienced higher funding costs last year as the Federal Reserve raised interest rates and customers shifted cash into high-yield vehicles, including money market funds.

The giant brokerage faced other issues last year as well, reporting that it was losing some assets that had been held at TD Ameritrade.  Schwab acquired the firm in 2020 and converted most accounts in 2023.

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