JUST IN: $11 TRILLION Charles Schwab says interest in Bitcoin is exploding, up +90% over the past yearSchwab will offer Bitcoin and crypto trading in H1 2026 https://t.co/QO1LcrEimd ...

Core Insights - Charles Schwab (SCHW) achieved record net revenues of $6.14 billion for Q3 2025, reflecting a 27% year-over-year increase and surpassing the Zacks Consensus Estimate of $5.95 billion [1][10] - Adjusted earnings per share rose 70% from the previous year to $1.31, exceeding the consensus estimate of $1.23 [1][10] Revenue Growth Drivers - Record net new assets of $137.5 billion were attracted during the quarter, a 44% year-over-year increase, bringing total client assets to an all-time high of $11.59 trillion [2] - Daily average trading volumes increased by 30% year-over-year to 7.42 million trades, leading to a 25% rise in trading revenues to $995 million [3] - Net interest revenues (NIR) grew by 37% year-over-year to $3.05 billion, supported by a net interest margin increase of 78 basis points to 2.86% [4][5] Asset Management and Other Revenue Streams - Revenues from asset management and administration rose 13% to $1.67 billion, driven by strong equity market performance and record adoption of wealth solutions [6] - The company reported a 4% increase in total non-interest expenses to $3.11 billion, with adjusted total expenses rising 5% year-over-year to $3 billion [8] Client Engagement and Market Conditions - The company opened over 1 million new brokerage accounts for the fourth consecutive quarter, indicating strong client engagement [3] - Positive market conditions, including strong equity markets and client optimism, contributed to asset growth and trading activity [7] Market Sentiment - Despite strong financial performance, Schwab's shares experienced a slight decline of almost 1% due to sector-wide concerns regarding regional banks and increasing credit stress [9]

Core Insights - Charles Schwab Corporation reported third-quarter adjusted earnings per share of $1.31, a 70% year-over-year increase, surpassing the analyst consensus estimate of $1.25 [1] - Quarterly sales reached $6.135 billion, reflecting a 27% year-over-year growth, exceeding the expected $6.009 billion [1] Financial Performance - The company experienced record revenue and earnings per share driven by strengthening organic growth trends and increasing adoption of wealth solutions [2] - Client transactional sweep cash increased by $13.5 billion compared to the second quarter, which contributed to a reduction in higher-cost bank funding by $12.9 billion, bringing it down to $14.8 billion at quarter-end [2] Analyst Ratings and Price Targets - Deutsche Bank analyst Brian Bedell maintained a Buy rating on Charles Schwab and raised the price target from $119 to $120 [5] - Keefe, Bruyette & Woods analyst Kyle Voigt also maintained an Outperform rating and increased the price target from $109 to $111 [5]

Core Insights - Charles Schwab reported record third quarter profits of $2.36 billion, with revenue increasing by 27% to $6.14 billion, marking an all-time high for the company [1] - Total client assets rose by 17% year-over-year to a record $11.59 trillion [3] - The company experienced a significant increase in daily average trades, which were up 30% year-over-year [4] Client Engagement and Growth - Schwab added over one million new brokerage accounts for the fourth consecutive quarter, indicating strong client acquisition [4] - The company attributes its growth to delivering value to clients through a combination of digital services and personal support, including 7 million client calls in the last quarter [5][6] - A notable demographic shift is observed, with one-third of new households being Gen Zers under the age of 28, who seek engagement and guidance in their financial lives [10] Competitive Landscape - Schwab leads the retail trading market with 7.4 million daily average trades, significantly outpacing competitors like Robinhood and Morgan Stanley [7] - The company emphasizes its commitment to client service and the provision of a comprehensive trading experience, including live coaching and a robust trading platform [8][9] Market Trends and Client Behavior - Active traders are engaging in strategies such as buying dips and selling rips, while long-term investors are advised on diversification and market timing [13] - The concentration of the S&P 500 index is at a historical high, with the top 10 stocks comprising 38% of the index, prompting discussions on the importance of diversification [14] Investment Opportunities - Schwab is expanding its offerings to include crypto ETFs and private investments, responding to client interest in alternative assets [16][18] - The company reports a 90% increase in visits to its crypto site over the past year, indicating high engagement in this area [17] Credit and Economic Outlook - Schwab's banking operations are designed to lend only against client assets, mitigating credit risk, and the company has not experienced credit issues historically [20][21] - Current economic indicators suggest that there are no systemic credit issues, with low unemployment rates contributing to a stable outlook [22]

Core Insights - The Charles Schwab Corporation (NYSE: SCHW) reported strong earnings growth, surpassing estimates, indicating a positive outlook for the company [1] - The focus of Cash Flow Club is on businesses with robust cash generation and significant durability, which aligns with Schwab's performance [1] Company Performance - Charles Schwab's recent earnings results showed compelling growth, reinforcing its strong cash generation capabilities [1] - The company's valuation remains favorable, suggesting potential for continued investment opportunities [1] Investment Focus - Cash Flow Club emphasizes investing in companies with a wide economic moat and durability, which is reflected in Schwab's business model [1] - The community offers resources such as access to a leader's personal income portfolio targeting a yield of over 6%, highlighting the focus on income-generating investments [1]

Market Analysis & Investment Opportunities - Crypto market experienced a significant liquidation of $150 billion in an hour due to factors like the China-US trade war, US government shutdown, and tax season [1] - Historically, market dips have presented buying opportunities, with those who bought or held during previous dips realizing substantial profits [1] - Despite short-term market volatility, the long-term outlook for crypto remains positive, with potential for Bitcoin to drop to the low $100,000s or high $90,000s before rising again in 6-18 months [1] - Charles Schwab plans to offer spot Bitcoin and crypto trading in 2026, signaling increased mainstream adoption [1] - Bitcoin's current growth is conservative compared to previous halving cycles, suggesting potential for significant future appreciation [1] Institutional Adoption - Institutions now hold 103% of the total Ethereum supply, representing their largest share ever [1] - Wall Street and institutions are increasingly adopting Bitcoin, crypto, and tokenization, driven by the recognition of its superior value transfer and recording system [1] - Memecoins, despite their perceived frivolity, have demonstrated the resilience of the crypto infrastructure, giving institutions confidence in its reliability [1] - 95% of all Ethereum held by public companies was purchased in the past quarter alone, highlighting the recent surge in corporate investment [2] - BlackRock's Ethereum ETF ranks among the top ETFs globally, attracting over $10 billion year-to-date, indicating strong institutional interest in Ethereum [2] ETF Trends - Digital asset ETFs are experiencing tremendous momentum and increased accessibility, driven by approvals on financial platforms in the United States [4][5] - Investors are showing a growing interest in crypto ETFs, with Bitcoin and Ethereum ETFs among the top performers [4]

Executive Summary & Highlights [Third Quarter 2025 Performance Overview](index=1&type=section&id=3Q25%20Performance%20Overview) The Charles Schwab Corporation reported record revenue and earnings for the third quarter of 2025, driven by strong client asset growth, diversified revenue streams, and effective balance sheet management 3Q25 Key Financial Highlights (YoY Change) | Metric | 3Q25 Value | YoY Change | | :-------------------------- | :----------- | :--------- | | Net Income (GAAP) | $2.4 billion | +67% | | Net Income (Adjusted) | $2.5 billion | +61% | | Diluted EPS (GAAP) | $1.26 | +77% | | Diluted EPS (Adjusted) | $1.31 | +70% | | Net Revenues | $6.1 billion | +27% | | Core Net New Assets | $137.5 billion | +44% | - Client transactional