| 16 July 2009

Schwab's Q2 results are in and though the broker continues to be a leader, assets are down and growth is slowing. The online broker continues to add new assets but at a slower pace than last year. Client assets dropped 12% to $1.22 trillion and only $17.3 billion in net new assets were added, 33% lower than last year.
The company did post a profit of $205 million but reduced fees cut into their overall profits significantly. The company stressed the balance between continuing to invest in the caref and feeding of current customers while at the same time controlling costs.

In a statement, Schwab's Chairman, Charles Schwab, said that they want to make the most of the opportunities they have right now in the marketplace, which "means continuing to invest in our clients while maintaining the solid financial performance expected from Schwab as a stable, sound institution. The company’s second quarter results reflect our ongoing success in striking that balance.”

More than 190,000 brokerage accounts were added in the second quarter. Schwab's CEO Walt Bettinger commented on the recent improvements they've made to their products and services. “Recent examples of these investments include a new 2% cash back Visa credit card, a high yield savings account, reduced pricing across all of our proprietary equity index mutual funds, an improved options trading platform, a new version of the Schwab.com website for our retail investors, and a series of investments supporting our valued independent advisor clients. We expect to continue investing with a long term view to support the strong client momentum we enjoy today.”

The company also cited improvements to their platform meant to attract more active options traders. Such improvements include a simplified application process, more training and updated charting and screening tools.