Charles Schwab's profit surges as tariff uncertainty fuels strong trading activity

April 17 (Reuters) - Brokerage Charles Schwab SCHW.N reported a near 37% jump in adjusted first-quarter profit on Thursday, driven by upbeat performance in its asset management and trading businesses.

CONTEXT

Uncertainties triggered by back-and-forth tariffs from U.S. President Donald Trump and mounting trade war fears caused volatility in global markets, prompting investors to actively adjust their portfolios. This boosted the wealth management segment and trading desks at firms such as Charles Schwab in the first three months of the year.

WHY IT'S IMPORTANT

Schwab's diversified business model spans brokerage services, asset management, banking and other financial solutions, and its results often reflect trends in the investment landscape.

BY THE NUMBERS

The Westlake, Texas-based company's total client assets increased 9% year-over-year to $9.93 trillion.

Schwab's asset management and administration fees, earned from managing mutual funds and exchange-traded funds, increased 14% to $1.53 billion.

Trading revenue increased 11% to $908 million in the first quarter on higher volumes, the company said.

The company posted an adjusted profit of $2.01 billion, or $1.04 per share, in the quarter, compared with $1.47 billion, or 74 cents per share, a year earlier.