Flat Schwab Earnings Top Forecasts
Charles Schwab Corp. posted flat second-quarter profit, but showed signs of emerging from the damage inflicted by low interest rates and money-market fund-fee waivers.</br></br>Schwab, the largest discount brokerage by market capitalization, waived $113 million in such fees over the past three months, posting its first decline in three quarters. With interest rates remaining low, Schwab waived $224 million in such fees in 2009 so that clients' returns wouldn't turn negative.</br></br>In an interview with Dow Jones Newswires, Schwab Chief Financial Officer Joe Martinetto said that "if interest rates stay where they are, we would expect some moderate improvement as we get to the second half of the year."</br></br>Mr. Martinetto declined to provide a specific forecast for fee waivers for the remainder of 2010.</br></br>Reflecting some further optimism for the franchise, Chairman Charles Schwab, in a statement, said cost cuts, stabilizing interest rates and an improving U.S. economy should help results improve from second-quarter levels the rest of the year.