NYSE$SCHW

Charles Schwab Corp · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Charles Schwab reported record earnings per share for the quarter, driven by strong client asset growth and active investor engagement.

Charles Schwab Corporation announced record net income of $1.6 billion for Q4 2021, compared to $1.1 billion for Q4 2020. Total client assets reached a record $8.14 trillion at year-end, up 22% versus December 2020. Core net new assets for the quarter totaled $162.2 billion, also a record.

  • Net income for the fourth quarter of 2021 was a record $1.6 billion, compared with $1.1 billion for the fourth quarter of 2020.
  • Total client assets reached a record $8.14 trillion at year-end, up 22% versus December 2020.
  • Core net new assets set a record at $162.2 billion for the quarter.
  • Company delivered record-breaking growth and financial performance in 2021.

Headline financials

Total Revenue

$4.71B

Previous: $4.18B+12.7%
EPS (adj)

$0.86

Previous: $0.74+16.2%
Core Net New Assets

$162B

No prior period
Total Client Assets

$8.14T

Previous: $6.69T+21.7%
New Brokerage Accounts

1.3M

No prior period
Active Brokerage Accounts

33.2M

Previous: 29.6M+11.9%
Capital Expenditures

$313M

Previous: $166M+88.6%
Free Cash Flow

$5.33B

Previous: $13.1B-59.3%
Net Income

$1.58B

Previous: $1.14B+39.2%
Operating Income

$2.02B

Previous: $1.48B+37.1%
Gross Profit

$4.71B

Previous: $4.18B+12.7%
Cash & Equivalents

$63B

Previous: $40.3B+56.1%
Total Assets

$667B

Previous: $549B+21.5%
Stock-Based Comp

$47M

Previous: $80M-41.3%

Revenue & EPS history

Charles Schwab · Revenue · Quarterly

$4.71B

Q4 2021+12.7%vs Q4 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Charles Schwab · $4.4B total across 4 segments · Q4 2021

  • Net Interest Revenue
    $2.14B+18.4%
  • Asset Mgmt/Admin Fees
    $1.11B+12.5%
  • Trading Revenue
    $1.02B+19.1%
  • Other Revenue
    $135M-21.1%

Forward guidance

The company did not provide specific financial guidance for 2022 in this earnings release. However, they expressed confidence in their long-term growth opportunities and commitment to delivering stockholder value.

Tailwinds

  • Focusing on quality client service.
  • Pushing forward with firm-wide initiatives.
  • Building a stronger and more capable company.
  • Progress in uniting as a single team.
  • Talent, culture, and client-first strategy.

Headwinds

  • Fluctuating environment.
  • Increasing debates regarding the overall pace of economic growth.
  • Potential path of inflation.
  • Ultimate impact of multiple global market disruptions.
  • Short-term interest rates remained near zero throughout the year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2021

Historical avgQ4 2021

+0.8%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+2.7%

Avg return

30 days after

63%

46 / 73 earnings

Positive

+12.6%

Q2 2023

Best reaction

-15.0%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%+2.5%-0.1%
Q4 2025+0.6%-8.3%-9.4%
Q3 2025-1.0%+0.8%+0.1%
Q2 2025+2.3%+0.2%-2.1%
Q1 2025+0.6%+1.2%+17.2%
Q4 2024+5.5%+7.1%+7.1%
Q3 2024+6.3%+5.2%+18.2%
Q2 2024-15.0%-17.3%-13.1%
Q1 2024+4.3%+4.8%+12.4%
Q4 2023-2.5%-1.1%+0.1%
Q3 2023+4.6%-0.9%+9.3%
Q2 2023+12.6%+13.4%+1.9%
Q1 2023+6.4%+6.0%+2.1%
Q4 2022-8.6%-6.9%-3.8%
Q3 2022-0.5%+1.9%+12.2%
Q2 2022+1.6%+1.3%+21.4%
Q1 2022-7.1%-15.0%-23.5%
Q4 2021-4.2%-6.6%-10.0%
Q3 2021+3.1%+4.5%+5.1%
Q2 2021-5.5%-1.4%+4.9%
Q1 2021-4.0%-5.6%+8.6%
Q4 2020-0.2%-0.6%+5.4%
Q3 2020+5.8%+5.4%+23.9%
Q2 2020-6.2%-1.2%-1.7%
Q1 2020-4.4%+1.0%-10.1%
Q4 2019+2.6%+2.8%+0.2%
Q3 2019+3.4%+5.9%+15.0%
Q2 2019+2.3%+6.0%-9.3%
Q1 2019+0.7%+0.4%-5.8%
Q4 2018+6.0%+8.4%+4.8%
Q3 2018-1.6%-4.4%-4.4%
Q2 2018+6.2%+2.1%+0.1%
Q1 2018+5.0%+7.7%+15.4%
Q4 2017-0.4%-0.2%-6.1%
Q3 2017-3.0%-0.1%-0.4%
Q2 2017-1.8%-1.8%-7.6%
Q1 2017+0.4%+0.5%+0.5%
Q4 2016+2.8%+2.1%+3.0%
Q3 2016+0.8%+0.9%+14.8%
Q2 2016+1.7%+4.3%+11.4%
Q1 2016+0.4%
Q4 2015-1.9%
Q3 2015+3.2%
Q2 2015+3.4%
Q1 2015+0.2%
Q4 2014+0.3%
Q3 2014+0.9%
Q2 2014-1.2%
Q1 2014+6.1%
Q4 2013+2.8%
Q3 2013+6.5%
Q2 2013-3.5%
Q1 2013-1.9%
Q4 2012-0.3%
Q3 2012+2.9%
Q2 2012+2.6%
Q1 2012+0.9%
Q4 2011+2.0%
Q3 2011+1.7%
Q2 2011-12.5%
Q1 2011+1.0%
Q4 2007+1.1%
Q4 2010+1.1%
Q4 2009+1.1%
Q3 2010-3.5%
Q2 2010-3.4%
Q1 2010-0.5%
Q1 2009-0.5%
Q3 2008+1.1%
Q3 2009+1.1%
Q2 2008+9.8%
Q4 2008+9.8%
Q2 2009+9.8%

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