Charles Schwab Corp (SCHW.US) Q2 profit surpasses market expectations with hot trading and record asset levels.

The latest financial report of Charles Schwab Corp (SCHW.US) shows that the company's earnings per share in Q2 exceeded market expectations, benefiting from record-high customer asset levels and growth in trading revenue. According to the financial report, Charles Schwab Corp's adjusted earnings per share reached $1.14, above market expectations of $1.10, with net revenue of $5.85 billion, a year-on-year increase of 24.7%. As of the end of the reporting period, total customer assets increased by 14% year-on-year to $10.76 trillion, a new record. Customer trading revenue surged by 23% year-on-year to $952 million. Charles Schwab Corp CEO Rick Wurster said, "Whether individual investors or registered investment advisors, both continue to see Charles Schwab Corp as a trusted partner. In this quarter, we added over 1 million brokerage accounts." However, it is worth noting that the company's net new asset growth of $73.6 billion was slightly lower than analysts' expectations. Against the backdrop of market volatility triggered by Trump's trade policies, daily revenue trading volume reached 7.57 million contracts, just slightly above market expectations. After the release of the financial report, Charles Schwab's stock price rose by about 3% in pre-market trading on Friday. The company had revealed in May that there were two days of record high trading volume this quarter, leading to some customers triggering manual margin call alerts when approaching the margin call. Wurster explained that this proactive communication was intended to give customers the opportunity to add funds, rather than forcing immediate liquidation, a service that was highly appreciated by customers at the time. As of the end of the quarter, the company's margin balance remained at $83.4 billion, basically unchanged from the previous quarter. The financial report stated, "After the market rebound following the market turbulence in April, investors started selectively increasing leverage." Additionally, the number of new brokerage accounts increased by 11% year-on-year to 1.1 million. Chief Financial Officer Mike Verdeschi stated in a statement that as of the end of June, client trading cash settlements totaled $412.1 billion, "allowing us to further reduce high-cost bank financing by $10.4 billion, with such financing balances dropping to $27.7 billion at the end of the quarter."