sweep cash grew by **$13.5 billion** versus 2Q25, helping to reduce higher cost bank funding by **$12.9 billion to $14.8 billion** at quarter-end[1](index=1&type=chunk)[9](index=9&type=chunk) - During 3Q25, the company repurchased **28.9 million shares** for **$2.7 billion**, bringing year-to-date capital return across all forms to **$8.5 billion**[1](index=1&type=chunk)[9](index=9&type=chunk) [Client and Business Highlights](index=1&type=section&id=3Q25%20Client%20and%20Business%20Highlights) The company achieved record total client assets and strong organic growth in client accounts and managed investing solutions, alongside increased trading activity and industry recognition for trust and service - Total client assets increased **17%** year-over-year to a record **$11.59 trillion**[3](index=3&type=chunk) - Core net new assets of **$137.5 billion** brings year-to-date asset gathering to **$355.5 billion**, up **41%** year-over-year[3](index=3&type=chunk) - New brokerage account openings exceeded **1 million** for the 4th consecutive quarter, pushing active brokerage accounts to **38.0 million** and total client accounts to **45.7 million**[3](index=3&type=chunk) - Managed Investing Solutions net inflows grew **40%** versus 3Q24[3](index=3&type=chunk) - Daily average trading volume was **7.4 million**, up **30%** versus 3Q24[3](index=3&type=chunk) - Charles Schwab was named one of the most trusted financial services companies by Investor's Business Daily and recognized by Kiplinger as **1 in education and service** for 2025[3](index=3&type=chunk) [Financial Commentary](index=2&type=section&id=3Q25%20Financial%20Commentary) Third quarter 2025 saw significant year-over-year growth in net revenues, driven by expanded net interest margin, increased asset management fees, and robust trading activity - Quarterly net revenues grew year-over-year by **27%** to a record **$6.1 billion**[9](index=9&type=chunk) - Net interest margin expanded sequentially by **21 basis points** to **2.86%**[9](index=9&type=chunk) - Asset management and administration fees increased by **13%** year-over-year to **$1.7 billion**[9](index=9&type=chunk) - Trading revenue increased **25%** versus 3Q24 due to robust volumes and stronger client interest in derivatives[9](index=9&type=chunk) - GAAP expenses for the quarter increased **4%** year-over-year; adjusted total expenses were up **5%** relative to 3Q24[9](index=9&type=chunk) - Capital ratios remained strong, with preliminary consolidated Tier 1 Leverage at **9.7%** and adjusted Tier 1 Leverage at **7.3%**[9](index=9&type=chunk) Consolidated Financial Statements [Consolidated Statements of Income](index=4&type=section&id=THE%20CHARLES%20SCHWAB%20CORPORATION%20Consolidated%20Statements%20of%20Income) The consolidated statements of income show a substantial increase in net income and earnings per share for both the three and nine months ended September 30, 2025, primarily driven by higher net interest revenue and asset management fees, despite increased operating expenses Consolidated Statements of Income (3 Months Ended September 30) | Metric (in millions) | 2025 | 2024 | % Change | | :---------------------------------- | :----- | :----- | :------- | | Net Revenues | $6,135 | $4,847 | 27% | | Net Interest Revenue | $3,050 | $2,222 | 37% | | Asset Management and Administration Fees | $1,673 | $1,476 | 13% | | Trading Revenue | $995 | $797 | 25% | | Total Expenses Excluding Interest | $3,114 | $3,005 | 4% | | Net Income | $2,358 | $1,408 | 67% | | Diluted EPS | $1.26 | $0.71 | 77% | Consolidated Statements of Income (9 Months Ended September 30) | Metric (in millions) | 2025 | 2024 | % Change | | :---------------------------------- | :----- | :----- | :------- | | Net Revenues | $17,585 | $14,277 | 23% | | Net Interest Revenue | $8,578 | $6,613 | 30% | | Asset Management and Administration Fees | $4,773 | $4,207 | 13% | | Trading Revenue | $2,855 | $2,391 | 19% | | Total Expenses Excluding Interest | $9,306 | $8,890 | 5% | | Net Income | $6,393 | $4,102 | 56% | | Diluted EPS | $3.33 | $2.05 | 62% | [Financial and Operating Highlights](index=5&type=section&id=THE%20CHARLES%20SCHWAB%20CORPORATION%20Financial%20and%20Operating%20Highlights) This section provides a detailed breakdown of quarterly and year-over-year changes across various revenue and expense categories, performance