Charles Schwab Corp's (SCHW.O) third-quarter profit beat expectations, but shares of the largest U.S. online brokerage slipped in a tumbling market on Wednesday as investors worried about a declining stable of assets under management.
The revenue Schwab derives from assets was hit by recent market turmoil. However, the company still managed to add new client assets, and the market turmoil also boosted a key trading measure in September.
The company's stock was down 1 percent, outperforming its two closest peers. The shares dropped 10 percent on Tuesday.
Because Schwab's business model relies more heavily than its rivals on asset management, worries persist that its managed assets will drop further along with the market.
The results also included an $8 million charge related to a lawsuit centered on its ultra-short YieldPlus bond funds. The suit, filed this year, claims the company misled investors or omitted information in marketing the funds, which were exposed to subprime mortgages.
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