Financial Data and Key Metrics - Revenue in Q2 2024 increased by 1% year-over-year to $4.7 billion [28] - Adjusted expenses in Q2 were up just under 2% year-over-year, but would have been down more than 1% excluding onetime and unusual items [28] - Adjusted pretax margin was roughly 41% and adjusted EPS was $0.73 in Q2 [28] - Total assets dropped by 4% in Q2, driven by tax-related outflows and slower client cash realignment activity [29] - Net new assets year-to-date were over $150 billion, with Q2 asset gathering of about $60 billion, up 17% from the same period last year [10] - New brokerage accounts reached almost 1 million during the quarter [10] Business Line Data and Key Metrics - Managed Investing net flows year-to-date were nearly $25 billion, a 56% increase over last year [19] - Schwab Wealth Advisory grew by 40%, Wasmer Schroeder by 53%, and Schwab Personalized Indexing by 127% [19] - Total assets under management for Wasmer strategies reached $25 billion, with a compound annual growth rate of 23% since acquisition in 2020 [20] - Net flows in Wasmer strategies were $4 billion year-to-date [20] - Equity buy-sell ratio was about 1.1, and daily average trades remained at relatively high levels for Q2 [10] Market Data and Key Metrics - Former Ameritrade retail clients now make up about one-third of overall enrollments in advisory solutions [9] - Promoter Scores for former Ameritrade retail clients increased by about 50 points nine months post-conversion [9] - Promoter Scores for advisory services, including former Ameritrade adviser clients, returned to pre-conversion levels [9] - Client engagement was solid in Q2, with high interest in Managed Investing solutions [10] Company Strategy and Industry Competition - The company is transitioning from the Ameritrade integration, with strong client engagement and progress on strategic focus areas [24] - The company aims to increase emphasis on transactional bank deposits like checking balances to improve liquidity and stabilize the deposit base [15] - The company plans to use third-party banks like TD Bank to extend FDIC insurance, lower capital intensity, and improve liquidity [15] - The company is committed to offering quality lending services, including residential mortgages, HELOCs, and pledged asset lines [14] - The company is investing in technology, including artificial intelligence, to lower costs and improve operational efficiency [18] Management Commentary on Operating Environment and Future Outlook - The company expects full-year revenue to range between flat to up 2% versus 2023 [32] - Adjusted expenses are expected to be approximately 2% higher than 2023, with half of the change due to unanticipated onetime items [32] - The company anticipates a return to normal earnings power, with strong growth in revenue and earnings in the back half of 2024 and beyond [27] - The company expects NIM to reach the mid-2.20s in Q4 and approach 3% by the end of 2025 [33] - The company is confident in its long-term organic growth rate and expects to see 5% to 7% annualized NNA growth from existing and new clients [24] Other Important Information - The company completed the last client transition group from the Ameritrade acquisition in Q2, involving almost $2 trillion in assets and 17 million client accounts [8] - The company is focusing on enhancing the Schwab mobile app, which has a 4.8-star rating on the App Store and was ranked number one by Corporate Insight for the second year in a row [23] - The company is committed to maintaining zero custody fees for RIAs and has no intention of changing that [21] Q&A Session Summary Question: Deposit rates and Fed cuts [38] - The company's scenario assumes a single Fed rate cut in September, with deposit betas expected to be higher in the easing cycle than in the tightening cycle [39] Question: Use of third-party banks [41] - The company is exploring the use of third-party banks to reduce capital intensity and improve liquidity, with economics similar to the IDA agreement with TD Bank [42] - The company does not see the Wells Fargo issue as having meaningful implications for its fiduciary-driven investment advisory solutions [43] Question: Ameritrade attrition and net new assets [44] - The company expects to move Ameritrade clients from being net detractors to contributing at the same level as Schwab clients over time [47] Question: Sequential growth drivers [49] - The company expects sequential growth in Q4 to be driven by a single Fed cut, moderating client cash realignment activity, and continued margin balance growth [51] Question: Repositioning the securities portfolio [55] - The company is cautious about repositioning the securities portfolio to accelerate paydowns of high-cost liabilities, as it could jeopardize client trust [56] Question: Shift to third-party banks [58] - The company is considering a strategic shift to using third-party banks for deposits over the long term, with the goal of reducing capital intensity and improving liquidity [60] Question: Pace of securities maturing [63] - The company expects cash flows off the investment portfolio to be in the range of $10 billion to $11 billion per quarter over the next several quarters [64] Question: Normalized deposit growth framework [66] - The company expects client transactional cash to grow with the growth in accounts and total assets over the long term, with variability influenced by market engagement and rate-driven activity [70] Question: Ameritrade asset pools and bank size [72] - The company brought over about $2 trillion of Ameritrade client assets, with total assets now at $9.4 trillion [73] - The company is optimistic about future growth, with client satisfaction improving dramatically post-conversion [75] Question: Fiduciary accounts and money fund yields [77] - The company does not have the same exposure as Wells Fargo, as cash assets in fiduciary relationships are invested in a sweep government money fund [78] Question: NIM outlook for 2025 [79] - The company expects NIM to approach 3% by the end of 2025, driven by the moderation of client cash realignment activity and the paydown of supplemental borrowing [80] Question: Lending opportunities [82] - The company is focused on expanding its lending capabilities by creating a client-friendly process, with significant enhancements in pledged asset lines and mortgage processes [84] - The company sees lending as a way to deepen relationships with adviser clients and close the gap in lending assets [85]

