The Charles Schwab Corporation - SCHW STOCK NEWS

The Charles Schwab Corporation reported record net income of $1.5 billion for Q1 2021, up from $1.1 billion in Q4 2020 and $795 million in Q1 2020. Net revenues reached $4.7 billion, an 80% increase year-over-year. Trading revenue surged 42% sequentially, supported by heightened market activity and new accounts. Despite a 2% rise in total expenses to $2.8 billion, the pre-tax profit margin improved to 41.6%. The company ended March with $7.07 trillion in client assets, reflecting a 102% increase from the previous year.

The Charles Schwab Corporation announced a Spring Business Update for institutional investors on April 22nd, 2021. The webcast aims to keep the investment community informed about recent developments and strategic focuses. Participants include top executives, such as CEO Walt Bettinger and CFO Peter Crawford. Schwab, a prominent financial services provider, boasts 31.5 million active brokerage accounts and $6.9 trillion in client assets as of February 28, 2021. The event will run from 8:00 a.m. PT to 9:15 a.m. PT.

According to a recent Schwab survey, 15% of current U.S. stock market investors began investing in 2020. These new investors, dubbed Generation Investor (Gen I), show greater optimism than pre-2020 investors. Key findings indicate that 72% of Gen I are optimistic about the market, with 57% anticipating market growth in 2021. Despite facing financial impacts from the COVID-19 pandemic, 54% are focused on building emergency funds. The report highlights a strong desire for educational resources, with 94% seeking tools for research and 82% interested in professional guidance.

The Charles Schwab Corporation announced the redemption of all 600,000 shares of its 6.00% Non-Cumulative Perpetual Preferred Stock, Series C, effective June 1, 2021. This includes 24,000,000 associated depositary shares, each valued at $25.00. Though the redemption price excludes any declared quarterly dividend, it will be paid separately on the same date to eligible holders. The depositary shares are traded on the NYSE under the symbol SCHW PrC and will follow DTC procedures for redemption via Equiniti Trust Company.

New insights from Schwab Retirement Plan Services highlight the growing demand for virtual retirement education, particularly post-pandemic. In 2020, a significant 207% increase in attendance for on-demand sessions was reported. Virtual options enhanced convenience for employers, leading to a 57% drop in meeting cancellations. Attendance for holistic personal finance topics surged by 54%, indicating a shift in worker preferences. Overall, the trend towards virtual education is likely to continue, shaping future retirement planning strategies.

Charles Schwab Investment Management announced the Schwab International Dividend Equity ETF (SCHY) set to begin trading around April 29, 2021. With an operating expense ratio of 0.14%, it positions itself as a low-cost option for investors seeking exposure to international dividend equities. This ETF will track the Dow Jones International Dividend 100 Index, expanding Schwab's suite of ETFs to 26. The launch responds to rising demand for income-focused investment strategies, particularly among Baby Boomers.

The Charles Schwab Corporation announced a public offering of depositary shares, each representing a 1/40th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series J, with a liquidation preference of $1,000. The company aims to use net proceeds to redeem some of its outstanding Series C Preferred Stock. BofA Securities, Credit Suisse, J.P. Morgan, Morgan Stanley, and Wells Fargo are the joint book-running managers for the offering, complying with SEC regulations. This press release contains forward-looking statements subject to various risks and uncertainties.

The ETF Investor Study by Charles Schwab reveals a significant increase in ETF investments among individual investors. The study shows that ETF allocations in portfolios are expected to rise from 29% to 38% over five years. A remarkable 94% of current ETF investors plan to continue purchasing, while 45% of non-ETF investors are likely to consider ETFs. Millennials lead in ETF adoption, with 29% planning significant investments in the next year. Key factors for interest include diversification (60%) and ease of transactions (49%).

Charles Schwab Investment Management announced that the Schwab Fundamental International Large Company Index Fund (SFNNX) received a 2021 US Refinitiv Lipper Fund Award for outstanding performance, marking the fourth consecutive year of recognition for its Fundamental Index fund suite. The fund was ranked best-in-class among 43 peers for a five-year period ending November 30, 2020. David Botset, SVP of Product Strategy, emphasized the importance of diversification in investing, noting the fund's low-cost complement to traditional strategies, aiming to help investors achieve financial goals.