Core Insights - Charles Schwab (NYSE: SCHW) significantly exceeded consensus estimates for its second fiscal quarter, driven by higher interest rates, robust asset gathering, and market volatility during the quarter [1] Financial Performance - The financial brokerage reported a notable increase in core metrics, reflecting the positive impact of the aforementioned factors [1]

Investment Rating - The report maintains an optimistic outlook on the Hong Kong stock market, particularly regarding new IPOs and sectors such as stablecoins, new consumption, and innovative pharmaceuticals [3][10]. Core Insights - The report highlights new investment paths following the implementation of stablecoin legislation, emphasizing the positive sentiment towards Hong Kong and U.S. Chinese stocks, with a notable shift towards new concepts and small-cap stocks [3][10]. - There is a sustained bullish view on virtual assets, including stablecoins, with recommendations for traditional virtual asset companies and infrastructure assets related to blockchain technology [3][10]. - The report identifies potential risks associated with overseas Chinese assets, particularly concerning U.S.-China tariff issues, and suggests monitoring the progress of global tariff negotiations [3][10]. Industry Situation Tracking Education - The Chinese education index increased by 2.10% from July 14 to July 18, outperforming the CSI 300 and SSE 50 indices, while underperforming the Hang Seng Tech Index [11]. - Notable stock performances include a 25.09% increase for Fenbi and a 14.37% increase for Dongfang Zhenxuan, while New Oriental saw a decline of 3.39% [11][19]. Luxury Goods - The luxury goods sector faced slight pressure, with a 6% year-on-year decline in Burberry's sales revenue for Q1 of FY2026, although the decline was less severe than previous periods [25]. - The report notes that the jewelry segment remains a growth driver, with Richemont's jewelry sales increasing by 11% year-on-year [31]. Coffee and Tea Beverages - The coffee sector maintains high growth, while the tea beverage sector shows signs of recovery, benefiting from summer demand and delivery subsidies [5][28]. E-commerce - The e-commerce sector is experiencing slight pressure, with a slowdown in overall growth and intensified competition among platforms [5][34]. - The report highlights a 742.95 billion yuan online retail sales figure for the first half of 2025, reflecting an 8.5% year-on-year growth [37]. Streaming Platforms - The streaming media index rose by 7.8%, outperforming both the Hang Seng Index and the Hang Seng Tech Index [38]. - Notable stock performances include a 12.08% increase for NetEase Cloud Music and an 11.37% increase for Tencent Music [38]. Virtual Assets & Internet Brokers - The global cryptocurrency market capitalization reached $392.19 billion, with Bitcoin and Ethereum prices increasing by 0.4% and 19.9%, respectively [40][43]. - The report emphasizes the positive trend in virtual assets following the passage of the GENIUS Act in the U.S., which establishes a regulatory framework for stablecoins [49].

Market Trend - $10 Trillion asset manager Charles Schwab to allow $BTC and $ETH investments [1] Investment Opportunity - Potential bullish trend in $BTC and $ETH due to Charles Schwab's decision [1]

Core Insights - The Schwab U.S. Dividend Equity ETF (SCHD) has seen significant inflows, currently managing $70.1 billion in assets, making it one of the largest ETFs focused on dividend-paying stocks [2][4] - The fund has outperformed its peers in terms of capital inflows, with a 24% growth in its asset portfolio over the past year, compared to 5% for the iShares Core Dividend Growth ETF [4] - While the fund has underperformed the S&P 500 in terms of price gains over the last decade, it offers a higher average dividend yield of 3.1%, leading to a robust total return of 11.1% per year when dividends are reinvested [5][8][7] Fund Performance - The Schwab U.S. Dividend Equity ETF's average annual price gain over the last decade was 7.6%, compared to the S&P 500's 11.5% [5] - The fund's performance period includes significant events such as presidential elections, the COVID-19 pandemic, and inflation cycles, providing a representative view of long-term results [6] - The current dividend yield of the fund is above average at 4%, making it an attractive option for income-focused investors [10] Investment Considerations - The fund's largest holdings include established companies like Coca-Cola, The Home Depot, and Chevron, which are expected to provide consistent dividend payouts [10] - The Schwab U.S. Dividend Equity ETF has a low annual expense ratio of 0.06%, making it a cost-effective investment option [11] - The current period of lagging price performance may present a favorable opportunity for investors to consider adding this ETF to their portfolios [12]

