Charles Schwab moved up on rumour of acquisition by Deutsche Bank
On July 16, 2008, Charles Schwab announces its earnings for the second quarter. Net income increased 1% from the same period in 2007 to $295 million. Revenue for the quarter rose to $1.31 billion from $1.2 billion in 2007, as Schwab increased its number of active brokerage accounts, retirement plan participants, and banking accounts.
On Wednesday, January 16, Charles Schwab reported income of $308 million in the fourth quarter of 2007, a 34% decline from the same quarter in 2006. 4Q2006 earnings, however, included a one-time tax gain and proceeds from the sale of its U.S. Trust division. Excluding these items, income from continued operations was up 36% in 4Q2007.
Amid the troubles facing E*Trade and the speculation about its continued viability, Schwab, one of E*Trade's main competitors, saw its stock price rise. The idea is that, if E*Trade's customers withdraw their money, many will turn to Schwab for their online brokerage services.
In its third-quarter earnings statement, Charles Schwab reported an operating income of $512 million, up from $382 million in the same quarter in 2006.
Charles Schwab announced that its third-quarter operating profit would rise around 35% over the second quarter of 2007. Positive analyst coverage also helped to boost the company's stock price during trading on September 18th.
Schwab announced the buyback of 100 million shares through an auction which will guarantee $19.50 per share and up to $22.50. The company also announced a special one-time dividend of $1 per share (1.2 billion outstanding shares). These moves make it much less likely that the company will acquire another brokerage such as E*Trade or Ameritrade as speculated by some.
Bank of America announces free trading to customers with more than $25,000 in deposits.
Schwab's shares close at a 6-year high as the company announces that it is considering a dividend pending the closing of its US Trust divestiture
On Wednesday, January 16, Charles Schwab reported fourth-quarter net income of $308 million, a 34% decline from the same period in 2006. The 4Q2006 earnings, however, included a one-time tax gain and proceeds from the firm's sale of its U.S. Trust division to Bank of America. Excluding these items, income from continued operations was up 36% for the quarter.
Schwab announces the sale of its US Trust business to Bank of America for $3.3 billion. At the time, US Trust was the fourth largest private bank (catering to very wealthy individuals) with $94 billion in assets under management.
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