Latest news with #CharlesSchwabCorp
Vancouver Sun
23-05-2025
- Business
- Vancouver Sun
TD Bank cutting 2% of workforce as part of restructuring effort
TD Bank Group said Thursday that it's cutting about two per cent of its workforce as the bank works to reduce costs and refocus spending under new leadership. The job cuts amount to a little over 2,000 employees based on the roughly 101,800 employees it had last year. TD made the announcement as it reported a second-quarter profit of $11.1 billion, though earnings included an $8.6 billion after-tax boost from the sale of its shares in the Charles Schwab Corp. The share sale, and the job cuts, come as TD continues to work to move past its massive anti-money laundering oversight scandal that saw it pay over US$3 billion in fines last year, led U.S. regulators to put limits on its assets there, and resulted in former CEO Bharat Masrani stepping down. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Current chief executive Raymond Chun, who took on the role at the start of the second quarter, said the bank is working to turn the page. 'We are structurally reducing costs across the bank by taking a disciplined look at our operations and processes,' said Chun on an earnings call Thursday. 'I want to thank our colleagues across the bank for their tremendous dedication and efforts. Together, we are writing the next chapter of this great institution's story.' The job cuts come as part of a wider restructuring that will see the bank also cut back on some real estate, wind down some business and write off some assets as part of its strategic review, said chief financial officer Kelvin Tran. He said the bank will look to achieve the job cuts whenever possible through attrition and will also shift employees to areas where it's working to expand its capabilities. TD took a $163 million pre-tax charge in the quarter from the restructuring, mostly from real estate, while it expects around $650 million in pre-tax charges over the next several quarters from severance and other costs. It said the restructuring should lead to around $600 million in annual pre-tax savings when complete, money the bank plans to plow back into the business such as artificial intelligence and technology, said Tran. 'Through this restructuring program and the strategic review more broadly, we are innovating to drive efficiency and structurally reduce the bank's cost base,' he said. The moves also come as companies everywhere grapple with macroeconomic uncertainty and hesitant consumers and businesses. Chun noted housing activity was down in the quarter, while the bank has also seen moderated foreign currency spending as consumers are more cautious, especially with cross-border purchases. But the bank's provisions for potentially bad loans rose only modestly in the quarter, up $103 million from the previous quarter to $1.2 billion, or up $211 million from the same quarter last year. The provisions build was lower than analysts expected, helping TD's adjusted earnings of $1.97 per diluted share easily beat the $1.76 per share profit analysts had expected, according to LSEG Data & Analytics. The measure was still down from the $2.04 a share the bank made in the same quarter last year. Jefferies analyst John Aiken said in a note that TD came in ahead of expectations in most segments, though he wonders if the market will see the provisions as enough for the uncertainty ahead. TD said the provisions increase was related to policy and trade uncertainty, while it otherwise would have likely seen rates potentially coming down as consumers benefit from lower interest rates. Revenue for the quarter totalled $22.9 billion, up from $13.8 billion in the same quarter last year. TD said its Canadian personal and commercial banking business earned just under $1.7 billion in its latest quarter, down from just over $1.7 billion in the same quarter last year as it saw higher provisions for credit losses and non-interest expenses, partially offset by higher revenue. TD's U.S. retail operations earned $120 million in the second quarter, down from $507 million a year earlier. The bank's wealth management and insurance business earned $707 million in its latest quarter, up from $621 million a year ago. TD's wholesale banking division earned $419 million, up from $361 million in the same quarter last year. Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our daily newsletter, Posted, here .
Yahoo
22-05-2025
- Business
- Yahoo
TD Bank profit dips, but still beats expectations
Toronto-Dominion Bank posted slightly lower second-quarter profits as it increased its provisions for credit losses amid an uncertain economy impacted by tariffs, but it still beat analysts' expectations overall. Its net income for the three months ending April 30 was $11.1 billion, compared to $2.5 billion during the same period a year ago, resulting in net earnings per share of $6.27. The 334 per cent increase reflects the bank's sale of its remaining equity investment in Charles Schwab Corp. earlier this year. Its adjusted net income was $3.6 billion, compared to $3.78 billion a year ago, resulting in adjusted earnings per share of $1.97, topping analysts' expectations of about $1.78 per share. Chief executive Raymond Chun said TD's results were strong, but acknowledged the current economic environment was uncertain. 'We are operating in a fluid macroeconomic environment,' he said in a statement. 'As we navigate this period of uncertainty, TD is very well-capitalized, prepared for a broad range of economic scenarios and remains focused on the needs and goals of our clients.' TD is the first of Canada's six biggest banks to release its second-quarter results. The earnings are often considered a signpost for how the country's economy is doing, but this is the first time the tariffs imposed by the United States on an array of Canadian exports will have an effect. The levies were imposed on March 4 and the Big Six earnings will cover the three-month period ending April 30. As a result, analysts are keeping an eye on the amount of money the banks keep aside to tackle loans that may potentially go bad, also known as provisions for credit losses (PCLs). TD increased its PCLs to $1.3 billion, up from about $1.2 billion in the previous quarter and about $1 billion a year ago. The bank's net income from its Canadian personal and commercial segment declined by four per cent to about $1.66 billion as a result of the higher provisions and non-interest expenses, TD said. Canada's second-largest bank has undergone a series of changes since it was fined $3.1 billion and ordered by U.S. regulators to cap the expansion of its retail banking business in that country last year for failing to prevent money laundering at its branches there. As part of a strategic review, the bank has now sold its entire ownership stake in Charles Schwab to free up about $20 billion. • Email: nkarim@ Sign in to access your portfolio