Brokerage Comparison - Fidelity has slight advantages over Charles Schwab for U.S traders and investors [1] - Both brokers offer a similar experience [1]

According to Bloomberg, Charles Schwab CEO Rick Wurster said on the Q2 earnings call that the firm is expanding its digital asset offerings with planned spot trading for Bitcoin and Ethereum, and is exploring stablecoin issuance through a bank consortium or independently. https://t.co/z9VjqWlRkL ...

Financial Performance - Charles Schwab exceeded expectations for both earnings and revenue [1] Market Dynamics - Charles Schwab's shares reached a record high [1]

[2Q25 Earnings Release](index=1&type=section&id=2Q25%20Earnings%20Release) The Charles Schwab Corporation reported record Q2 2025 results, driven by significant revenue and EPS growth, strong client asset accumulation, and effective capital management [Performance Summary](index=1&type=section&id=Performance%20Summary) The Charles Schwab Corporation reported record results for the second quarter of 2025, driven by 25% year-over-year revenue growth. Key achievements include record quarterly GAAP EPS of $1.08 ($1.14 adjusted), a 31% increase in core net new assets to $80.3 billion, and total client assets reaching a new high of $10.76 trillion. The company also demonstrated effective balance sheet management by reducing higher-cost funding and returned $2.8 billion to stockholders through preferred equity redemption and common stock repurchases [Q2 2025 Key Performance Indicators](index=1&type=section&id=Q2%202025%20Key%20Performance%20Indicators) | Metric | Value | YoY Growth | Source | | :--- | :--- | :--- | :--- | | **Revenue** | $5.9 billion (Record) | 25% | President & CEO Rick Wurster | | **GAAP EPS** | $1.08 (Record) | 64% | The Charles Schwab Corporation | | **Adjusted EPS** | $1.14 (Record) | 56% | The Charles Schwab Corporation | | **Core Net New Assets (NNA)** | $80.3 billion | 31% | President & CEO Rick Wurster | | **Total Client Assets** | $10.76 trillion (Record) | 14% | The Charles Schwab Corporation | - **Client Growth:** Opened over **1.1 million** new brokerage accounts, an **11% increase YoY**, bringing total active brokerage accounts to **37.5 million**[1](index=1&type=chunk)[3](index=3&type=chunk)[9](index=9&type=chunk) - **Asset Gathering:** Year-to-date core net new assets reached **$218.0 billion**, up **39% YoY**[1](index=1&type=chunk)[3](index=3&type=chunk)[9](index=9&type=chunk) - **Trading Volume:** Daily average trading volume was robust at **7.6 million**, a **38% increase** compared to Q2 2024[1](index=1&type=chunk)[3](index=3&type=chunk)[9](index=9&type=chunk) - **Balance Sheet Management:** Reduced higher-cost bank supplemental funding by **$10.4 billion** during the quarter[1](index=1&type=chunk)[3](index=3&type=chunk)[9](index=9&type=chunk) - **Capital Return:** Returned approximately **$2.8 billion** to stockholders via **$2.5 billion** in preferred equity redemption and over **$350 million** in common stock repurchases[1](index=1&type=chunk)[3](index=3&type=chunk)[9](index=9&type=chunk) [Financial Highlights Summary (vs. Prior Year)](index=1&type=section&id=Financial%20Highlights%20Summary%20(vs.%20Prior%20Year)) | Financial Metric | Three Months Ended June 30, 2025 | YoY Change | Six Months Ended June 30, 2025 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | **Net Revenues** | $5,851 million | 25% | $11,450 million | 21% | | **GAAP Net Income** | $2,126 million | 60% | $4,035 million | 50% | | **Adjusted Net Income** | $2,222 million | 52% | $4,230 million | 44% | | **GAAP Diluted EPS** | $1.08 | 64% | $2.07 | 54% | | **Adjusted Diluted EPS** | $1.14 | 56% | $2.17 | 48% | [Financial Results](index=4&type=section&id=Financial%20Results) The company's detailed financial statements show significant year-over-year growth in net revenues and net income for Q2 2025. Net revenues