|
NEW YORK (AP) - Charles Schwab Corp. executives like to stress their shift to depending less on volatile trading commissions as a source of revenue. Now, the recent stock-market swoon may give investors some insight into how well the strategy is faring.
The San Francisco company is best known as a discount-brokerage pioneer that helped bring cheap trades to the masses, especially through its Web site. But in recent years, Schwab's reliance on trades has ebbed: Last year, trading revenue made up 18.2 percent of overall net revenue, down from 21.5 percent in 2005.
Some of this is due to Schwab's recent cuts in trading fees, which were intended to make the firm more appealing to price-conscious investors. But Schwab also has been able to pump more money from other revenue streams: Asset-management and administration fees grew by 16.2 percent last year, while net interest revenue rose 40.3 percent.
|