Enter multiple symbols separated by commas

Charles Schwab Profit More Than Doubled From Year Ago

Charles Schwab said fourth quarter earnings more than doubled over the previous year.

The San Francisco-based brokerage reported net income of $467 million, or 37 cents a share, up from $187 million, or 14 cents a share, a year earlier.

Results include a $205 million noncash tax benefit relating to the $3.3 billion sale announced in November of wealth management unit U.S. Trust to Bank of America, the company said.

Excluding the benefit, earnings were 21 cents a share, matching analysts' expectations.

Net revenue for the quarter rose 14%, to $1.1 billion.

"Economic drivers for the quarter looked pretty good," Keefe, Bruyette & Woods analyst Richard Herr said. "Asset growth was strong, but the majority of growth was driven by
market gains."

Reclassifying earnings to reflect the pending U.S. Trust sale also made it difficult to compare the company's earnings with prior estimates, Herr added.

Schwab's annual net income was up 69% to a record $1.2 billion, compared with $725 million in 2005. Annual revenue was up 19%, at $4.3 billion.

Total client assets rose 18% in 2006 to $1.2 trillion at year's end.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.