Financial Data and Key Metrics Changes - Total net revenues reached a record high of $23.9 billion, up 22% compared to 2024 [21][24] - Adjusted earnings per share were $4.87, representing a year-over-year growth of 50% [4][23] - Adjusted pre-tax profit margin expanded nearly 800 basis points to 50% [23] Business Line Data and Key Metrics Changes - Managed Investing net flows grew 36% over 2024, achieving a new record [3][14] - Bank lending balances reached an all-time high of $58 billion, a year-over-year increase of 28% [24] - Daily average trades reached a record 8.3 million, driving a 22% year-over-year increase in trading revenue [22] Market Data and Key Metrics Changes - The company attracted $519 billion in core net new assets (NNA), a 42% increase over the previous year [3][4] - The average retail client age has fallen to the 40s, with nearly a third of new retail client accounts opened by Gen Z investors [11][46] - The company ended the year with over 46 million client accounts and nearly $12 trillion in total client assets [8] Company Strategy and Development Direction - The company is focused on a holistic view of growth, emphasizing both attracting new clients and deepening relationships with existing clients [9][12] - Investments in wealth services, lending, and trading capabilities are aimed at enhancing client offerings and experiences [12][16] - The acquisition of Forge is expected to enhance access to alternative investments for clients [5][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum from 2025 into 2026, with expectations of organic asset growth around 5% [27][28] - The company anticipates total revenue growth of 9.5%-10.5% in 2026, despite potential pullbacks in trading volumes [29] - Management highlighted the importance of maintaining strong capital levels while returning excess capital to shareholders [26][60] Other Important Information - The company has made significant investments in technology, including leveraging artificial intelligence to improve client service efficiency [18][19] - The adjusted Tier 1 Leverage Ratio finished the year at 7.1%, reflecting strong capital management [25] Q&A Session Summary Question: Balance sheet and asset remixing - Management indicated strong lending opportunities in 2026 and plans to reinvest in the securities portfolio, primarily in U.S. Treasuries [36][38] Question: Alternatives platform engagement - The alternatives program is growing, particularly among higher net worth clients, with expectations of attracting new clients and assets [40][43] Question: Growth trends in Advisor Services vs. Investor Services - Both segments are experiencing strong growth, with retail growth driven by younger demographics and increased engagement [45][46] Question: Lending offerings penetration - There is significant upside potential in the lending business, with low penetration rates among existing clients [53][54] Question: Capital return assumptions into 2026 - Management confirmed that capital will support franchise growth, with a focus on returning capital through dividends and potential buybacks [57][60] Question: Tax-advantaged long-short strategies - The company sees growth potential in tax-advantaged strategies, which are fee-based and support client portfolio management [62][64] Question: Prediction markets interest - Management is open to exploring prediction markets related to financial aspects if there is client demand, but currently sees limited interest [70][73]