Charles Schwab Q3 Earnings Drive Share Surge

Charles Schwab's shares surged following a strong third-quarter earnings report, showing a 25% increase in net income to $1.41 billion, or 71 cents per share, surpassing analyst expectations. The company reported revenues of $4.85 billion, driven by a 20.6% increase in asset management fees and client assets reaching a record $9.92 trillion, a 27% rise from the previous year. Transactional cash sweep balances improved, resulting in a reduction of bank supplemental funding by $8.9 billion. The successful integration of TD Ameritrade has allowed Schwab to focus on expanding its wealth management services, contributing to an inflow of $40 billion in managed-investing offerings this year. Despite rising interest costs, the company's diversified business model and the anticipation of favorable economic conditions have supported its performance. As CEO Walt Bettinger prepares to retire, the firm's results set a positive tone for incoming CEO Rick Wurster.