Robust Trading Activity and Rates to Aid Schwab's Q2 Earnings

Core Viewpoint - Charles Schwab (SCHW) is expected to report increased earnings and revenues for Q2 2025, driven by strong asset management performance and higher net interest revenues, despite rising expenses acting as a headwind [1][10]. Group 1: Earnings and Revenue Expectations - The earnings consensus estimate for Schwab has been revised upward by 1.9% to $1.08 per share, indicating a 48% increase year-over-year [13]. - The sales consensus estimate is pegged at $5.67 billion, suggesting a 20.8% rise compared to the previous year [13]. Group 2: Factors Influencing Q2 Performance - Trading revenues are anticipated to rise by 19.5% year-over-year, with estimates at $928.7 million, supported by solid client activity and market volatility [4][10]. - Net interest revenues (NIR) are expected to surge by 26.5% to $2.73 billion, aided by higher yields on interest-earning assets [6][10]. - Asset management and administration fees are projected to grow by 12.9% to $1.56 billion, driven by strong equity market performance and increased advisory assets [7][10]. Group 3: Expense Outlook - Operating expenses are expected to increase by 6.2% year-over-year to $3.12 billion, influenced by regulatory spending, strategic acquisitions, and marketing efforts [8].