Schwab does it hard in the US
Charles Schwab has made a loss in profits of 63 per cent in the last quarter in the US.
This latest round of bad news for the online trading giant follows the announcement made last month that the company would be shedding 13 per cent of its staff to compensate for depressed online trading volumes.
In fact, Schwab reported that commission and trading revenues dropped 51 per cent in the last quarter. Its operating income of $120 million paled next to its income of $323 million in the same period the year before.
Total net revenues dropped 31 per cent to $1.2 billion while commission revenues fell 48 per cent to $408 million. Trading was down $95 million, or 61 per cent.
"The difficult securities market environment that emerged late last year continued to early 2001, and our clients' daily average revenue trades declined to their lowest level since the fourth quarter of 1999," the company chief executive Charles Schwab says in a statement.
Schwab added $31 billion in net new assets during the quarter, but this was countered by customer assets falling 15 per cent to $806 billion in the same period.
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
