Charles Schwabs semibundled 401(k) program, SchwabPlan, is growing despite sharply lower returns overall for the third quarter, said David S. Pottruck, president and co-CEO. In the companys third-quarter earnings statement, Mr. Pottruck said the SchwabPlan 401(k) program brought in 55 new employers with more than $2 billion in 401(k) assets under management year-to-date Sept. 30. Schwab managed a total of $15 billion in the program for 325,000 participants as of Sept. 30. Overall, however, total client assets from employer-sponsored plans were $88 billion as of Sept. 30, down 21% from a year earlier.
Schwabs operating revenue was down 27% to $3.3 billion for the first three quarters, compared with $4.5 billion for the same period of the previous year. Operating income was down 57% to $298 million from $687 million the year before. Net income was down 63% to $212 million from $579 million the year before.