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 ...

Summary of Charles Schwab (SCHW) 2025 Update / Briefing Company Overview - **Company**: Charles Schwab (SCHW) - **Date of Update**: July 18, 2025 - **Key Speakers**: Rick Worcester (President and CEO), Mike Pradeshi (CFO), Jeff Edwards (Head of Investor Relations) Key Industry Insights - **Core Net New Assets**: Reached $218 billion in the first half of 2025, up 39% year-over-year [4][23] - **New Brokerage Accounts**: 1.1 million new accounts opened in Q2 2025, an 11% increase from 2024 [10] - **Daily Average Trades**: Increased to 7.6 million in Q2 2025, a 38% year-over-year growth [11][25] - **Margin Balances**: Reached $83.4 billion, following record trading days [5][28] - **Revenue Growth**: Total revenue for Q2 2025 was $5.9 billion, up 25% year-over-year [11][25] - **Earnings Per Share**: Adjusted EPS for Q2 2025 was $1.14, a 56% increase from the previous year [11][27] Strategic Focus Areas 1. **Client Engagement**: Schwab is deepening relationships with clients, leading to increased engagement across wealth, banking, trading, and asset management [5][9] 2. **Digital Assets**: Schwab is a leader in crypto ETPs with over $25 billion in client assets, representing about 20% of the total market. Plans to launch spot trading for Bitcoin and Ethereum are underway [15][42] 3. **Growth Initiatives**: The company is focused on attracting net new assets and enhancing client services through various strategic initiatives, including the launch of new products and capabilities [16][21] Financial Performance Highlights - **Revenue Drivers**: - Net interest revenue increased by 31% year-over-year due to reduced high-cost borrowings and increased client transactional activity [25] - Asset management and administration fees reached $1.6 billion, a 14% increase year-over-year [25] - **Expense Management**: Adjusted expenses were up 5% year-over-year, reflecting investments in growth and efficiency [26] - **Capital Return**: The company returned $5.3 billion in capital through dividends and stock repurchases in the first half of 2025 [30] Future Outlook - **2025 Financial Scenario**: - Anticipated total revenue growth of 18.5% to 19.5% for the full year [32] - Expected net interest margin of 2.65% to 2.75% [32] - Projected adjusted earnings in the range of $4.55 to $4.65 per share, indicating potential year-over-year growth in the high 40% range [34] - **Market Conditions**: The company is prepared to navigate a range of macroeconomic factors that may influence client cash allocations and trading volumes [29][31] Additional Insights - **Client Demographics**: A significant portion of new clients are younger investors, with nearly 60% of new to firm clients under 40 years old [14] - **AI Investments**: Schwab is investing in AI to enhance client service and operational efficiency, with 40 AI use cases in development [19] - **Tokenization and Digital Assets**: Schwab is exploring opportunities in tokenization and stablecoins, aiming to provide clients with a trusted platform for digital asset transactions [78][84] Conclusion - Schwab is positioned for continued growth through strategic investments in client services, digital assets, and operational efficiency, while maintaining a strong financial performance and capital return strategy. The company remains committed to adapting to market changes and client needs, ensuring a robust long-term trajectory.