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Charles Schwab Profit Sinks 27 Percent In 4th Quarter

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(CBS)

(CBS)

SAN FRANCISCO (AP) — Discount broker The Charles Schwab Corp. said its fourth-quarter profit fell 27 percent because of charges related to a settlement over disclosure of the risks of a short-term bond fund.

The San Francisco company said its net income fell to $119 million, or 10 cents per share, for the three months ended Dec. 31.  Without the settlement charges disclosed last week, Schwab said profit rose 33 percent. Revenue rose 14 percent to $1.13 billion.

Wall Street was expecting earnings of 10 cents per share on revenue of $1.11 billion.

Total client assets rose 11 percent to $1.57 billion. The company ended the year with nearly 8 million clients, up 4 percent from a year ago.

Shares edged up 12 cents in pre-market trading to $18.95.

(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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