Schwab Reports Record First Quarter Revenue

7 days ago

The Charles Schwab Corporation reported net income for the first quarter totaling $1.9 billion, or $.99 earnings per share. Excluding $130 million of pre-tax transaction-related costs, adjusted ⁽¹⁾ net income and earnings per share equaled $2.0 billion and $1.04, respectively.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250417974117/en/

Client Driven Growth	$137.7B 1Q25 Core Net New Assets	“Investors turned to Schwab to navigate an increasingly uncertain environment in 1Q25, entrusting us with $138 billion in core net new assets. This 44% year-over-year increase in asset gathering was powered by our unwavering focus on serving the needs of clients across Retail, Advisor Services, and Workplace Financial Services.” President & CEO Rick Wurster

Diversified Revenue Growth	18% 1Q25 Revenue Growth vs. 1Q24	“Schwab delivered growth on all fronts during the first quarter, converting robust organic growth, increased trading volumes, strong Managed Investing net inflows, and sustained bank lending momentum into record net revenues totaling $5.6 billion.” President & CEO Rick Wurster

Balance Sheet Management	$11.8B 1Q25 Reduction in Bank Supplemental Funding ⁽²⁾	“Client transactional sweep cash equaled $407.8 billion at the end of March – reflecting normal first quarter deployment activity partially offset by client net selling following the re-emergence of market volatility. At the same time, we further reduced Bank Supplemental Funding to $38.1 billion at quarter-end – a 46% decrease versus 1Q24.” CFO Mike Verdeschi

Opportunistic Capital Return	$1.5B Worth of Common Shares Repurchased	“While continuing to meet the evolving needs of our growing client base, we increased capital return to stockholders during the quarter – including increasing the quarterly common dividend by 8% and repurchasing $1.5 billion worth of common stock.” CFO Mike Verdeschi

1Q25 Client and Business Highlights

Net asset gathering helped total client assets increase 9% year-over-year to $9.93 trillion
Core net new assets of $137.7 billion for the quarter represents a 5.5% annualized growth rate
New brokerage account openings increased 8% year-over-year to 1.2 million for the quarter, propelling total active brokerage accounts to 37.0 million
Managed Investing Solutions net inflows grew 15% relative to 1Q24 – setting a new quarterly record
Margin balances ended the quarter essentially flat versus 4Q24 at $83.6 billion, as investors reduced leverage during the back half of the quarter amidst an increasingly uncertain environment
Driven by a sharp increase in market volatility, daily average trading volume grew 17% quarter-over-quarter
Charles Schwab named #1 Overall Broker by StockBrokers.com ⁽³⁾

	Three Months Ended March 31,						%
Financial Highlights	2025			2024			Change

Net revenues (in millions)	$	5,599		$	4,740		18	%
Net income (in millions)
GAAP	$	1,909		$	1,362		40	%
Adjusted	$	2,008		$	1,469		37	%
Diluted earnings per common share
GAAP	$	.99		$	.68		46	%
Adjusted	$	1.04		$	.74		41	%
Pre-tax profit margin
GAAP		43.8	%		37.9	%
Adjusted		46.2	%		40.9	%
Return on average common stockholders’ equity (annualized)		18	%		15	%
Return on tangible common equity (annualized)		35	%		39	%

Note:

Items labeled “adjusted” are non-GAAP financial measures; further details are included on pages 10-12 of this release. All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding.

1Q25 Financial Commentary

Quarterly net revenues grew year-over-year by 18% to a record $5.6 billion
Net interest margin expanded sequentially by 20 basis points to 2.53%
Client transactional sweep cash balances ended at $407.8 billion, a sequential decline of $10.8 billion, reflecting typical first quarter seasonality as well as client net equity selling during the back half of the quarter
Bank Supplemental Funding ⁽²⁾ declined $11.8 billion during the quarter to $38.1 billion at March month-end
Asset management and administration fees increased by 14% year-over-year to $1.5 billion as organic growth and product utilization more than offset the impact of recent equity market weakness
Trading revenue increased 11% versus 1Q24 due to higher volumes
GAAP expenses for the quarter increased 7% versus 1Q24; excluding first quarter amortization of acquired intangibles of $130 million, adjusted total expenses ⁽¹⁾ were up 8% year-over-year
Capital ratios across the firm continued to strengthen – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage ⁽¹⁾ reaching 9.9% and 7.1%, respectively
Increased the quarterly common stock dividend by 8% to $.27 per share
Repurchased 19.2 million shares of our common stock for $1.5 billion in connection with The Toronto-Dominion Bank’s secondary offer

