The 2020 results for Charles Schwab are out and it reported net income of $3.3bn for the year, an 11% drop from the $3.7bn in 2019.

For Q4 2020, net income totalled $1.1bn, compared with $698m in the previous quarter and $852m year-on-year.

However, Net revenue for Charles Schwab in Q4 2020 was $4.176bn, a 60% rise year-on-year from the $2.606bn in Q4 2019.

Charles Schwab results for 2020 include TD Ameritrade from closing on October 6 2020 forward.

CEO Walt Bettinger said, “Producing record operating performance and closing the largest brokerage acquisition in history during the fourth quarter of 2020 was an extraordinary capstone to an extraordinary year. Schwab’s unrelenting commitment to seeing through clients’ eyes helped us not only stand tall throughout the events of the past twelve months, but also enabled us to enter 2021 larger, stronger, and more capable of serving clients than ever.”

“The impact of COVID-19, along with social and political turmoil, created an unprecedented combination of personal and macroeconomic challenges for our clients, employees and stockholders alike,” Mr. Bettinger continued.

“The pandemic’s rapid escalation in early 2020 was accompanied by volatile equity markets and further easing of monetary policy. As the year progressed, government aid packages and vaccine developments helped settle the markets, with the S&P 500® eventually erasing its pandemic-related losses to finish up 16% from December 2019. Against this backdrop, client engagement with the financial markets rose to record levels – pro-forma combined new-to-firm households increased more than 175% compared to 2019, with the number of households placing trades up more than 50% year-over-year. Our clients also continued to set numerous single-day trading records, including a peak of 7.8 million trades on November 9. As we collectively focused on helping clients navigate the trials of this environment, they rewarded us with a record $281.9 billion in core net new assets – including a record $119.4 billion in the fourth quarter – exceeding $200 billion for the third consecutive year. At December 31, total client assets reached a record of $6.69 trillion spread across 29.6 million brokerage accounts, up 66% and 140%, respectively, from a year ago.”