Charles Schwab (SCHW) has reported fourth-quarter financial results that beat Wall Street forecasts even though its revenue and profits declined from a year earlier.
The financial services and investment firm reported Q4 earnings per share (EPS) of $0.68 U.S., which was ahead of consensus estimates that called for $0.64 U.S.
Revenue in the final quarter of 2023 totaled $4.45 billion U.S., which essentially matched analysts’ forecasts.
However, Charles Schwab’s Q4 revenue was down 18% from $5.50 billion U.S. in the same period of 2022. Its profit declined 36% from $1.07 U.S. per share a year earlier.
The company blamed the year-over-year declines on rising interest and noninterest expenses, both of which hurt its top and bottom lines.
Charles Schwab, one of America’s biggest financial services firms, has suffered over the last year as high interest rates prompted customers to move money out of low-yielding accounts and into better-paying money-market funds.
Schwab has also been struggling to integrate TD Ameritrade, which it purchased for $26 billion U.S. in an all-stock deal.
The stock of Charles Schwab has declined 23% over the last 12 months to trade at $64.31 U.S. per share. The stock is down 7% so far in 2024.
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