Schwab's Client Assets Up 15.3% Y/Y in August 2025: What's Driving It?

Core Insights - Charles Schwab (SCHW) reported total client assets of $11.23 trillion in August 2025, reflecting a 15.3% increase year-over-year and a 2.4% increase from July 2025 [1][9] - The company continues to benefit from market volatility, strong asset gathering, and client engagement, leading to increased revenues despite lower fees on certain products [2] - Over the past five years, Schwab's total client assets have experienced a compound annual growth rate (CAGR) of 20.1%, driven by acquisitions and market appreciation [3] Financial Performance - Core net new assets reached $44.4 billion, a 35.4% increase from the previous year but a 5.3% decline from July 2025 [1][9] - The Zacks Consensus Estimate for 2025 revenues is $23.42 billion, indicating a year-over-year growth of 19.4% [4] - Average interest-earning assets were $417.2 billion, showing a slight decline from previous periods, while average margin balances increased by 23.3% year-over-year [7] Client Engagement - Schwab opened 382,000 new brokerage accounts in August 2025, marking a 17.9% increase year-over-year [8][9] - Active brokerage accounts totaled 37.8 million, up 5.4% from the previous year [8] - Client banking accounts reached 2.1 million, reflecting a 10.2% increase year-over-year [8] Competitive Landscape - Schwab's competitor, Robinhood, reported a significant increase in total platform assets, which surged 112% year-over-year [10] - Interactive Brokers also saw a year-over-year rise in client Daily Average Revenue Trades (DARTs) by 29% in August 2025 [12]