12:55 PM EST, 01/21/2025 (MT Newswires) -- Charles Schwab ( SCHW ) reported stronger-than-expected fourth-quarter results on Tuesday amid growth in fees and trading revenue while predicting a top-line acceleration in 2025.

Revenue climbed to $5.33 billion for the three months ended Dec. 31 from $4.46 billion a year ago and topped the $5.2 billion average analyst estimate on FactSet. Adjusted earnings per share rose to $1.01 from $0.68 year over year and beat the Street's $0.91 view.

"Strong client engagement, increased margin utilization, encouraging client cash trends, and record net inflows into our Managed Investing Solutions" fueled the fourth-quarter top-line outperformance, Chief Executive Rick Wurster said in a statement.

Shares of the financial services provider were up 3.5% in midday trade.

Net interest revenue increased to $2.53 billion in the fourth quarter from $2.13 billion the year earlier. Asset management and administration fees jumped 22% to $1.51 billion, which the company called a quarterly record.

Trading revenue and bank deposit account fees advanced 14% and 39%, respectively. Trading activity increased 11% quarter to quarter with client engagement surging after the US presidential election, the company said.

Charles Schwab's ( SCHW ) total assets declined by 3% year over year but were up 3% sequentially. Bank deposits were down 11% on an annual basis but up 5% from the third quarter. Total client assets grew 19% from the same point of 2023 to $10.101 trillion.

Charles Schwab ( SCHW ) expects revenue to advance between 13% and 15% this year from 2024's $19.61 billion, which was up 4% year over year, Chief Financial Officer Mike Verdeschi said on a conference call, according to a FactSet transcript. It sees adjusted EPS in the $4.10 to $4.20 range, implying annual growth of 25% to 30%, he said. The FactSet consensus is for revenue of $22.18 billion and adjusted EPS of $4.01 in 2025.

"We expect strong growth for both revenue and earnings as we project our supplemental borrowing to diminish significantly in 2025 and our investments in deepening client relationships to continue to pay off," Wurster told analysts. The company has a revenue growth opportunity by expanding wealth, banking and trading services, he said.

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