Charles Schwab Corp. (NYSE: SCHW) reported third-quarter results Thursday morning that beat earnings expectations, with revenue landing nearly in line with Wall Street estimates. The stock, however, traded lower in the premarket session.

Earnings Snapshot

Adjusted earnings came in at $1.69 per share, ahead of the analyst consensus estimate of $1.66.

Revenue rose 17% year over year to a record $7.17 billion, just shy of the consensus estimate of $7.19 billion.

Trading And Interest Income Drive Growth

Trading revenue increased 16% to $1.16 billion, powered by stronger client activity.

Net interest revenue climbed 14% to $3.48 billion. Meanwhile, net interest margin improved to 3.04% from 2.88% a year earlier.

Asset management and administration fees rose 14% to $1.91 billion, supported by organic growth and increased demand for wealth management services.

Average daily trading volume reached 10.7 million trades.

Pledged Asset Line balances surged 59% to $37.3 billion, while net flows into Schwab Wealth Advisory increased 55%.

Client Assets Reach $13.33 Trillion

Total client assets grew 15% to $13.33 trillion, while core net new assets jumped 38% to a record $190.4 billion during the quarter.

Schwab added 1.2 million new brokerage accounts, bringing active brokerage accounts to 40.3 million and total client accounts to 48.6 million.

CEO Rick Wurster said core net new assets represented an annualized growth rate of 5.8%.

He highlighted growing demand for Schwab's wealth management, trading and banking services. The company also continues to attract individual investors and registered investment advisers through its expanding offerings.

Deposits And Capital Position

Schwab ended September with $36.7 billion in cash and cash equivalents.

Deposits rose 2% to $244.1 billion, while bank loan balances increased 35% to $72.3 billion.

Client transactional sweep cash balances reached $492.8 billion as of Sept. 30, up $7.1 billion from the previous quarter.

The company also repurchased 4.7 million shares for approximately $500 million during the quarter.

Schwab reported preliminary consolidated Tier 1 leverage and adjusted Tier 1 leverage ratios of 8.9% and 7.0%, respectively.

SCHW Price Action: Charles Schwab shares were down 3.93% at $93.00 during premarket trading on Thursday, according to market data.