measures, and financial condition metrics, illustrating the company's operational and financial trends Key Revenue Growth (Q3-25 vs Q3-24) | Revenue Category | % Change vs Q3-24 | % Change vs Q2-25 | | :-------------------------------- | :---------------- | :---------------- | | Net interest revenue | 37% | 8% | | Asset management and administration fees | 13% | 7% | | Trading revenue | 25% | 5% | | Bank deposit account fees | 63% | — | | Total net revenues | 27% | 5% | Key Expense Growth (Q3-25 vs Q3-24) | Expense Category | % Change vs Q3-24 | % Change vs Q2-25 | | :-------------------------------- | :---------------- | :---------------- | | Compensation and benefits | 9% | 8% | | Professional services | 14% | 1% | | Total expenses excluding interest | 4% | 2% | Financial Condition (at Q3-25 quarter end, in billions) | Asset/Liability | Value | % Change vs Q3-24 | % Change vs Q2-25 | | :-------------------------------- | :---- | :---------------- | :---------------- | | Total assets | $465.3 | — | 1% | | Available for sale securities | $62.3 | (31)% | (8)% | | Held to maturity securities | $136.7 | (9)% | (2)% | | Bank loans — net | $53.6 | 24% | 6% | | Bank deposits | $239.1 | (3)% | 3% | | Total liabilities | $415.9 | (1)% | 2% | | Stockholders' equity | $49.4 | 5% | — | - Clients' Daily Average Trades (DATs) were **7,421 thousand**, up **30%** versus 3Q24[16](index=16&type=chunk) Detailed Financial Information [Net Interest Revenue Information](index=6&type=section&id=THE%20CHARLES%20SCHWAB%20CORPORATION%20Net%20Interest%20Revenue%20Information) This section details the composition of net interest revenue, showing average balances, interest revenue/expense, and yield/rate for various interest-earning assets and funding sources Average Interest Earning Assets (3 Months Ended September 30) | Asset Category | 2025 Average Balance (millions) | 2025 Interest Revenue (millions) | 2025 Yield | 2024 Average Balance (millions) | 2024 Interest Revenue (millions) | 2024 Yield | | :-------------------------------- | :------------------------------ | :------------------------------- | :--------- | :------------------------------ | :------------------------------- | :--------- | | Cash and cash equivalents | $24,298 | $264 | 4.26% | $27,623 | $369 | 5.24% | | Receivables from brokerage clients | $90,121 | $1,490 | 6.47% | $73,102 | $1,431 | 7.66% | | Available for sale securities | $69,794 | $360 | 2.05% | $98,645 | $531 | 2.14% | | Held to maturity securities | $137,672 | $587 | 1.70% | $151,004 | $650 | 1.71% | | Bank loans | $51,849 | $557 | 4.27% | $42,653 | $484 | 4.52% | | Total interest earning assets | $419,780 | $3,956 | 3.71% | $419,247 | $3,928 | 3.69% | Average Funding Sources (3 Months Ended September 30) | Funding Source | 2025 Average Balance (millions) | 2025 Interest Expense (millions) | 2025 Rate | 2024 Average Balance (millions) | 2024 Interest Expense (millions) | 2024 Rate | | :-------------------------------- | :------------------------------ | :------------------------------- | :-------- | :------------------------------ | :------------------------------- | :-------- | | Bank deposits | $229,281 | $248 | 0.43% | $248,405 | $841 | 1.35% | | Federal Home Loan Bank borrowings | $7,103 | $79 | 4.35% | $22,621 | $310 | 5.38% | | Long-term debt | $20,204 | $207 | 4.01% | $22,446 | $208 | 3.71% | | Total interest bearing liabilities | $379,376 | $906 | 0.94% | $386,818 | $1,706 | 1.75% | - Net interest revenue for 3Q25 was **$3,050 million**, with a net interest margin of **2.86%**, up from **2.08%** in 3Q24[19](index=19&type=chunk) [Asset Management and Administration Fees Information](index=8&type=section&id=THE%20CHARLES%20SCHWAB%20CORPORATION%20Asset%20Management%20and%20Administration%20Fees%20Information) This section provides a breakdown of asset management and administration fees, categorized by product type, including proprietary and third-party funds, and managed investing solutions, along with their average client assets and fee rates Asset Management and Administration Fees (3 Months Ended September 30, 2025) | Category | Average Client Assets (millions) | Revenue (millions) | Average Fee Rate | | :------------------------------------------------ | :------------------------------- | :----------------- | :--------------- | | Schwab money market funds | $663,218 | $458 | 0.27% | | Schwab equity and bond funds, ETFs, and CTFs | $735,519 | $132 | 0.07% | | Mutual Fund OneSource and other no transaction fee funds | $443,660 | $259 | 0.23% | | Other third party mutual funds and ETFs | $618,032 | $97 | 0.06% | | Total mutual funds, ETFs, and CTFs | $2,460,429 | $946 | 0.15% | | Managed investing solutions (fee-based) | $654,220 | $619 | 0.38% | | Total asset management and administration fees | N/A | $1,673 | N/A | - Total asset management and administration fees increased to **$1,673 million** in 3Q25 from **$1,476 million** in 3Q24, a **13%** year-over-year increase[14](index=14&type=chunk)[22](index=22&type=chunk) [Growth in Client Assets and Accounts](index=9&type=section&id=THE%20CHARLES%20SCHWAB%20CORPORATION%20Growth%20in%20Client%20Assets%20and%20Accounts) This section details the growth and composition of client assets across various product categories and business segments, along with trends in new and total client accounts, highlighting strong organic growth and market appreciation Client Assets (at Quarter End, in billions) | Asset Category | Q3-25 | Q3-24 | % Change vs Q3-24 | | :-------------------------------- | :---- | :---- | :---------------- | | Total client assets | $11,593.9 | $9,920.5 | 17% | | Proprietary mutual funds and CTFs | $936.1 | $791.0 | 18% | | Total Mutual Fund Marketplace | $2,030.9 | $1,875.3 | 8% | | Total ETF assets | $2,871.7 | $2,274.1 | 26% | | Equity and other securities | $4,624.7 | $3,839.6 | 20% | Net Growth in Assets (for Q3-25, in billions) | Metric | Value | % Change vs Q3-24 | | :-------------------- | :---- | :---------------- | | Total net new assets | $134.4 | 48% | | Net market gains (losses) | $702.2 | N/A | | Net growth (decline) | $836.6 | N/A | Client Accounts (at Quarter End, in thousands) | Account Type | Q3-25 | Q3-24 | % Change vs Q3-24 | | :-------------------------- | :---- | :---- | :---------------- | | Active brokerage accounts | 37,963 | 35,982 | 6% | | Banking accounts | 2,150 | 1,954 | 10% | | Workplace Plan Participant Accounts | 5,619 | 5,388 | 4% | | New brokerage accounts (for Q3-25) | 1,143 | 972 | 18% | Monthly Activity Report [Market Indices and Client Assets](index=10&type=section&id=Market%20Indices%20and%20Client%20Assets) This section presents monthly trends for major market indices and client asset movements, including net new assets and market gains/losses, providing a granular view of asset flows and market impact Market Indices (at September 2025 month end) | Index | Sep 2025 | Sep 2024 | Mo. Change | Yr. Change | | :-------------------- | :------- | :------- | :--------- | :--------- | | Dow Jones Industrial Average | 46,398 | 42,330 | 2% | 10% | | Nasdaq Composite | 22,660 | 18,189 | 6% | 25% | | Standard & Poor's 500 | 6,688 | 5,762 | 4% | 16% | Client Assets (in billions of dollars, at month end) | Metric | Sep 2025 | Sep 2024 | Mo. Change | Yr. Change | | :-------------------- | :------- | :------- | :--------- | :--------- | | Beginning Client Assets | 11,228.1 | 9,737.7 | N/A | N/A | | Net New Assets | 45.4 | 30.3 | 5% | 50% | | Net Market Gains (Losses) | 320.4 | 152.5 | N/A | N/A | | Total Client Assets | 11,593.9 | 9,920.5 | 3% | 17% | | Core Net New Assets | 46.2 | 33.5 | 4% | 38% | [Client Accounts and Activity](index=10&type=section&id=Client%20Accounts%20and%20Activity) This section tracks monthly changes in client accounts, including active brokerage, banking, and workplace plan participant accounts, as well as new brokerage account openings and key client activity metrics like cash percentage and derivative trades Client Accounts (at September 2025 month end, in thousands) | Account Type | Sep 2025 | Sep 2024 | Mo. Change | Yr. Change | | :-------------------------- | :------- | :------- | :--------- | :--------- | | Active Brokerage Accounts | 37,963 | 35,982 | — | 6% | | Banking Accounts | 2,150 | 1,954 | 1% | 10% | | Workplace Plan Participant Accounts | 5,619 | 5,388 | — | 4% | Client Activity (September 2025) | Metric | Sep 2025 | Sep 2024 | Mo. Change (bp) | Yr. Change (bp) | | :------------------------------------ | :------- | :------- | :-------------- | :-------------- | | New Brokerage Accounts (thousands) | 384 | 321 | 1% | 20% | | Client Cash as a Percentage of Client Assets | 9.4% | 9.5% | (10) bp | (10) bp | | Derivative Trades as a