Charles Schwab (SCHW) Spring 2025 Business Update summary

First quarter and client growth highlights

• Core net new assets reached $138 billion, up 44% year-over-year, with 1.2 million new accounts opened and record engagement in wealth solutions and trading activity.

• Managed investing net flows rose 15%, assets under management in holistic wealth solutions neared $500 billion, and daily average trades increased 24% to 7.4 million.

• Retail NNA grew 50% year-over-year, with Ameritrade client satisfaction and engagement rising as integration effects faded.

• New-to-firm households increased 14%, with 33% of new clients under 30 and nearly 60% under 40, reflecting a diverse and growing client base.

• April saw record trading days and heightened digital engagement, with new account openings two to three times higher than usual.

Financial performance and capital management

• Revenue grew 18% year-over-year to $5.6 billion, and adjusted EPS increased 41% to $1.04, with a 46.2% adjusted pre-tax profit margin.

• Net interest margin expanded to 2.53%, and asset management fees grew 14% to $1.5 billion.

• Bank supplemental funding was reduced by $11.8 billion to $38.1 billion, a 46% decrease from Q1 2024.

• Tier 1 Leverage Ratio improved to 9.9% (GAAP) and 7.1% (adjusted), supporting capital flexibility.

• Quarterly common dividend increased by 8% to $0.27 per share, and 19.2 million shares were repurchased for $1.5 billion.

Strategic initiatives and innovation

• Expanded branch network with 16 new branches planned for 2025 and 250 new financial and wealth consultants to be added.

• Launched new wealth solutions, including retail alternatives, discretionary options, and a strategic investment in digital estate planning via wealth.com.

• Rolled out 24x5 trading on Thinkorswim, AI-powered support tools, and continued digital process enhancements.

• Strong engagement in crypto ETFs and related products, with plans to launch direct spot crypto capabilities within 12 months.

• Schwab was named #1 Overall Broker by StockBrokers.com for 2025.