She pointed to commentary from Peter Crawford, Schwab’s CFO, saying the company has “a business model that doesn’t depend on commission revenue, a long-term orientation and a history of being willing to disrupt ourselves based on client needs and competitive dynamics.”
The scrapped commissions equaled $90 million to $100 million in quarterly revenue, which is about 3% to 4% of total net revenue, Crawford noted.
Charles Schwab Corp. shares are down 12% from the start of the year, E-Trade shares are down almost 20% and TD Ameritrade shares are down more than 30%. The S&P 500 SPX, +1.42% is up 15% and the Dow Jones Industrial Average DJIA, +1.42% is up almost 12% over the same period.