SAN FRANCISCO (AP) â€" The Charles Schwab Corp. pronounced Wednesday a fourth-quarter gain will be harm by accelerated prepayment activity on mortgage-backed bonds in a bonus broker's investment portfolio.
The trend is being driven by declines in seductiveness rates, a association said.
As a result, Schwab expects fourth-quarter earnings per share will be between 4 cents and 6 cents reduce than a 20 cents a share it warranted in a third quarter. That translates to gain per share between 14 cents and 16 cents.
Analysts are expecting, on average, gain of 16 cents a share, according to FactSet.
Schwab also pronounced a net seductiveness margin in a fourth entertain will be reduce than formerly anticipated.
Joe Martinetto, Schwab's arch financial officer, pronounced that item valuations have been underneath vigour in a fourth entertain as U.S. equity markets have remained volatile.
"We trust a incremental vigour on a net seductiveness domain is short-lived and design it to palliate as prepayment activity slows," he said.
Meanwhile, a association pronounced it finished Nov with $1.67 trillion in customer assets, a 10 percent boost from a year earlier, though prosaic contra a Oct 2011 figure.
All told, net new resources brought to Schwab by new and existent clients in Nov totaled $6.0 billion.
Client daily normal trades declined 15 percent from October, when trade activity was towering by a anniversary arise in Schwab Mutual Fund OneSource transactions, a association said.
Daily normal trades were adult 5 percent contra Nov final year, however.
Still, normal daily trades are down this month about 8 percent from November, as customer activity has continued to slow, a association said.
Shares finished unchanging trade on Wednesday down 56 cents, or scarcely 5 percent, during $10.97.
News referensi http://news.yahoo.com/charles-schwab-expects-4q-earnings-trail-3qs-030049012.html
