UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 1-9700 THE CHARLES SCHWAB CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdictio ...

Key TakeawaysCharles Schwab plans to expand its 24-hour trading, becoming the latest brokerage to embrace round-the-clock markets.Select Schwab clients will be able to trade all S&P 500 and Nasdaq-100 stocks, as well as hundreds of exchange-traded funds, at any time Monday through Friday.The capability will gradually be extended to all clients in 2025. Charles Schwab (SCHW) on Wednesday announced that it plans to expand its 24-hour trading, becoming the latest brokerage to embrace round-the-clock markets. S ...

Charles Schwab Corp. (SCHW) intends to expand its 24-hour trading accessibility to cover all stocks in major U.S. indexes alongside numerous exchange-traded funds (ETFs). These changes are set to begin in roughly two weeks. This was stated by James Kostulias, the company's head of trading services in a statement. SCHW's Rationale Behind This Move The move aims to cater to the rising interest in extended hours trading among retail investors. "About 90% of the customers we surveyed in our newest Traders Senti ...

Core Viewpoint - Charles Schwab reported better than expected earnings for its third fiscal quarter, leading to a more than 6% increase in its share price, indicating strong financial performance and asset gathering capabilities [1]. Group 1 - The company experienced robust top line momentum during the third fiscal quarter [1]. - The strong asset gathering capabilities contributed to the positive earnings report [1].

Core Viewpoint - Charles Schwab had a solid quarter with revenue growth and favorable guidance, but stock price appreciation may be limited due to analyst activity and institutional selling trends [1][3]. Financial Performance - Revenue increased by 5%, driven by client growth and dollar flows, with core net new assets up 10% and cash flow into managed solutions reaching 60% year-to-date [4]. - Trading fees rose by 4%, while asset management fees grew by 21%, setting a new company record [4]. - Adjusted earnings increased by 27% year-over-year, with total expenses falling by 6.5%, indicating improved operational efficiency [4]. Debt Management - The company reduced its bank supplemental funding by nearly $9 billion, or over 10%, although this improvement may be temporary due to increased client sweep balances rather than enhanced company funds [5]. Dividend Information - The annual dividend is $1.00, with a yield of 1.39% and a three-year annualized dividend growth of 11.57% [6]. - The dividend payout ratio is approximately 41.49%, indicating a safe and reliable dividend, with potential for future growth [7]. Stock Performance and Market Sentiment - Charles Schwab stock is at a critical price point, testing resistance around $72.50, with potential resistance levels at $76 and $78 [8]. - Analysts have a "Hold" rating on the stock, with a notable number of lowered price targets compared to increased ones, suggesting limited upside potential [2][3].

Exhibit 99.1 CORPORATION SCHWAB REPORTS THIRD QUARTER RESULTS Total Client Assets Increased 27% Year-Over-Year to a Record $9.92 Trillion Core Net New Assets Equaled $95.3 Billion, Year-To-Date Exceeds $250 Billion Quarterly Net Revenues Grew 5% Year-Over-Year to $4.8 Billion WESTLAKE, Texas, October 15, 2024 – The Charles Schwab Corporation reported net income for the third quarter totaling $1.4 billion, or $.71 diluted earnings per common share. Excluding $153 million of pre-tax transaction-related costs, ...

Better-than-expected earnings results drove the stock higher today.Shares of Charles Schwab (SCHW 6.90%), the brokerage powerhouse that recently surpassed Vanguard to become the largest brokerage firm by assets under management, were moving higher today after the company posted better-than-expected results in its third-quarter earnings report.As of 1:44 p.m. ET, the stock was up 6.8% on the news. Schwab shines in Q3Like the rest of its industry, Charles Schwab seemed to benefit from the ongoing bull market ...

Fall Business Update October 15, 2024 Forward Looking Statements This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements that refer to expectations, projections or other characterizations of future events or circumstances and are identified by words such as "believe," "expect," "will," "may," "should," "could," "estimate," "anticipate," "contin ...

