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Charles Schwab Q2 earnings increased 28%

Staff Writer | July 18, 2016
The Charles Schwab Corporation announced that its net income for the second quarter of 2016 was $452 million, up 10% from $412 million for Q1 2016, and up 28% from $353 million for Q2 2015.
Charles Schwab
Charles Schwab   Pre-tax profit margin was the highest since 2008
Net income for the six months ended June 30, 2016 was $864 million, up 32% from the year-earlier period.

CEO Walt Bettinger said, "Our second quarter results mark yet another period of standout financial performance for Schwab.

"Our 17% year-over-year revenue growth and 28% increase in earnings reflect the power of our successful ‘through clients’ eyes’ strategy and disciplined financial management, particularly in the face of an unsettled economic environment and interest rates that remain near historic lows.

"Our second quarter pre-tax profit margin of 39.4% was the highest since our record performance in 2008. During the intervening seven-plus years, we have focused on balancing near-term profitability with reinvestment to drive growth, while working through the economic and interest rate aftermath of the financial crisis.

"From 2009 through mid-2016, we coped with extraordinary pressure on our revenues while investing approximately $3 billion in our brand and service capabilities, expanding our client base by approximately $1.20 trillion to $2.62 trillion, and building our earnings to today’s record level.

"Our second quarter pre-tax profit margin represented the 13th consecutive quarter in excess of 30% and a significant improvement from the sub-30% margins that followed the crisis."