2023-04-17 13:03:06
US financial services companyAt Charles Schwab, bank deposits fell 30% year over year in the first quarter. Suspended share buybacks. The worst U.S. banking crisis since 2008 has had an impact.
Customer deposits fell to $325.7 billion (regarding ¥43.6 trillion) as of March 31, the company said on Thursday. Almost in line with analyst expectations. Deposits fell 11% from the end of last year.
Schwab said it would halt share buybacks in light of “regulatory uncertainty” following the failures of several U.S. banks, including Silicon Valley Bank (SVB), in March.
“Our number one priority in the first quarter is to stay connected with our clients and help them understand what is happening in the market,” Chief Executive Officer Walt Bettinger said in a statement. It was regarding helping,” he said.
Client money continued to flow into Schwab investment products. Net additions to major client assets totaled $132 billion in the first three months. In March alone, the net addition was $53 billion, the second largest for the month on record.
Schwab Reports March Client Asset Growth, Aims to Allay Investor Concerns
Adjusted earnings for the first three months were 93 cents per share. That beat the average of analyst estimates compiled by Bloomberg by 3 cents. Net revenue of $5.1 billion. Market expectations were $5.2 billion.
Original title:Schwab Deposits Tumble as Brokerage Halts Stock Buybacks (1)(excerpt)
(I will add and update the CEO’s comments etc.)
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