Charles Schwab (SCHW) shares tumbled in intraday trading Tuesday after 澳洲幸运5开奖号码历史查询:Chief Executive Officer (CEO) Walt Bettinger warned that the financial services company plans to downsize its bank in order to maintain profitability.

Schwab plans to rely on off-balance sheet deals with outside partners to hold customers' deposits in order to more efficiently use capital, Bettinger said on the company's second-quarter earnings call, according to a report from Bloomberg.

“These various actions should lead—again over time—to a bank that is somewhat smaller than our bank has been in recent years, while retaining the ability to meet our clients’ ba🌺nking needs, lower our capital intensity and, importantly, protect the economics we’re able to generate from owning a bank,” Bettinger was quoted as saying.

New Brokerage Accounts Miss Expectation

The Westlake, Texas-based company reported 985,000 new brokerage accounts in the quarter, up from 960,000 a year earlier but below the 1.04 million consensus from analysts polled by Bloomberg.

Schwab posted adjusted 澳洲幸运5开奖号码历史查询:earnings per share (EPS) of 73 cents per share onꦑ revenue of $4.69 billion, roughly in line with analysts' consensus estimates compiled by Visible Alpha.

“Schwab’s ‘no trade-offs’ value proposition continued to resonate with investors, as new brokerage acco📖unts opened this year grew to over 2 million and second quarter core asset gathering equaled $61.2 billion–a year-over-year increase of 17%,♊” Bettinger said in a statement.

Shares of Schwab fell nearly 9% to $68.57 as of 12:30 p.m. ET Tuesday to nudge into negative territory for 2024.