Charles Schwab’s efforts to expand its advisory services have evidently paid off, as they experienced a 17% profit increase, bringing them to $290 million for Q3 2013.
Walt Bettinger of Charles Schwab explains: “These client results supported double-digit percentage increases in all three of our main revenue sources and 15% overall revenue growth versus the year-ago quarter.” The growth in earnings reflects Schwab’s continued evolution from a discount brokerage to a provider of broader advisory services. Nearly half of the firm’s $2.15 trillion in client assets are in an advisory program, up 17.4% from last year.
Despite these results, Schwab has suffered some setbacks. Schwab’s long-awaited plan to make exchange-traded funds available to retirement plans has been pushed back by undisclosed regulatory problems that are “pending resolution of a final regulatory issue.”
