Charles Schwab (SCHW) Winter 2025 Business Update summary

2024 performance highlights

• Achieved 20% growth in core net new assets to $366.9B, with new brokerage accounts up 10% to 4.2M and total client assets rising 19% to $10.10T.

• Q4 2024 revenue grew 20% year-over-year to $5.3B, with full-year revenue up 4% to $19.6B; adjusted EPS up 49% to $1.01, GAAP EPS up 84%.

• Managed investing net flows reached a record $55B, and Pledged Asset Line balances surged 69% to $55.2B.

• Completed the largest brokerage integration in industry history, converting Ameritrade clients with asset attrition better than expected.

• Client satisfaction and engagement reached record highs, with all-time high Promoter Scores and recognition for customer service.

Strategic initiatives and investments

• Focused on deepening client relationships, hiring hundreds of new financial consultants, and expanding the branch network in 2025.

• Investing in marketing, trading, wealth, and lending solutions, including alternative investments and enhanced tax, trust, and estate tools.

• Continued investment in technology and AI to drive efficiency, with cost per client account down over 25% in the last decade.

• Expanding 24/5 trading, preparing for spot crypto trading pending regulatory approval, and enhancing RIA support.

• Ongoing innovation in digital ease, omnichannel service, and talent development, with recognition as a top employer.

Financial outlook and guidance for 2025

• Projecting total revenue growth of 13%-15% in 2025, with adjusted earnings expected to grow 25%-30% to $4.10-$4.20 per share.

• Anticipates mid-single-digit expense growth (4.5%-5.5%) and pre-tax margin expansion into the upper 40% range.

• Net interest margin projected to rise to 2.8% by Q4 2025, with continued reduction in bank supplemental funding.

• Capital ratios now within target range (Adjusted Tier 1 Leverage Ratio at 6.8%), supporting increased capital returns.

• Long-term model focuses on sustainable organic growth, revenue diversification, and efficient capital utilization.