Facade of Charles Schwab office with visible logo and electronic time and temperature display, ... [+] Rincon Hill, South of Market, San Francisco, California, June 7, 2024. (Photo by Smith Collection/Gado/Getty Images)Gado via Getty ImagesCharles Schwab (NYSE: SCHW) stock gained 10% YTD, as compared to an 18% rise in the S&P500 index. In sharp contrast, Charles Schwab’s peer BlackRock (NYSE: BLK) is up only 3% YTD. Overall, SCHW is scheduled to report its fiscal Q2 2024 results on Tuesday, July 16, 2024. W ...

Charles Schwab (SCHW) is scheduled to report second-quarter 2024 results on Jul 16, before market open. While the company’s earnings are expected to have declined in the quarter on a year-over-year basis, revenues are anticipated to have improved.In the first quarter of 2024, Schwab’s earnings beat the Zacks Consensus Estimate. Results benefited from the solid performance of the asset management business. The absence of fee waivers and solid brokerage account numbers acted as tailwinds. However, lower reven ...

The market expects The Charles Schwab Corporation (SCHW) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other ha ...

Charles Schwab (SCHW) has reported its monthly activity report for May 2024. The company’s core net new assets of $31 billion surged substantially from $1 billion recorded in the previous month and 50% from the prior-year month.Schwab’s total client assets in May 2024 were $9.21 trillion, up 4% from the April 2024 level and 20% from May 2023. Client assets receiving ongoing advisory services were $5.25 trillion, rising 17% from the prior month and 35% year over year.  Schwab’s average interest-earning asset ...

Close-up of sign with logo at Charles Schwab financial adviser branch in Pleasanton, California, ... [+] March 26, 2018. (Photo by Smith Collection/Gado/Getty Images)GettyCharles Schwab stock (NYSE: SCHW) has gained 8% YTD as compared to the 12% rise in the S&P500 index over the same period. In sharp contrast, Charles Schwab’s peer Goldman Sachs (NYSE: GS) is up 20% since the beginning of 2024. Overall, at its current price of $74 per share, SCHW is trading 5% below its fair value of $78 – Trefis’ estimate ...

Core Viewpoint - Shares of Charles Schwab (SCHW) fell 4.6% following a disappointing management outlook for Q2 2024, with adjusted earnings not expected to grow sequentially and modest net interest margin expansion anticipated [1] Financial Performance - For Q1 2024, Schwab reported adjusted earnings of 74 cents per share, below the guidance of 80-90 cents, primarily due to higher funding costs and lower trading revenues [1] - The company projects full-year 2024 adjusted earnings growth at the upper end of the 20-30% range, with 2023 adjusted earnings per share at $3.13, driven by manageable expense growth of approximately 2% and a slowdown in client cash realignment activities [1] Integration and Client Transition - Schwab completed the final round of client account transitions from TD Ameritrade (TDA) on May 13, marking the end of a significant integration process [2] - The company aims to finish remaining integration-related tasks by the end of the year, including decommissioning systems and achieving nearly 20% of the $1.8-$2 billion expense synergy target [2] - Client attrition from TDA is trending below initial projections of 5-6%, with an estimated $500 billion asset capture opportunity by introducing TDA clients to Schwab's broader capabilities [2] Growth Projections - Schwab maintains a long-term growth trajectory of 5-7% in net new assets (NNA), with expectations of 3-5% growth from existing clients and 2-3% from new clients [3] - The company started 2024 positively, gathering approximately $100 billion in core NNA through Q1 [3] - Growth in lending is anticipated with the introduction of a mortgage product and pledged asset line, expecting solid growth as interest rates fall [3] Stock Performance - Over the past year, Schwab's shares have increased by 44.5%, outperforming the industry's growth of 42.5% [3]

Charles Schwab (SCHW) has reported its monthly activity report for April 2024. The company’s core net new assets of $1 billion declined 98% from the previous month’s level but increased 143% from the prior-year month.Schwab’s total client assets in April 2024 were $8.85 trillion, down 3% from the March 2024 level and up 16% from April 2023. Client assets receiving ongoing advisory services were $4.50 trillion, down 3% from the prior month and up 15% year over year.Schwab’s average interest-earning assets of ...

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 March 31, 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) Delaware 94-3025021 (State or o ...

The Charles Schwab Corporation (SCHW) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Shares of this company have returned +4.4% over the past month versus the Zacks S&P 500 composite's -4.2% change. The Zacks Financial - Investment Bank industry, to which Charles Schwab belongs, has gained 0.3% over this period. Now the key question is: Where could the stock be headed in the near term ...