Charles Schwab's first-quarter revenue in 2024 topped analysts' estimates amid a rising equity market and renewed client trading activity.
Total client assets reached a record $9.1 trillion, and while total net revenues of $4.74 billion declined by 7% versus the prior year, they were up 6% from the final quarter of 2023.
Schwab's shares rose 3.5% in early trading Monday to $72.50 and are up 6% year to date.
During a call with investors and analysts, Schwab CEO Walt Bettinger said the quarter represented an important moment for the organization after a difficult year in 2023.
"As I sit here today, recognizing that risk remains, I can confidently say the green shoots of a turnaround in the environment are appearing," Bettinger said. "We are seeing positive impacts across nearly every part of the firm. Combined with the timelessness of our strategy and the hard work of the team, my optimism for the future is strong."
Bettinger also explained that the transition of the final 10% of TD Ameritrade advisors and clients to the Schwab platform is set to happen in May.
"It's exciting because this last group is a unique and important group. They are our most active traders," he said. "Many of them are power users of the thinkorswim trading platform.
"We expect the transition to be relatively smooth, because the client experience they will have after the fact will be essentially unchanged. They'll have access to the trading platform they have historically utilized while also adding benefits and features of Schwab," Bettinger added.
More Q1 Results
Schwab's adjusted net income for the quarter totaled $1.4 billion, down about 17% from a year ago, according to an earnings presentation.
