U.S. brokerage firm Charles Schwab posts profit beat on robust asset management growth

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U.S. brokerage firm Charles Schwab posts profit beat on robust asset management growth
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Charles Schwab’s net interest revenue tumbled 23.5%, to $2.24-billion in the third quarter, reflecting the impact of client allocation decisions within a higher-interest-rate environment

posted a smaller-than-expected drop in quarterly profit on Monday as strength in asset management fees softened the blow from a fall in its net interest revenue.

However, it is among various financial firms facing a drop in customer deposits as clients have been reallocating their cash to alternatives with better returns to make the most of a high-interest-rate environment. The Westlake, Texas-based company had said in August it would lay off staff and close or downsize some corporate offices as part of its cost-cutting plans.

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