Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Money Market Funds Hurt Schwab's Bottom Line Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, April 16, 2010

Money Market Funds Hurt Schwab's Bottom Line

News summary by MFWire's editors

Money-market fund fee waivers cost Charles Schwab $125 million in the first quarter of 2010. Looking at the quarterly earnings, released Thursday, The Wall Street Journal's Fund Track column Friday reported that Schwab would have had a revenue from asset-management and administration fees of $545 million, if the waivers hadn't expelled 23 percent of that figure.

"We think we've seen the low point [in interest rates] and that the first quarter was the high-water mark for the impact of the fee waivers," Schwab spokesman Greg Gable told The Journal.

For the quarter ended March 31, Schwab had net income of $119 million on total net revenue of $978 million.

Schwab should be able to get rid of the waivers once interest rates rise and a 1 percent increase in short-term rates would mean 0.6 percent of new net revenue, according to Gable.

In the first quarter of 2009, fee-waivers accounted for $6 million in negative revenue. That figure rose quarter-to-quarter and reached $110 million in Q4 of 2009. 

Edited by: Daniel Tovrov


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use