Charles Schwab’s profit rises on higher interest income, trading revenues

Jan 21 (Reuters) – U.S. brokerage firm Charles Schwab posted a rise in fourth-quarter profit on Wednesday, buoyed by higher interest income and strong trading revenue amid a volatile market.

Speculation surrounding the Federal Reserve’s interest rate path and geopolitical uncertainty spurred portfolio reshuffling, prompting growth in trading businesses across Wall Street.

Schwab, with its brokerage, asset management, banking and other financial services, also benefited from an artificial intelligence-driven rally in the U.S. markets, boosting its management fees.

The company’s net revenue in the quarter climbed 19% to $6.34 billion compared to the previous year, but fell slightly short of the $6.37 billion estimated by analysts, according to data compiled by LSEG.

Its core net new assets in the quarter hit a record at $163.9 billion, bringing its total asset gathering in 2025 to $519.4 billion, a 42% jump.

It posted a fourth-quarter net income of $2.46 billion or $1.33 per share, versus $1.84 billion or 94 cents per share a year earlier.

Net interest revenue – the difference between interest earned on assets and paid out on liabilities – rose over 25% to $3.17 billion.

(Reporting by Utkarsh Shetti in Bengaluru; Editing by Vijay Kishore)