Dallas, Texas 01/30/2014 (FINANCIALSTRENDS) – Ever since, Charles Schwab Corp (NYSE:SCHW) the $31.79 billion market capped holding firm for financial companies engaged in securities brokerage and financial services reported its fourth quarter and full year results for 2013, the stock has taken a beating at the browsers. It has shed close to 5.26 percent of its market value in past two weeks, since the earnings call to settle at $24.66 per share as of close of business on 29th January.
The dip in valuation comes as a rude surprise to many of the stock holders of this discount broker, since the firm had reported a 57 percent increase in its quarterly profit to $319 million. This huge jump in profits had been linked by the management of Charles Schwab Corp (NYSE:SCHW) to more commissions and fees being earned for asset management. Thanks to this huge surplus, the financial firm had disclosed that it has set aside close to $297 million towards distribution of earnings to common stock owners. For the full year operations, it reported a 15 percent increase over its previous year’s earnings to reach $1.1 billion net income in 2013.
Ascribing this big jump in profitability at Charles Schwab Corp (NYSE:SCHW) to its innovative “Through Clients Eye Approch” , Its Cheif Executive Officer Walt Bettinger has been quoted commented that, “After a long period of progress masked by environmental headwinds, our standout financial performance in 2013 more clearly reflected the significant growth we’ve achieved with our “through clients’ eyes” strategy. Our contemporary full-service investing model helped drive further expansion of our client base, leading to $5.4 billion in net revenues and net income that exceeded $1 billion for the first time since 2008.”
Providing their insights into the fiscal year 2014 estimates, Charles Schwab Corp (NYSE:SCHW) executives have alluded to the healthy balance sheet and big increase in cash flow to forecast “strong business growth primarily driven by diversification of revenue streams and buttressed by a strict enforcement of discipline on expenses.