Shares of Charles Schwab Corporation (NYSE: SCHW) traded lower after the brokerage giant reported fourth-quarter 2023 earnings.
The firm's fourth-quarter adjusted net income fell 36% from a year earlier to $1.367 billion.
Adjusted EPS fell from $1.07 to $0.68, beating the consensus of $0.64, according to data from Benzinga Pro.
Revenue fell 19% to $4.46 billion, marginally missing the consensus of $4.48 billion.
The bank had $290 billion in deposits at the end of the fourth quarter of 2023, down 21% from the end of 2022.
Net interest revenue declined 30% Y/Y to $2.13 billion in the fourth quarter. Clients' daily average trades fell to 5.192 million, down 4% from a year ago.
In 2023, Schwab attracted $306 billion in core net new assets, including over $43 billion in December alone, pushing the total client assets to $8.52 trillion at year-end.
The company welcomed 977 thousand new retail households and 315 advisors-in-transition.
The company added 3.8 million new brokerage accounts to increase the total client base to 34.8 million.
The successful Ameritrade integration transitioned 90% of client assets and accounts by the end of 2023.
CFO Peter Crawford stated, "Schwab's financial performance during 2023 reflected the challenges of navigating a market environment shaped by the Federal Reserve's pronounced interest rate tightening policy and the follow-on effects stemming from the regional banking crisis in March.
Price Action: SCHW shares were down 7% at $59.79 during early morning trading on Wednesday.