Schwab Falls as CEO Flags Most Challenging Time Since 2000
- No one at firm is ‘kidding themselves,’ CEO Bettinger says
- Brokerage faced tough quarters after rate hikes eroded assets
A Charles Schwab location in New York.
Photographer: Angus Mordant/BloombergThis article is for subscribers only.
Charles Schwab Corp. reported declines in profit, new assets and deposits as it navigated a tumultuous year of interest rate hikes that dented the firm’s balance sheet — a set of results that initially sent its shares tumbling.
Schwab said net new assets fell 48% to $66.3 billion in the fourth quarter while net income also dropped by almost half. Bank deposits in the period declined 21% to $290 billion and the company’s total retail brokerage accounts fell short of analyst estimates at 34.8 million.