Schwab’s first-quarter 2015 earnings missed the Zacks Consensus Estimate. Results suffered mainly due to higher operating expenses and elevated provisions. However, improved revenue growth along with an increase in total client assets and new brokerage accounts slightly salvaged the results. Though slow client activities contributed to the weak performance, the new fully automated investment advisory service offered by Schwab is expected to boost trading activities going forward. Also, the company’s stable capital position continues to be a positive factor. However, we remain concerned about weak cost control, increased fee waivers and the persistent low interest rate scenario.