Charles Schwab Corp. reported Monday second-quarter earnings that rose to $452 million, or 30 cents a share, from $353 million, or 25 cents a share, in the same period a year ago. Revenue increased 17% to $1.83 billion from $1.57 billion. The FactSet consensus was for earnings per share of 30 cents and revenue of $1.80 billion. Net interest revenue rose to $798 million from $612 million, beating the FactSet consensus of $790.4 million. Trading revenue slipped to $201 million from $203 million, missing expectations of $203.2 million. Core net new assets increased $26.6 billion, while the number of brokerage accounts increased by 271,000. “Our year-to-date results have outperformed the baseline scenario that we laid out in the beginning of 2016. But as the second quarter came to a close, market concerns regarding economic growth, interest rates and equity valuations in the second half of this year escalated significantly,” said Chief Financial Officer Joe Martinetto. “While many of these concerns have abated somewhat, we recognize the importance of remaining flexible in order to make the most of the environment as it evolves.” The stock, which climbed 1.8% in premarket trade, has tumbled 18% year to date through Friday, while the S&P 500 has gained 5.8%.
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