Percentage of Total Trades | 22.3% | 21.5% | (20) bp | 80 bp | [Selected Average Balances and Net Buy/Sell Activity](index=10&type=section&id=Selected%20Average%20Balances%20and%20Net%20Buy%20%28Sell%29%20Activity) This section provides monthly average balances for interest-earning assets, margin balances, and bank deposit accounts, alongside net buy/sell activity for various investment products like equities, bonds, mutual funds, ETFs, and money market funds Selected Average Balances (September 2025, in millions of dollars) | Metric | Sep 2025 | Sep 2024 | Mo. Change | Yr. Change | | :------------------------------------ | :------- | :------- | :--------- | :--------- | | Average Interest Earning Assets | 423,629 | 420,203 | 2% | 1% | | Average Margin Balances | 94,609 | 72,755 | 5% | 30% | | Average Bank Deposit Account Balances | 79,308 | 82,336 | (1)% | (4)% | Net Buy (Sell) Activity (September 2025, in millions of dollars) | Product Type | Sep 2025 | Sep 2024 | | :-------------------------- | :------- | :------- | | Equities | 8,832 | 5,217 | | Hybrid | (452) | (432) | | Bonds | 12,502 | 11,015 | | Mutual Funds | (4,754) | (1,261) | | Exchange Traded Funds | 25,636 | 17,061 | | Money Market Funds | (517) | 9,672 | Non-GAAP Financial Measures [Explanation of Non-GAAP Measures](index=12&type=section&id=Explanation%20of%20Non-GAAP%20Measures) This section defines the non-GAAP financial measures used by Schwab, including adjustments for acquisition and integration-related costs, amortization of acquired intangibles, restructuring costs, return on tangible common equity, and adjusted Tier 1 Leverage Ratio, explaining their usefulness for investors and management - Schwab uses non-GAAP financial measures to provide useful supplemental information about financial performance, facilitate meaningful comparisons, and offer additional transparency of ongoing operations[29](index=29&type=chunk)[31](index=31&type=chunk) - Acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs are excluded from certain non-GAAP measures to better reflect ongoing business performance, as these costs fluctuate based on timing and are not indicative of underlying operating performance[31](index=31&type=chunk) - Return on tangible common equity is used as a supplemental measure to assess capital efficiency and returns, calculated as adjusted net income available to common stockholders as a percentage of average tangible common equity[31](index=31&type=chunk) - Adjusted Tier 1 Leverage Ratio, which includes accumulated other comprehensive income (AOCI), provides additional information on the company's capital position and is used in managing capital[31](index=31&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP reported results to non-GAAP measures for key financial metrics such as total expenses, net income, pre-tax profit margin, diluted EPS, return on common stockholders' equity, and Tier 1 Leverage Ratio, showing the impact of various adjustments Reconciliation of GAAP to Adjusted Net Income (3 Months Ended September 30, in millions) | Metric | GAAP 2025 | Adjustments 2025 | Adjusted 2025 | GAAP 2024 | Adjustments 2024 | Adjusted 2024 | | :-------------------------------- | :-------- | :--------------- | :------------ | :-------- | :--------------- | :------------ | | Total expenses excluding interest | $3,114 | $(127) | $2,987 | $3,005 | $(153) | $2,852 | | Net income | $2,358 | $98 | $2,456 | $1,408 | $117 | $1,525 | Reconciliation of GAAP to Adjusted Diluted EPS (3 Months Ended September 30) | Metric | GAAP 2025 | Adjustments 2025 | Adjusted 2025 | GAAP 2024 | Adjustments 2024 | Adjusted 2024 | | :-------------------------------- | :-------- | :--------------- | :------------ | :-------- | :--------------- | :------------ | | Diluted EPS | $1.26 | $0.05 | $1.31 | $0.71 | $0.06 | $0.77 | Reconciliation of GAAP to Adjusted Capital Ratios (September 30, 2025) | Metric | CSC (Consolidated) | CSB (Bank) | | :------------------------------------ | :----------------- | :--------- | | Tier 1 Leverage Ratio (GAAP) | 9.7% | 12.4% | | Adjusted Tier 1 Leverage Ratio (non-GAAP) | 7.3% | 8.7% | Additional Information [Fall Business Update](index=2&type=section&id=Fall%20Business%20Update) The company announced it will host a Fall Business Update for institutional investors, providing details on the webcast access - The Charles