Report
Michael Wong
EUR 101.80 For Business Accounts Only

2018 Holds 3 Key Developments for Earnings Growth At Charles Schwab

Wide-moat Charles Schwab reported record net income to common shareholders of $2.2 billion on record revenue of $8.6 billion in 2017, and there’s still room for growth. Additional net interest income is the key, but more specifically, the company needs to increase its deposit base and higher interest rates on the long end of the yield curve for earnings to approximately double in five years. We don’t plan on making a material change to our recently increased $57 fair value estimate for Charles S...
Underlying
Charles Schwab Corporation

Charles Schwab is a savings and loan holding company. The company is engaged, through its subsidiaries, in wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company provides financial services to individuals and institutional clients in two segments: Investor Services, which provides retail brokerage and banking services to individual investors and retirement plan services, as well as other corporate brokerage services, to businesses and their employees; and Advisor Services, which provides custodial, trading, banking and support services, as well as retirement business services to independent registered investment advisors and recordkeepers.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Michael Wong

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