HomeFinancial MarketsCharles Schwab Stock Jumps Amid Positive Q2 Report

Charles Schwab Stock Jumps Amid Positive Q2 Report

Brokerage firm Charles Schwab shared its second-quarter numbers this week, reporting stronger performance than the majority of analysts expected. This helped the company’s shares to take a 13% jump on Tuesday.

The Texas-based company saw a 9% revenue decline compared to the same period in 2022, but the reported $4.7 billion were still above the $4.6 billion expected by the analysts. Also, its adjusted net income of $1.5 billion came above the estimated mark of $1.3 billion.

But the biggest win for Charles Schwab is the slower deposit outflow from its bank. In the aftermath of the US banking crisis in March, the company saw one-third of the deposit get moved elsewhere.

During an earnings call, Peter Crawford, CFO of Charles Schwab, said that the company “observed a continued and substantial deceleration in the daily pace of cash outflows” in June.

“We expect we’ll see return of deposit growth, I would say, ahead of that typical seasonal buildup that you get in later November and into December,” Crawford added.

After making second-quarter earnings public, Charles Schwab saw its stock open at $64.64 on Tuesday morning compared to Monday’s close of $58.64. While this is the highest they have been since March, the company’s shares are still almost 20% down year-to-date.

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