(Bloomberg) - Charles Schwab Corp. said revenue is rebounding after slipping earlier this year as fewer customers shift money in search of higher yields.
Third-quarter revenue will probably rise as much as 3% from the previous three months, after dropping 1% in the second quarter, according to a statement Monday. That would push revenue to as much as $4.83 billion for the period.
“These anticipated quarterly results reflect healthy investor engagement across Schwab’s modern wealth platform and the continued slowing of rate-related client cash realignment activity,” the Westlake, Texas-based brokerage said in the statement.
New brokerage accounts in August increased 4% compared to a year earlier to total 324,000 in August.
Schwab said in July that the bank will be tweaking some of its operations, causing shares of the firm to tumble at the time. The firm will re-evaluate its balance sheet to more efficiently use capital, while also continuing to pay down some high-cost debt the firm had previously taken on.
Shares of the firm climbed 2.1% to $63.42 at 10:08 a.m. in New York, paring this year’s decline to 7.8%.
By Paige Smith
