Total compensation and benefits-related expenses
Charles Schwab (SCHW) has seen an increase in its total expenses excluding interest expenses in 2Q17 as compared to 2Q16. In 2Q17, total expenses excluding interest expenses stood at $1.2 billion as compared to $1.1 billion in 2Q16, thus reflecting a rise of 10%. This rise was mainly due to the company’s total compensation and benefits expenses, which rose to $663 million in 2Q17 as compared to $602 million in 2Q16. This rise was due to the rise in salaries and wages and incentive compensation in 2Q17 as compared to 2Q16.
However, the rise in professional service expenses in 2Q17 as compared to 2Q16 also contributed to the rise in Charles Schwab’s total expenses excluding interest during the quarter. The company reported professional service expenses of $144 million in 2Q17 as compared to $125 million in 2Q16, a rise of 15%.
From January 2016 to June 2016, Charles Schwab reported total expenses excluding interest expenses of $2.2 billion. From January 2017 to June 2017, these expenses were at $2.5 billion, a rise of 11%.