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.
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