rose 25% to $5.9 billion, driven by a 31% increase in net interest revenue and a 14% rise in asset management fees. Total expenses saw a modest 4% increase, leading to a substantial expansion in the pre-tax profit margin to 47.9% from 37.2% in the prior year [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated income statement for Q2 2025 shows substantial year-over-year growth in net revenues and net income, driven by increased interest and asset management fees [Q2 2025 Consolidated Statement of Income (in millions)](index=4&type=section&id=Q2%202025%20Consolidated%20Statement%20of%20Income%20(in%20millions)) | Line Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Total net revenues** | **$5,851** | **$4,690** | **25%** | | Net interest revenue | $2,822 | $2,158 | 31% | | Asset management and administration fees | $1,570 | $1,383 | 14% | | Trading revenue | $952 | $777 | 23% | | **Total expenses excluding interest** | **$3,048** | **$2,943** | **4%** | | **Income before taxes on income** | **$2,803** | **$1,747** | **60%** | | **Net Income** | **$2,126** | **$1,332** | **60%** | | **Net Income Available to Common Stockholders** | **$1,977** | **$1,211** | **63%** | | **Diluted EPS** | **$1.08** | **$0.66** | **64%** | [Financial and Operating Highlights (Quarterly)](index=5&type=section&id=Financial%20and%20Operating%20Highlights%20(Quarterly)) Quarterly trends reveal consistent growth in net revenues, net income, and diluted EPS from Q2 2024 to Q2 2025, alongside stable total assets [Quarterly Performance Trends (Q2-24 to Q2-25)](index=5&type=section&id=Quarterly%20Performance%20Trends%20(Q2-24%20to%20Q2-25)) | Metric (in millions, except per share) | Q2 2025 | Q1 2025 | Q2 2024 | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total net revenues** | $5,851 | $5,599 | $4,690 | 25% | 5% | | **Net interest revenue** | $2,822 | $2,706 | $2,158 | 31% | 4% | | **Total expenses excluding interest** | $3,048 | $3,144 | $2,943 | 4% | (3)% | | **Net Income** | $2,126 | $1,909 | $1,332 | 60% | 11% | | **Diluted EPS** | $1.08 | $0.99 | $0.66 | 64% | 9% | | **Total assets (billions)** | $458.9 | $462.9 | $449.7 | 2% | (1)% | [Net Interest Revenue Information](index=6&type=section&id=Net%20Interest%20Revenue%20Information) Net interest margin expanded significantly in Q2 2025 due to a notable reduction in interest expense on funding sources, despite a slight decrease in average yield on interest-earning assets - Net interest margin for Q2 2025 expanded to **2.65%**, up from **2.03%** in Q2 2024[9](index=9&type=chunk)[19](index=19&type=chunk) This was driven by a significant reduction in interest expense on funding sources, particularly a lower average rate paid on bank deposits (**0.55% vs. 1.31% YoY**) and Federal Home Loan Bank borrowings (**4.48% vs. 5.42% YoY**)[9](index=9&type=chunk)[19](index=19&type=chunk) [Net Interest Revenue Breakdown - Q2 2025 vs Q2 2024 (in millions)](index=6&type=section&id=Net%20Interest%20Revenue%20Breakdown%20-%20Q2%202025%20vs%20Q2%202024%20(in%20millions)) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total Interest Revenue** | **$3,787** | **$3,817** | | Average Interest-Earning Assets | $422,729 | $418,968 | | Average Yield | 3.56% | 3.62% | | **Total Interest Expense** | **$965** | **$1,659** | | Average Interest-Bearing Liabilities | $384,748 | $388,751 | | Average Rate | 1.00% | 1.71% | | **Net Interest Revenue** | **$2,822** | **$2,158** | | **Net Interest Margin** | **2.65%** | **2.03%** | [Asset Management and Administration Fees Information](index=8&type=section&id=Asset%20Management%20and%20Administration%20Fees%20Information) Asset management and administration fees saw a 13.5% increase in Q2 2025, primarily driven by growth in Schwab money market funds and managed investing solutions [Asset Management & Administration Fees - Q2 2025 vs Q2 2024 (in