Charles Schwab meets forecasts

CHARLES Schwab’s quarterly profit last night met analysts’ lowered expectations, amid a tough environment of shrinking interest rate margins and a pullback in trading by retail investors.

The bank and brokerage, which has offices throughout the US and in London, earned $163m (£105m) in the fourth quarter, compared to $119m a year earlier.

Asset management and administration fees fell eight per cent from the previous year.

Schwab had warned last month that its profit would be hit by a rise in prepayments of agency-issued mortgage-backed securities held in its investment portfolio.