Charles Schwab Corp(SCHW.US)Q4 earnings exceed expectations, core net new assets of $115 billion.

Charles Schwab Corp (SCHW.US) has announced better-than-expected fourth-quarter performance, with the retail brokerage business continuing to attract record-breaking new inflows of funds. The data shows that the company's Q4 revenue increased by 20% year-over-year to $5.3 billion, surpassing the market's expectation of $5.2 billion. Adjusted earnings per share were $1.01, also exceeding analysts' expectations. Annual revenue grew by 4%, surpassing the company's growth guidance range of 3% to 3.5% provided in December last year. Rick Wurster, the new CEO who took office at the beginning of the year, said, "Record net inflows into our managed investment solutions helped boost fourth-quarter revenues." Following the release of the financial report, the company's stock surged over 6% in pre-market trading on Tuesday. Charles Schwab Corp stated that 2024 is a "transitional" year for the company after experiencing turbulence in the regional banking industry in 2023. Wurster and the new CFO Mike Verdeschi were appointed to restore stability to the company, and so far, Charles Schwab Corp's performance has continued to improve. The company reported total client assets of $10.1 trillion, surpassing $10 trillion for the first time in November last year, slightly below analysts' expectations of $10.17 trillion. Core net new assets in the fourth quarter were approximately $115 billion, with an annual increase of around $370 billion. CEO Rick Wurster stated that the 20% year-over-year growth in net new assets reflects the company's continued progress following the acquisition of TD Ameritrade in 2020. Charles Schwab Corp also noted an 11% increase in trading activity compared to the previous quarter, driven by increased customer engagement post the presidential election. Additionally, Charles Schwab Corp plans to add a dozen new branches this year and relocate some of its existing 400+ branches to be closer to major streets and communities with higher foot traffic.