Schwab Corporation will host its Fall Business Update for institutional investors on **October 16, 2025**, from **7:30 a.m. - 8:30 a.m. CT**[7](index=7&type=chunk) - Registration for the webcast is available at https://www.aboutschwab.com/schwabevents[8](index=8&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains a standard disclaimer regarding forward-looking statements, noting that actual results may differ due to various risks and uncertainties described in SEC filings - The press release contains forward-looking statements regarding client adoption of wealth solutions, organic growth, capital ratios, and return of capital, which are subject to risks and uncertainties[10](index=10&type=chunk) - Important factors causing differences are described in the company's Form 10-K and 10-Q reports filed with the Securities and Exchange Commission[10](index=10&type=chunk) [About Charles Schwab](index=3&type=section&id=About%20Charles%20Schwab) The Charles Schwab Corporation is a leading financial services provider offering a comprehensive range of wealth management, brokerage, banking, and advisory services to individual investors and independent advisors, with significant client assets and accounts - The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, offering wealth management, securities brokerage, banking, asset management, custody, and financial advisory services[11](index=11&type=chunk) Key Client Metrics (as of September 30, 2025) | Metric | Value | | :----- | :---- | | Active brokerage accounts | 38.0 million | | Workplace plan participant accounts | 5.6 million | | Banking accounts | 2.2 million | | Total client assets | $11.59 trillion | [Contact Information](index=3&type=section&id=Contact%20Information) Contact details for media and investor relations are provided for inquiries - Media inquiries can be directed to Mayura Hooper at **415-667-1525** or public.relations@schwab.com[12](index=12&type=chunk) - Investors and analysts can contact Jeff Edwards at **817-854-6177** or investor.relations@schwab.com[12](index=12&type=chunk)

Core Insights - Charles Schwab Corp. reported third-quarter earnings and revenue that exceeded analyst expectations, driven by record client asset growth [1] - Earnings per share were $1.31, surpassing the consensus forecast of $1.23, while revenue increased by 27% year-over-year to $6.14 billion, exceeding expectations of $5.97 billion [1] Financial Performance - Core net new assets reached $137.5 billion during the quarter, marking a 44% increase from the previous year [2] - Total client assets grew 17% to an all-time high of $11.59 trillion [2] - The annualized return on average common equity was 21%, up from 14% in the prior-year period, while the annualized return on tangible common equity rose to 38% from 31% last year [2] Management Commentary - Management highlighted that the results reflect Schwab's ongoing success in expanding its client base and maintaining profitability in a dynamic rate environment [3]

Market Concerns - The market is experiencing heightened concerns, particularly influenced by recent comments from Jamie Dimon and weaknesses observed in firms like Apollo and KKR, leading to a flight to safety reflected in declining yields [2][3] - There is speculation that earnings expectations in certain sectors may have been set too high, contributing to market anxiety [3] Private Credit and Shadow Banking - Discussions at the Deutsche Bank distress conference indicated a consensus among investors that recent issues, particularly related to first brands and tririccolor, are idiosyncratic rather than indicative of broader systemic problems [4][6] - The shadow banking system is characterized by opacity, making it challenging for investors to identify potential risks [5][9] Speculative Fraud and Market Volatility - There are concerns about speculative fraud within public markets, particularly in sectors like quantum technology and meme stocks, which could exacerbate volatility when combined with broader market issues [10] - Comparisons are drawn to the late 1990s tech bubble, with current market dynamics suggesting a potential expectations bubble rather than a complete lack of value [11][12]

Just In: Charles Schwab on track to add spot crypto trading in first half of 2026 per BloombergSchwab has !$10T in assets under management ...