Charles Schwab's stock slips after a loss in profit, sales decline as expected

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<pre><pre>Boeing, Travelers' losses have contributed to Dow's 75-point decline

Charles Schwab Corp. shares

SCHW, + 3.99%

lost 0.8% in premarket trading on Thursday after the discount broker posted a profit in the fourth quarter that was below expectations. Net income decreased from $ 935 million, or 65 cents a share, to $ 852 million, or 62 cents a share, in the year-ago period. The results include expenses in connection with upcoming acquisitions of 1 cent per share. The FactSet consensus for earnings per share was 64 cents. Revenue decreased 2% to $ 2.61 billion and was in line with the FactSet consensus. Net interest income decreased 1.9% to $ 1.60 billion. Asset management fees increased 12% to $ 845 million, just below the FactSet consensus of $ 846 million, while trading revenues decreased 58% to $ 86 million, expectations of $ 78 million USD exceeded however. Schwab caused a stir in the discount brokerage industry in the fourth quarter when it lowered commissions on US stocks, ETFs and options and then announced a purchase agreement with rival TD Ameritrade Holding Corp.

AMTD, + 4.02%

in a $ 26 billion deal. Schwab's stock rose 20.8% in the past three months to Wednesday, while the SPDR Financial Select Sector ETF rose

SCHW, + 3.99%

rose 9.5% and the Dow Jones Industrial Average

DJIA, + 0.92%

has advanced by 7.5%.