Yahoo
21-04-2025
- Business
- Yahoo
Charles Schwab Q1 ETF Assets Jump 16% From Last Year
Charles Schwab Corp. (SCHW), the fifth-largest U.S. ETF issuer, said assets in its exchange-traded funds rose 16% since last year's first quarter as flows into its biggest funds jumped. Schwab, which manages 33 ETFs, said in an April 17 statement that assets in its proprietary ETFs jumped to $398.2 billion from $342.9 billion at the end of last year's first quarter. Since the previous quarter ended, assets inched up 1% from $395 billion, the Westlake, Texas-based company said. Assets gained year over year as broad equity indexes jumped, with the S&P 500 notching a 25% total return last year. Inflows slowed as markets dropped this year, however, as fears of recession and inflation sparked by President Donald Trump's trade war have pushed the S&P 500 10% lower so far in 2025. Investors were met with 'an increasingly uncertain environment' in the first quarter, Schwab Chief Executive Officer Rick Wurster said in the statement. As markets tumbled in the first quarter and investors moved money into safer investments, Schwab's largest ETF, the $64.9 billion Schwab US Dividend Equity ETF (SCHD), pulled in $3.8 billion. That fund pulled in $12.1 billion since last year's first quarter. It includes companies with 10-year histories of paying dividends, which are widely considered safer investments. As markets became increasingly volatile during the first quarter, many investors chose to buy stock funds as prices dropped, and Schwab's second-largest ETF, the $47.5 billion Schwab U.S. Large-Cap ETF (SCHX), pulled in $812 million. Still, that fund has dipped 10% this year. Net purchases of ETFs at Schwab dropped 17% from the fourth quarter, falling to $63.1 billion from $76.2 billion. Source: data Schwab clients' portfolios grew fatter year over year, the company said, with the average client's assets up 15% to $2.3 million. That was mostly due to a 22% jump, to $658,588, in average holdings of ETFs, collective trust funds, and equity and bond funds. The U.S. ETF industry's overall inflows dipped 32% from $427 billion in last year's fourth quarter to $291 billion during the first quarter, State Street said last week, citing Morningstar Data. Still, they jumped 41% from last year's first-quarter total of $191 | © Copyright 2025 All rights reserved
Yahoo
10-03-2025
- Business
- Yahoo
Bullish Signal Has Never Failed This Bank Stock
Charles Schwab Corp (NYSE:SCHW) is tumbling alongside other , as economic uncertainty and persistent selling pressure weigh on the financial sector. With Wall Street on edge over tariff negotiations and recession concerns, traders are keeping a close eye on bank stocks for potential value opportunities amid the volatility. On the charts, has erased its 11.8% January gain and is now down 4.1% year-to-date, on track for its 11th loss in 13 sessions. Last seen 4.9% lower at $70.95, the stock is within striking distance of its 260-day moving average, a historically bullish level. According to Schaeffer's Senior Quantitative Analyst Rocky White, SCHW tested this trendline five times in the past three years, and each time, the stock was higher one month later with an average 8.4% gain. A similar rebound from current levels would place the equity just below $77, approaching its Feb. 11, 13-month high of $84.50. An unwinding of bearish sentiment in the options pits could provide additional tailwinds. Charles Schwab stock's 50-day put/call volume ratio of 1.39 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 90th percentile of the past year, signaling an extreme preference for puts. Additionally, SCHW's of 91 out of 100 suggests the stock tends to outperform volatility expectations, making it an appealing setup for premium buyers. Sign in to access your portfolio
Yahoo
14-02-2025
- Business
- Yahoo
Schwab Expands 24-Hour Trading to S 500, Nasdaq-100 Stocks
Charles Schwab Corp. (SCHW) customers can now trade S&P 500 and Nasdaq-100 stocks around the clock on weekdays, including exchange-traded funds, through expanded overnight trading, according to a company announcement Wednesday. The $10.1 trillion asset manager has enabled trading in these major indices through its thinkorswim platform, the announcement said. The expansion comes as global market events increasingly affect U.S. stocks outside regular trading hours, potentially affecting millions of retail investors who previously had limited ability to react to overnight market moves. 'Market-moving news doesn't wait for standard market hours, and retail traders know what a difference it can make to have access to the markets when volatility spikes,' James Kostulias, managing director and head of trading services at Charles Schwab, said in the announcement. The move follows a successful pilot program that ran from November through January, according to the announcement. During the pilot, trading activity concentrated between 8 p.m. to 9 p.m. and 3 a.m. to 4 a.m. The shift toward 24-hour trading gained momentum after TD Ameritrade, now owned by Schwab, pioneered 24/5 trading in 2018 with approximately two dozen ETFs, according to the announcement. The Securities and Exchange Commission approved an application for 24X National Exchange to operate a U.S. stock exchange that trades between 4 a.m and 7 p.m. on weekdays and from 8 p.m. Sunday through 7 p.m. Friday, allowing nearly continuous trading throughout the week. Tesla Inc. (TSLA), Nvidia Corp. (NVDA), Palantir Technologies Inc. (PLTR), MicroStrategy Inc. (MSTR), and Advanced Micro Devices Inc. (AMD) emerged as the most actively traded securities during the overnight pilot period, according to the release. The expansion enables Schwab to process approximately an average of 6 million daily trades, double the volume of competitors who publicly share the figures, the announcement said. Schwab's products include more than 33 ETFs in fixed income and equities, including the Schwab U.S. Large-Cap ETF (SCHX) and Schwab Ultra-Short Income ETF (SCUS), as well as access to thousands of other ETFs. Schwab was changing hands just below $82 per share, down 1.5% in Wednesday afternoon | © Copyright 2025 All rights reserved Sign in to access your portfolio
