Charles Schwab(SCHW) - 2025 Q1 - Quarterly Results

Financial Performance - 1Q25 net revenues reached a record $5.6 billion, an 18$1.9 billion, with GAAP earnings per share of $0.99, up 46$5,599 million, an 18% increase compared to Q1 2024[14] - Net income available to common stockholders was $1,796 million, a 44$1,299 million in Q1 2024[14] - Earnings per common share increased by 43% to $0.99, compared to$0.71 in Q1 2024[14] - For the three months ended March 31, 2025, adjusted net income (non-GAAP) was $3,014 million, compared to$2,802 million for the same period in 2024, reflecting a year-over-year increase of 7.5%[29] - The adjusted diluted EPS (non-GAAP) for the three months ended March 31, 2025, was $1.04, up from$0.74 in the same period of 2024, representing an increase of 40.5%[30] - The pre-tax profit margin (GAAP) for the three months ended March 31, 2025, was 43.8%, up from 37.9% in the same period of 2024[30] Client Assets and Accounts - Total client assets increased 9% year-over-year to $9.93 trillion[2] - New brokerage account openings rose 8$9,929.7 billion, but increased by 9% year-over-year[21] - Active brokerage accounts grew by 5% year-over-year to 37,011 thousand accounts[21] - The number of active brokerage accounts reached 37,011 thousand, marking a 5% increase from the previous year[22] Revenue and Expenses - Total expenses excluding interest rose by 7% to $3,144 million, compared to$2,942 million in Q1 2024[14] - Total interest-earning assets for the three months ended March 31, 2025, were $427.265 billion, generating interest revenue of$3.757 billion with an average yield of 3.52%[17] - Net interest revenue increased by 21% to $2,706 million from$2,222 million in Q1 2024[14] - Total interest-bearing liabilities amounted to $389.770 billion, with interest expense of$1.051 billion and an average rate of 1.09%[17] Market Activity - Daily average trading volume increased by 17% quarter-over-quarter due to heightened market volatility[2] - Clients' Daily Average Trades (DATs) increased by 24% to 7,391 thousand from 5,697 thousand in Q1 2024[14] - Total net buy activity in equities was $10,379 million, a significant increase from previous months[23] - Exchange-traded funds saw net buy activity of$19,108 million, indicating strong investor interest[23] Capital Management - The quarterly common stock dividend was increased by 8% to $0.27 per share[7] - Capital return to stockholders included repurchasing$1.5 billion worth of common stock[1] - Average common stockholders' equity increased to $39,752 million for the three months ended March 31, 2025, from$32,493 million in 2024[32] Asset Management - Total asset management and administration fees reached $1.530 billion for the three months ended March 31, 2025, compared to$1.348 billion in the same period of 2024[19] - Average client assets for managed investing solutions increased to $710.925 billion, with revenue of$569 million and a fee of 0.32%[19] - Securities lending revenue for the three months ended March 31, 2025, was $60 million, down from$76 million in the previous year[17] Other Financial Metrics - The return on average common stockholders' equity was 18% for Q1 2025, consistent with Q4 2024[14] - Cash and cash equivalents decreased by 17% to $35.0 billion from$42.1 billion in Q4 2024[14] - Total assets decreased by 1% to $462.9 billion compared to$479.8 billion in Q4 2024[14] - Average yield on cash and cash equivalents decreased to 4.31% in Q1 2025 from 5.31% in Q1 2024[17] - The average yield on held to maturity securities was 1.72% for the three months ended March 31, 2025, compared to 1.75% in the previous year[17]