millions)](index=8&type=section&id=Asset%20Management%20%26%20Administration%20Fees%20-%20Q2%202025%20vs%20Q2%202024%20(in%20millions)) | Category | Revenue Q2 2025 | Revenue Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Schwab money market funds | $442 | $357 | 23.8% | | Schwab equity and bond funds, ETFs, CTFs | $122 | $112 | 8.9% | | Mutual Fund OneSource® | $218 | $214 | 1.9% | | Managed investing solutions (Fee-based) | $589 | $510 | 15.5% | | **Total Fees** | **$1,570** | **$1,383** | **13.5%** | [Client Metrics and Business Growth](index=9&type=section&id=Client%20Metrics%20and%20Business%20Growth) Schwab demonstrated strong client growth in Q2 2025, with total client assets increasing 14% YoY to a record $10.76 trillion. The company attracted $73.6 billion in total net new assets for the quarter. Both the Investor Services and Advisor Services segments saw double-digit percentage growth in client assets compared to the prior year [Client Asset Growth (at quarter end, in billions)](index=9&type=section&id=Client%20Asset%20Growth%20(at%20quarter%20end,%20in%20billions)) | Asset Category | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Total client assets** | **$10,757.3** | **$9,407.5** | **14%** | | Investor Services | $6,069.9 | $5,317.5 | 14% | | Advisor Services | $4,687.4 | $4,090.0 | 15% | | Total mutual fund assets | $2,823.9 | $2,535.0 | 11% | | Total ETF assets | $2,615.3 | $2,088.2 | 25% | [Account and Net New Asset Growth (for the quarter ended)](index=9&type=section&id=Account%20and%20Net%20New%20Asset%20Growth%20(for%20the%20quarter%20ended)) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Total net new assets (billions)** | **$73.6** | **$74.2** | **(1)%** | | Investor Services (billions) | $31.2 | $40.1 | (22)% | | Advisor Services (billions) | $42.4 | $34.1 | 24% | | **New brokerage accounts (thousands)** | **1,098** | **985** | **11%** | | Active brokerage accounts (thousands) | 37,476 | 35,612 | 5% | [Growth in Client Assets and Accounts](index=9&type=section&id=Growth%20in%20Client%20Assets%20and%20Accounts) Client assets and accounts demonstrated robust growth in Q2 2025, with significant increases in total client assets and new brokerage accounts across both Investor and Advisor Services - Client assets in proprietary money market funds grew **22% YoY** to **$653.5 billion**, and assets in proprietary ETFs grew **26% YoY** to **$439.7 billion**, indicating strong client demand for Schwab's own products[24](index=24&type=chunk) [Monthly Activity Report (June 2025)](index=10&type=section&id=Monthly%20Activity%20Report%20(June%202025)) June 2025 monthly activity highlights continued growth in total client assets and core net new assets, with strong client net buy activity in equities, bonds, and ETFs [June 2025 Monthly Highlights](index=10&type=section&id=June%202025%20Monthly%20Highlights) | Metric | June 2025 | MoM Change | YoY Change | | :--- | :--- | :--- | :--- | | **Total Client Assets (billions)** | $10,757.3 | 4% | 14% | | **Net New Assets (billions)** | $38.9 | 16% | 17% | | **Core Net New Assets (billions)** | $42.6 | 22% | 46% | | **New Brokerage Accounts (thousands)** | 323 | (4)% | 4% | [Client Net Buy/(Sell) Activity - June 2025 (in millions)](index=10&type=section&id=Client%20Net%20Buy%2F(Sell)%20Activity%20-%20June%202025%20(in%20millions)) | Asset Class | Net Activity | | :--- | :--- | | Equities | $8,987 | | Bonds | $6,050 | | Mutual Funds | ($5,351) | | Exchange Traded Funds (ETFs) | $19,350 | | Money Market Funds | $5,814 | [Non-GAAP Financial Measures](index=12&type=section&id=Non-GAAP%20Financial%20Measures) The company provides non-GAAP measures to offer additional transparency into its ongoing operations by excluding items like amortization of acquired intangibles ($128 million in Q2) and other acquisition or restructuring costs. Key non-GAAP metrics include an adjusted net income of $2.2 billion, an adjusted pre-tax profit margin of 50.1%, and a return on tangible common equity of 35%. The preliminary Adjusted Tier 1 Leverage Ratio, which includes the impact of AOCI, was 7.2% at quarter-end - The company uses non-GAAP measures to provide transparency into ongoing operations by excluding acquisition-related costs, amortization of acquired intangible assets, and restructuring costs[28](index=28&type=chunk)[30](index=30&type=chunk) These measures are used to evaluate operating performance and facilitate period-over-period comparisons[28](index=28&type=chunk)[30](index=30&type=chunk) [Reconciliation of GAAP to Non-GAAP Net Income (Q2 2025, in millions)](index=12&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Net%20Income%20(Q2%202025,%20in%20millions)) | Line Item | Amount | | :--- | :--- | | **Net income (GAAP)** | **$2,126** | | Amortization of acquired intangible assets | $128 | | Income tax effects | ($32) | | **Adjusted net income (non-GAAP)** | **$2,222** | [Reconciliation of GAAP to Non-GAAP Diluted EPS (Q2 2025)](index=12&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Diluted%20EPS%20(Q2%202025)) | Line Item | Amount | | :--- | :--- | | **Earnings per common share — diluted (GAAP)** | **$1.08** | | Amortization of acquired intangible assets | $0.07 | | Income tax effects | ($0.01) | | **Adjusted diluted EPS (non-GAAP)** | **$1.14** | [Key Non-GAAP Ratios (Q2 2025)](index=12&type=section&id=Key%20Non-GAAP%20Ratios%20(Q2%202025)) | Ratio | Value | | :--- | :--- | | **Return on tangible common equity (non-GAAP)** | **35%** | | **Adjusted Tier 1 Leverage Ratio (non-GAAP, Preliminary)** | **7.2%** | [Forward-Looking Statements and Company Information](index=3&type=section&id=Forward-Looking%20Statements%20and%20Company%20Information) This section contains standard disclaimers regarding forward-looking statements related to the company's revenue, scale, efficiency, and capital ratios, noting they are subject to risks and uncertainties. It also provides a general overview of The Charles Schwab Corporation as a leading financial services provider with $10.76 trillion in client assets, detailing its range of services across brokerage, banking, and asset management - The press release contains forward-looking statements regarding the company's revenue model, scale, efficiency, and capital ratios, which are subject to risks and uncertainties detailed in SEC filings (Form 10-K and 10-Q)[10](index=10&type=chunk) - The Charles Schwab Corporation is a leading provider of financial services with **37.5 million** active brokerage accounts, **5.6 million** workplace plan participant accounts, and **$10.76 trillion** in client assets[11](index=11&type=chunk)

Business Strategy - Charles Schwab 将现货比特币和 ETH 交易视为“增长”领域 [1] - Charles Schwab 将“很快”推出相关服务 [1]

Core Viewpoint - The Charles Schwab Corporation is presenting a strong earnings report and providing a strategic and financial update during the 2025 Summer Business Update Conference Call [2]. Group 1: Company Overview - The conference call is led by key executives including the Head of Investor Relations, the President and CEO, and the CFO [2]. - The event is taking place at the company's headquarters in Westlake, which is noted to be warm [2]. Group 2: Earnings and Financial Performance - The company has released a strong earnings report shortly before the conference call, indicating positive financial performance [2]. - The management team is eager to discuss the results and provide additional insights as the company moves into the latter half of the year [2]. Group 3: Conference Call Structure - The conference call includes a structured Q&A session, allowing each participant to ask one question without follow-ups to maximize engagement [3]. - Presentation materials will be made available on the Investor Relations website after the prepared remarks [3].