Charles Schwab (NYSE:SCHW) Q4 2025 Earnings call January 21, 2026 08:30 AM ET Company ParticipantsMike Verdeschi - CFOJeff Edwards - Head of Investor RelationsRick Wurster - President and CEOConference Call ParticipantsBill Katz - AnalystBrennan Hawken - AnalystStephen Turek - AnalystKen Worthington - AnalystAlex Blostein - Lead Capital Markets AnalystBrian Bedell - AnalystDevin Ryan - AnalystDan Fannon - AnalystBenjamin Budish - AnalystMike Brown - AnalystJeff EdwardsGood morning, everyone, and welcome to ...

Charles Schwab (NYSE:SCHW) Q4 2025 Earnings call January 21, 2026 08:30 AM ET Company ParticipantsMike Verdeschi - CFOJeff Edwards - Head of Investor RelationsRick Wurster - President and CEOConference Call ParticipantsBill Katz - AnalystBrennan Hawken - AnalystStephen Turek - AnalystKen Worthington - AnalystAlex Blostein - Lead Capital Markets AnalystBrian Bedell - AnalystDevin Ryan - AnalystDan Fannon - AnalystBenjamin Budish - AnalystMike Brown - AnalystJeff EdwardsGood morning, everyone, and welcome to ...

Summary of Charles Schwab's 2026 Winter Business Update Company Overview - **Company**: Charles Schwab (NYSE:SCHW) - **Event**: 2026 Winter Business Update - **Date**: January 21, 2026 Key Points Financial Performance - **Record Year**: 2025 was a record year for Schwab, with total net revenues reaching **$23.9 billion**, a **22% increase** from 2024 [3][4] - **Adjusted Earnings**: Adjusted earnings per share were **$4.87**, up **50%** year-over-year [4][24] - **Core Net New Assets (NNA)**: Schwab attracted **$519 billion** in core NNA, a **42% increase** over the previous year [3][42] - **New Accounts**: Clients opened **4.7 million** new brokerage accounts, a **13% increase** from 2024 [3] Client Engagement and Growth Strategies - **Client Engagement**: Supported **1.9 billion trades** and **30 million calls** to service centers, with **2.2 billion digital logins**, an **18% increase** from 2024 [6][8] - **Client Accounts**: Ended the year with over **46 million client accounts** and nearly **$12 trillion** in total client assets [9] - **Growth Levers**: Focus on attracting more clients and deepening relationships by serving more of their financial needs [10][12] Innovations and Services - **New Offerings**: Launched several new services, including Advisor ProDirect and a long-short separately managed accounts program [5] - **Acquisitions**: Entered an agreement to acquire Forge to enhance access to alternative investments and made a strategic investment in Carta [5][19] - **Wealth Management**: Expanded wealth services and improved capabilities in tax, trust, and estate planning [14][16] Market Position and Competitive Advantage - **Industry Leader**: Ranked number one among peers by total client assets and daily average trades, which reached **7.7 million** per day [9] - **Cost Efficiency**: Decreased cost per account by **20%** over the last five years, maintaining a competitive edge in expense on client assets [20][21] Future Outlook - **2026 Projections**: Anticipate total revenue growth of **9.5%-10.5%** and full-year organic asset growth of around **5%** [29][60] - **Interest Rates**: Expect interest rates to decrease, with a target Fed funds rate of **3.25%** by the end of 2026 [27] - **Earnings Growth**: Projected adjusted earnings of around **$5.70-$5.80**, representing upper teens year-over-year growth [32] Capital Management - **Capital Return**: Strong capital return strategy with **$11.8 billion** returned to shareholders in various forms [26][27] - **Tier 1 Ratio**: Adjusted Tier 1 leverage ratio finished at **7.1%**, above the target range of **6.75%-7%** [26][61] Additional Insights - **Client Demographics**: Average retail client age has decreased to the **40s**, with a significant portion of new clients being Gen Z [12][43] - **Lending Opportunities**: Significant growth potential in lending, with only **9%** penetration of Pledged Asset Line among ultra-high net worth clients [17][47] - **Alternative Investments**: Growing interest in alternative investments, with expectations of increased client engagement in this area [19][40] This summary encapsulates the key insights and data points from Charles Schwab's 2026 Winter Business Update, highlighting the company's strong performance, strategic initiatives, and future outlook.

Charles Schwab (NYSE:SCHW) Q4 2025 Earnings call January 21, 2026 08:30 AM ET Speaker2Good morning, everyone, and welcome to Schwab's 2026 Winter Business Update. This is Jeff Edwards, Head of Investor Relations, and I'm joined in Westlake today by our President and CEO, Rick Wurster, as well as our CFO, Mike Verdeschi. During our time together this morning, the team will review 2025, a year where the business delivered growth across all fronts and discuss the growing set of opportunities we see to help cli ...