The Charles Schwab Corporation reported its financial results for the third quarter and the first nine months of 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. For Q3 2024, total net revenues reached $4.8 billion, a 5% increase from $4.6 billion in Q3 2023. However, year-to-date total net revenues decreased slightly to $14.3 billion, down 1% from $14.4 billion in the same period last year.

Net income for Q3 2024 was $1.4 billion, reflecting a 25% increase from $1.1 billion in Q3 2023. For the first nine months, net income totaled $4.1 billion, a modest 2% increase from $4.0 billion in the prior year. Diluted earnings per share (EPS) for Q3 2024 was $0.71, up 27% from $0.56 in Q3 2023, while year-to-date diluted EPS was $2.05, a slight increase from $2.03.

The company experienced significant changes in client asset flows, with net outflows of $4.4 billion in Q3 2024 from off-platform brokered CDs issued by Charles Schwab Bank (CSB), compared to inflows of $3.3 billion in Q3 2023. For the first nine months of 2024, net outflows totaled $9.1 billion, contrasting with inflows of $30.1 billion in the same period of 2023. Notably, inflows from a mutual fund clearing services client amounted to $10.3 billion in the first nine months of 2024, up from $12.0 billion in the previous year.

The company’s core net new assets for Q3 2024 were $95.3 billion, a 109% increase year-over-year, while total client assets reached $9.92 trillion as of September 30, 2024. Daily average trades (DATs) were 5.7 million, reflecting a 9% increase from Q3 2023.

In terms of expenses, total expenses excluding interest for Q3 2024 were $3.0 billion, down 7% from $3.2 billion in Q3 2023. The decrease was attributed to lower compensation and benefits expenses, which fell 14% to $1.5 billion. The company also reported acquisition and integration-related costs of $23 million for Q3 2024, significantly lower than $106 million in Q3 2023.

Strategically, Schwab completed the integration of TD Ameritrade in May 2024, converting approximately $1.9 trillion in client assets. The company anticipates realizing annualized cost synergies of $1.8 billion to $2.0 billion from this integration, having achieved about 95% of this target on an annualized run-rate basis through September 30, 2024.

Overall, while Schwab's revenue and profitability showed positive trends in certain areas, challenges in client asset flows and net interest revenue were notable compared to the previous fiscal period.