Financial Data and Key Metrics Changes - Revenue increased by 5% year-over-year to $4.8 billion, with adjusted pre-tax income also up by a similar amount, resulting in an adjusted pre-tax margin of over 41% and adjusted EPS of $0.77 [28][29][38] - Year-to-date net new assets crossed over the trajectory of net new assets in 2023, with net new assets more than doubling from the third quarter of last year [11][27] - Margin balances grew over $1 billion to end at $73 billion, reflecting a 17% increase from the end of 2023 [9][27] Business Line Data and Key Metrics Changes - Managed investing or retail advisory flows reached a record of $15 billion during the third quarter, with year-to-date managed investing net flows up 65% compared to last year [9][16] - Former Ameritrade clients contributed positively to net new assets for two consecutive quarters, with 44% of Pledged Asset Line (PAL) balance growth coming from these clients [12][17][56] - Client engagement remained strong across various services, with trades up about 4% from the prior quarter [9][21] Market Data and Key Metrics Changes - The third quarter saw a solid trading environment, with equity markets reaching all-time highs and investor sentiment remaining bullish [8][27] - Client cash realignment activity continued to decelerate, enabling strong growth in overall client cash and transactional cash for the quarter, particularly in September [27][34] Company Strategy and Development Direction - The company is focused on four strategic areas: Scale & Efficiency, Win-Win Monetization, Client Segmentation, and Brilliant Basics, which are expected to drive long-term growth [14][21] - The integration of Ameritrade clients is progressing well, with a focus on enhancing client relationships and service offerings [12][56] - The company aims to maintain a low-cost position as a competitive advantage while continuing to invest in operations and infrastructure [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to historical growth levels, citing the normalization of client cash realignment activity and the reduction of supplemental funding [26][27] - The company anticipates full-year 2024 revenue to increase by 2% to 3% versus 2023, with adjusted expense growth expected to be approximately 2% [38][40] - Management highlighted the importance of client engagement and the positive momentum heading into 2025, despite uncertainties in the macroeconomic environment [39][40] Other Important Information - The company reduced high-cost supplemental funding at the banks by $9 billion, with supplemental funding balances down over 30% from peak levels in May 2023 [32][35] - The adjusted Tier 1 Leverage ratio expanded by over 70 basis points to 6.7%, approaching the operating objective of 6.75% to 7% [36] Q&A Session Summary Question: What drove the improvement in transactional sweep cash and deposits in September? - Management noted that organic growth of cash and variability in client activity contributed to the improvement, indicating a normalization of cash realignment activity [43][44] Question: Thoughts on the securities portfolio and potential restructuring? - Management stated that while restructuring is a topic of interest, it is not currently being pursued to avoid disrupting client relationships, focusing instead on paying down supplemental funding [46][47] Question: Clarification on mid-single-digit expense growth for 2025? - Management confirmed that the mid-single-digit expense growth expectation includes efficiencies realized in 2024 and aims to balance investments for sustainable growth [49][51] Question: Update on organic growth and Ameritrade client normalization? - Management indicated that Schwab-only clients are growing at a historical rate of 5% to 7%, while Ameritrade clients are expected to contribute positively to net new assets over time as they become familiar with the platform [53][55] Question: Comfort level for share repurchases in relation to supplemental borrowing? - Management emphasized the priority of paying down supplemental borrowings before considering share repurchases, with no specific level set for comfort [58][61] Question: Changes to funding strategy and funding arbitrage? - Management explained that diversifying funding sources is essential, with broker-dealer funding being an efficient source to meet client needs while achieving financial outcomes [64][66] Question: Expectations for NIM and long-term growth? - Management acknowledged that NIM is expected to be modestly below previous targets due to lower rate trajectories but anticipates continued expansion in 2025 [70][72] Question: Opportunities for expanding REA custody offerings? - Management highlighted the growth in the Advisor Services business and the potential for monetization through enhanced lending and asset management capabilities, while maintaining the current custody fee model [75][78]

Key TakeawaysCharles Schwab stock jumped to a three-month high after the financial services company reported third-quarter results above what analysts had expected.Revenue and profits rose year-over-year, while net interest income dropped slightly.The investment management firm also lifted its revenue projections for the full year. Charles Schwab (SCHW) shares soared Tuesday as the financial services company reported better third-quarter results than analysts had expected, and also lifted its projections fo ...