The Charles Schwab, a US-based financial holding company, has a net income of $205m, or $0.17 per diluted share, for the second quarter ended June 30, 2010, compared to $205m, or $0.18 per diluted share, for the same quarter of 2009.
Net revenues fro the second quarter of 2010 declined marginally to $1.080bn from $1.085bn in the corresponding quarter of 2009.
For the six months ended June 30, 2010, the company’s net income was $211m, down 50% from $423m in the same period last year.
For the first half of 2010, the company’s net revenues declined 6% to $2.06bn from $2.19bn in the corresponding half of 2009.
Joe Martinetto, CFO of Charles Schwab, said: “Short-term interest rates rose a bit further between the first and second quarters, which, along with continuing solid growth performance in our credit portfolios, helped our net interest margin increase from 183 to 201 basis points. This improvement in net interest margin, along with higher levels of interest-bearing assets driven by continued growth in our client base, helped net interest income rise for the third consecutive quarter to $382m.
“Higher short-term rates also helped reduce fee waivers on our money market funds to $113m million, and asset management and administration fees rose for the first time in eight quarters, reaching $437m. We also reported a sequential increase in trading revenue for the second quarter of 2010, driven by the surge in client activity during May.
“Overall, our second quarter revenues were at their highest level in a year and represent the first sequential increase since the fourth quarter of 2008. Our second quarter spending was consistent with our 2010 plan, and we were able to achieve a 31.3% pre-tax profit margin.”