Upcoming AWS Coverage on Nomura Holdings

LONDON, UK / ACCESSWIRE / January 24, 2017 / Active Wall St. announces its post-earnings coverage on The Charles Schwab Corp. (NYSE: SCHW). The Company released its fourth quarter and fiscal 2016 results on January 18, 2017. The San Francisco-based discount brokerage firm posted record net income for the reported quarter which also surpassed market expectations. Register with us now for your free membership at:

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One of Charles Schwab's competitors within the Investment Brokerage - National space, Nomura Holdings Inc. (NYSE: NMR), is expected to report its fiscal Quarter ending December 2016 earnings results on January 31, 2017 after market close. AWS will be initiating a research report on Nomura following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on SCHW; touching on NMR. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=SCHW

http://www.activewallst.com/registration-3/?symbol=NMR

Earnings Reviewed

For the three months ended December 31, 2016, Charles Schwab generated net revenue of $1.97 billion, up 17% compared to net revenue of $1.69 billion in the year earlier same quarter. However, the reported figure came in below analysts' consensus estimate of $1.99 billion. During Q4 2016, Charles Schwab's net interest revenue climbed 31% to $907 million. The Company's Asset management and administration fees advanced 19% to $801 million.

For FY16, Charles Schwab's revenues rose 17% to a record $7.5 billion. The Company stated that it achieved revenue growth by generating record levels of net interest revenue and asset management and administration fees, which more than offset lower revenue from trading and the conclusion of certain litigation. During FY16, the Company's net interest revenue rose 32% to $3.3 billion due to a strong increase in client cash sweep deposits and higher short-term interest rates. Asset management and administration fees rose by 15% to $3.1 billion largely due to higher money market fund management fees relating to the rate environment and continued lift in client assets enrolled in one of our retail advisory solutions.

For Q4 2016, Charles Schwab posted record net income of $522 million, up 4% from $503 million for the prior quarter, and up 25% from $416 million for Q4 2015. The Company's earnings numbers surpassed Wall Street's expectations of $0.36 per share. The Company's net income for the twelve months ended December 31, 2016 was $1.9 billion, up 31% on a y-o-y basis.

Business highlights

Investor Services: New retail brokerage accounts for Q4 2016 totaled approximately 182,000, up 21% on a y-o-y basis; total accounts were 7.1 million, up 3% year-over-year. Charles Schwab opened two Company branches in Brookfield, WI and Aspen, CO and opened two independent branches in Gainesville, FL and Peoria, IL. Schwab has over 335 branches across the country that offer clients access to a range of investing and personal finance guidance, services, and products.

Client Details

Client assets enrolled in one of Charles Schwab's retail advisory solutions and those guided by independent advisors totaled $1.40 trillion at the end of FY16, up 12%. New and existing clients brought $125.5 billion in core net new assets to the Company during FY16, marking a 5% annual organic growth rate and the 5th consecutive year over $100 billion. Net new assets in Charles Schwab Retail and Advisor Services businesses rose by 10% and 21%, respectively, over the prior year, while Mutual Fund Clearing and Retirement Plan flows slowed due to client turnover. Total client assets at the end of FY16 were a record $2.78 trillion, up 11%. The Company closed out 2016 serving more clients than ever, including 10.2 million active brokerage accounts, 1.1 million banking accounts and 1.5 million retirement plan participants, which increased 4%, 7%, and 2%, respectively from FY15.

Products and Infrastructure

Charles Schwab Bank: During Q4 2016, Charles Schwab launched a series of client experience, risk management, and efficiency improvements including two-way text fraud alerts for debit cards, online joint Schwab Bank High Yield Investor Checking® account opening, paperless Schwab Bank High Yield Investor Saving® statements, and paperless 1099-INT statements. At the end of Q4 2016, Charles Schwab Bank's balance sheet assets totaled $175.7 billion, up 26% on a y-o-y basis. The banks outstanding mortgage and home equity loans were $11.5 billion, up 4% on a y-o-y basis. Charles Schwab Bank's pledged Asset Line® balances = $3.9 billion, up 22% on a y-o-y basis.

For Q4 2016, client assets managed by Charles Schwab's Windhaven® totaled $9.0 billion, down 24% from Q4 2015. Client assets managed by the Company's ThomasPartners® totaled $10.2 billion, up 40% from Q4 2015. Client assets managed by Intelligent Portfolios (Schwab Intelligent Portfolios® and Institutional Intelligent Portfolios®) totaled $12.3 billion, up $2.1 billion from Q3 2016.

Cash Flow & Balance Sheet

Charles Schwab Bank's completed approximately $8 billion in bulk transfers to Schwab Bank during FY16, including approximately $4 billion in Q4 2016. These transfers, along with growth in bank deposits from our ongoing asset gathering, helped increase interest-earning assets on the Company's balance sheet by 22% during FY16 to $216 billion at year-end. Charles Schwab increased its quarterly cash dividend by 17% during FY16 to $0.07. The Company ended 2016 with a preliminary Tier-1 Leverage ratio of 7.2% and a full-year return on equity of 14%, the highest in seven years.

Stock Performance

On Monday, January 23, 2017, Charles Schwab's shares were slightly down 0.29%, finishing the day at $41.19 with volume of 4.86 million shares exchanging hands by the close of the trading session. The Company's stock price rallied 28.32% in the last three months, 46.83% in the past six months, and 61.00% in the previous twelve months. Furthermore, on a year-to-date basis, the stock gained 4.36%. Shares of the company have a PE ratio of 31.49 and currently have a market cap of $54.78 billion.

Corporate Event: The Company also announced that it has scheduled a Business Update for institutional investors on February 02, 2017. This Update is designed to help the investment community keep abreast of recent developments and management's strategic focus. The program is scheduled to run from 11:30 a.m. - 3:15 p.m. ET.

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SOURCE: Active Wall Street