Charles Schwab’s fourth-quarter profit grew on higher asset management fees.

(Reuters) – Brokerage firm Charles Schwab said on Tuesday that its profit rose 44% in the fourth quarter as asset management fees jumped, sending its shares up more than 6% in premarket trading.

Why is it important?

The results are the first under new CEO Rick Wurster, who could set the tone for the company after 16 years after Walt Bettinger retires as CEO at the end of 2024.

Schwab’s diversified business model spans brokerage services, asset management, banking and other financial solutions, and its results often reflect the investment landscape.

CONTEXT

Expectations of lower corporate taxes and regulatory controls under new U.S. President Donald Trump have sparked a market rally that has boosted Schwab assets under management and related fees.

In number

The Westlake, Texas-based company’s total client assets rose 19 percent to $10.10 trillion in the three months ended Dec. 31.

Schwab’s asset management and management fees from mutual fund management and currency exchange rose 22 percent to $1.51 billion.

Total net income rose 20 percent to $5.33 billion in the reporting quarter.

The company posted adjusted earnings of $1.01 per share for the fourth quarter, compared with $0.68 per share a year ago.

(Reporting by Atharva Singh and Jaiver Shekhawat in Bengaluru; Editing by Pooja Desai)