Charles Schwab (SCHW) shares tumbled in intraday trading Tuesday after 澳洲幸运5官方开奖结果体彩网: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 vaꦬrious actions shou𝕴ld 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’ banking 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官方开奖结果体彩网:earnings per share (EPS) of 73 cents 🐼per share on revenue of $4.69 billi෴on, 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 broke♓rage accounts opened this year grew to over 2 million and second quarter ꦆcore 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.