(Sharecast News) - Charles Schwab impressed investors with record revenues and earnings in the third quarter, as higher trading volumes and capital inflows boosted financial results.
Revenues were 27% higher than last year at $6.14bn, as client transactional sweep cash balances rose $13.5bn over the three months to $425.6bn, driven by organic growth, client net buying activity and seasonality, the American brokerage said. This was comfortably ahead of the $6.01bn expected by the market.

Asset management and administration fees were 13% at $1.7bn, helped by favourable market conditions, while trading revenues were up 25% due to robust volumes and stronger client interest in derivatives.

Daily average trading volumes were 30% higher than the previous year at 7.4m, as new brokerage account openings exceeded 1m for the fourth straight quarter, taking total client accounts to 45.7m.

Total client assets rose 17% to a record $11.59trn.

Meanwhile, net interest margin rose 21 basis points over the past quarter to 2.86%, helping drive adjusted net income 61% higher to $2.46bn, or $1.31 a share - beating the $1.25 consensus forecast.

"Strengthening organic growth trends, increasing adoption of wealth solutions, and favorable macroeconomic tailwinds powered another quarter of record revenue and earnings per share," said chief executive and president Rick Wurster.

Shares were up 0.9% at $95.17 in early deals in New York.

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