Charles Schwab (SCHW) Fall 2025 Business Update summary

Strategic and client growth highlights

• Opened 1.1 million new brokerage accounts in Q3, bringing total client accounts to 45.7 million, and attracted $137.5 billion in core net new assets, with year-to-date NNA at $356 billion.

• Client engagement remained high, with 1.6 billion total interactions year-to-date, daily average trades above 7 million, and margin balances at a record $97.2 billion.

• Gen Z accounted for nearly one-third of new-to-firm retail households, and 901,000 new-to-firm retail households were added year-to-date, up 18%.

• Managed investing solutions net inflows grew 40% year-over-year, and Pledged Asset Line originations increased 77% versus Q3 2024.

• Legacy Ameritrade clients are now net positive contributors to NNA, with improved satisfaction and increased engagement in broader offerings.

Financial performance and guidance

• Achieved record quarterly net revenues of $6.1 billion, up 27% year-over-year, with adjusted EPS up 70% to $1.31 and GAAP EPS up 77%.

• Pre-tax profit margin reached 49.2% (GAAP) and 51.3% (adjusted), with return on average common equity at 21% and tangible common equity at 38%.

• Asset management and administration fees reached a record $1.7 billion, up 13% year-over-year, and trading revenue rose 25%.

• Guidance for 2025 was raised, with earnings expected to exceed prior scenarios and continued strong client engagement and revenue growth.

• Net interest margin expanded to 2.86%, expected to remain in the 280s basis points, with reinvestment of securities offsetting lower rates.

Capital management and balance sheet

• Reduced bank supplemental funding by $12.9 billion to $14.8 billion, down 85% from peak levels, aided by a $13.5 billion increase in client transactional sweep cash.

• Repurchased $2.7 billion in common stock in Q3 and $4.6 billion year-to-date, with total capital return of $8.5 billion.

• Maintained strong capital ratios, with consolidated Tier 1 Leverage at 9.7% and adjusted Tier 1 Leverage at 7.3%.

• Bank loans to clients increased 19% year-to-date, and margin balances rose 16% from year-end 2024.

• $2.5 billion in preferred redemption completed year-to-date.