Charles Schwab Corporation (NYSE:SCHW) stock rose 0.59% (As on April 18, 7:59:57 AM UTC-4, Source: Google Finance) after the company reported first-quarter earnings that exceeded analyst expectations, driven by strong client asset growth and higher trading volumes. Net asset gathering helped total client assets increase 9% year-over-year to $9.93 trillion Core net new assets of $137.7 billion for the quarter represents a 5.5% annualized growth rate. New brokerage account openings increased 8% year-over-year to 1.2 million for the quarter, propelling total active brokerage accounts to 37.0 million. Managed Investing Solutions net inflows grew 15% relative to 1Q24 – setting a new quarterly record. Margin balances ended the quarter essentially flat versus 4Q24 at $83.6 billion, as investors reduced leverage during the back half of the quarter amidst an increasingly uncertain environment. Driven by a sharp increase in market volatility, daily average trading volume grew 17% quarter-over-quarter. The company has reported net income for the first quarter totaling $1.9 billion, or $.99 earnings per share.

Moreover, net interest margin expanded sequentially by 20 basis points to 2.53%. Client transactional sweep cash balances ended at $407.8 billion, a sequential decline of $10.8 billion, reflecting typical first quarter seasonality as well as client net equity selling during the back half of the quarter. Bank Supplemental Funding declined $11.8 billion during the quarter to $38.1 billion at March month-end. Asset management and administration fees increased by 14% year-over-year to $1.5 billion as organic growth and product utilization more than offset the impact of recent equity market weakness. Trading revenue increased 11% versus 1Q24 due to higher volumes. GAAP expenses for the quarter increased 7% versus 1Q24; excluding first quarter amortization of acquired intangibles of $130 million, adjusted total expenses (1) were up 8% year-over-year. Capital ratios across the firm continued to strengthen – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) reaching 9.9% and 7.1%, respectively.

SCHW in the first quarter of FY25 has reported the adjusted earnings per share of $1.04, beating the analysts’ estimates for the adjusted earnings per share of 99 cents. The company had reported the adjusted revenue growth of 18 percent to $5.6 billion in the first quarter of FY25, beating the analysts’ estimates for revenue of $5.46 billion.

Additionally, the company increased its quarterly common dividend by 8% to $0.27 per share and repurchased $1.5 billion worth of common stock during the quarter.