| Imagery Source: Wikimedia Commons / Tdorante10 |
| Information Source: The Charles Schwab Corporation |
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Second Quarter Core Net New Assets Equal $80.3 Billion, Up 31% Year-Over-Year
New Accounts Exceed 1 Million and Total Client Assets Reach a Record $10.76 Trillion
Record Quarterly GAAP Earnings Per Share of $1.08, $1.14 Adjusted(1)
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| The Charles Schwab Corporation reported net income for the second quarter totalling $2.1 billion, or $1.08 earnings per share. Excluding $128 million of pre-tax transaction-related costs, adjusted(1) net income and earnings per share $2.2 billion and $1.14, respectively. |
| 2Q25 Client and Business Highlights |
- Total client assets increased 14% year-over-year to a record $10.76 trillion
- Core net new assets of $80.3 billion bring year-to-date asset gathering to $218.0 billion – up 39% year-over-year
- New brokerage account openings increased 11% year-over-year to 1.1 million for the quarter, helping active brokerage accounts and total client accounts reach 37.5 million and 45.2 million, respectively
- Managed Investing Solutions' net inflows grew 37% versus 2Q24
- Margin balances ended the quarter at $83.4 billion – essentially flat quarter-over-quarter – as investors selectively increased leverage while equity markets rebounded following the disruption in early April
- Daily average trading volume remained robust at 7.6 million, up 38% versus 2Q24
- Charles Schwab recognised as Best Investing Platform Overall by U.S. News (3)
- Charles Schwab Bank ranked #1 in J.D. Power’s U.S. Direct Banking Satisfaction Study for the 7th consecutive year (4)
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| 2Q25 Financial Commentary |
- Quarterly net revenues grew year-over-year by 25% to a record $5.9 billion
- Net interest margin expanded sequentially by 12 basis points to 2.65% due primarily to the further reduction of higher cost liabilities and a rebound in securities lending activity
- Client transactional sweep cash balances ended at $412.1 billion, a sequential build of $4.3 billion, reflecting tax seasonality as well as client net equity selling during the period
- Bank Supplemental Funding (2) declined $10.4 billion during the quarter to $27.7 billion at June month-end
- Asset management and administration fees increased by 14% year-over-year to $1.6 billion, powered by organic growth, rebounding equity markets, and sustained product utilisation
- Trading revenue increased 23% versus 2Q24 due to robust volumes
- GAAP expenses for the quarter increased 4% year-over-year; excluding second quarter amortisation of acquired intangibles of $128 million, adjusted total expenses (1) were up 5% relative to 2Q24
- Capital ratios across the firm remained strong, including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) equaling 9.8% and 7.2%, respectively
- Redeemed $2.5 billion Series G Preferred Stock
- Repurchased 3.9 million shares of our common stock for $351 million during the quarter
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| For the full document, click the link below |
| The Charles Schwab Corporation |
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