Charles Schwab Corporation (NYSE:SCHW) stock rose 3.69% (As on January 21, 11:35:20 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter earnings and revenue that handily beat analyst expectations, driven by strong client engagement and asset gathering. In the fourth quarter of 2024, the company added $115 billion in core net new assets, bringing asset gathering for the year to $367 billion – a 4.3% annualized growth rate. This 20% annual increase in net new assets reflects the ongoing progress following the Ameritrade integration. Net asset gathering helped total client assets increase 19% year-over-year to $10.10 trillion. New brokerage account openings increased 23% year-over-year to 1.1 million for the quarter, pushing total active accounts to 36.5 million. Managed Investing Solutions net inflows of $15 billion brought the full-year total to a record $55 billion – with converted Retail Ameritrade clients accounting for approximately 35% of net inflows. Margin balances grew sequentially by 15% to $83.8 billion, up 34% from year-end 2023. Trading activity increased 11% relative to the prior quarter as client engagement surged following the election.

Further, Sequential net interest margin expanded by 25 basis points to 2.33%. Client transactional sweep cash balances ended at $418.6 billion, a sequential increase of $34.6 billion. Bank Supplemental Funding (2) declined sequentially by $14.9 billion to $49.9 billion at December month-end. Asset management and administration fees achieved a quarterly record of $1.5 billion. Trading revenue increased 14% versus 4Q23 as a result of higher volumes and changes in trading mix. GAAP expenses for the quarter declined 7% versus 4Q23. Fourth quarter acquisition and integration-related costs, amortization of acquired intangibles, and restructuring costs equaled $177 million; exclusive of these items, adjusted total expenses (1) were flat year-over-year. Capital ratios across the firm continue to strengthen – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage reaching 9.9% and 6.8%, respectively.

SCHW in the fourth quarter of FY 24 has reported the adjusted earnings per share of $1.01, beating the analysts’ estimates for the adjusted earnings per share of 89 cents. The company had reported the adjusted revenue growth of 20 percent to $5.3 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $5.13 billion.

Looking ahead, management expressed confidence in Schwab’s competitive position and ability to drive continued growth as it capitalizes on opportunities from the completed Ameritrade integration.