⁽¹⁾		Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-12 of this release.
⁽²⁾		Bank Supplemental Funding includes repurchase agreements at the banks, Schwab Bank Certificates of Deposit (CDs), and Federal Home Loan Bank balances.
⁽³⁾		StockBrokers.com Annual Awards 2025 was given on January 28, 2025. The criteria, evaluation, and ranking were determined by StockBrokers.com. Companies were assessed in StockBrokers.com’s 7 Primary Categories: Range of Investments, Platforms & Tools, Research, Mobile Trading, Education, Ease of Use, and Overall. See https://www.stockbrokers.com/annual-awards-2025 for more information.

Spring Business Update

The company will host its Spring Business Update for institutional investors this morning from 7:30 a.m. - 8:30 a.m. CT, 8:30 a.m. - 9:30 a.m. ET.

Registration for this Update webcast is accessible at https://www.aboutschwab.com/schwabevents.

Forward-Looking Statements

This press release contains forward-looking statements relating to the company’s business results and capital ratios. These forward-looking statements reflect management’s expectations as of the date hereof. Achievement of these expectations and objectives is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations. Important factors that may cause such differences are described in the company’s most recent reports on Form 10-K and Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company’s website (https://www.aboutschwab.com/financial-reports) and on the Securities and Exchange Commission’s website (https://www.sec.gov). The company makes no commitment to update any forward-looking statements.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 37.0 million active brokerage accounts, 5.5 million workplace plan participant accounts, 2.1 million banking accounts, and $9.93 trillion in client assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com.


THE CHARLES SCHWAB CORPORATION
Consolidated Statements of Income
(In millions, except per share amounts)
(Unaudited)

	Three Months Ended March 31,
	2025			2024
Net Revenues
Interest revenue	$	3,757		$	3,941
Interest expense		(1,051	)		(1,708	)
Net interest revenue		2,706			2,233
Asset management and administration fees		1,530			1,348
Trading revenue		908			817
Bank deposit account fees		245			183
Other		210			159
Total net revenues		5,599			4,740
Expenses Excluding Interest
Compensation and benefits		1,672			1,538
Professional services		269			241
Occupancy and equipment		274			265
Advertising and market development		96			88
Communications		153			141
Depreciation and amortization		217			228
Amortization of acquired intangible assets		130			130
Regulatory fees and assessments		89			125
Other		244			186
Total expenses excluding interest		3,144			2,942
Income before taxes on income		2,455			1,798
Taxes on income		546			436
Net Income		1,909			1,362
Preferred stock dividends and other		113			111
Net Income Available to Common Stockholders	$	1,796		$	1,251
Weighted-Average Common Shares Outstanding:
Basic		1,817			1,825
Diluted		1,822			1,831
Earnings Per Common Shares Outstanding:
Basic	$	.99		$	.69
Diluted	$	.99		$	.68

THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)
	Q1-25 % change					2025			2024
		vs.		vs.		First			Fourth			Third			Second			First
(In millions, except per share amounts and as noted)		Q1-24		Q4-24		Quarter			Quarter			Quarter			Quarter			Quarter
Net Revenues
Net interest revenue		21	%	7	%	$	2,706		$	2,531		$	2,222		$	2,158		$	2,233
Asset management and administration fees		14	%	1	%		1,530			1,509			1,476			1,383			1,348
Trading revenue		11	%	4	%		908			873			797			777			817
Bank deposit account fees		34	%	2	%		245			241			152			153			183
Other		32	%	20	%		210			175			200			219			159
Total net revenues		18	%	5	%		5,599			5,329			4,847			4,690			4,740
Expenses Excluding Interest
Compensation and benefits		9	%	9	%		1,672			1,533			1,522			1,450			1,538
Professional services		12	%	(9	)%		269			297			256			259			241
Occupancy and equipment		3	%	(1	)%		274			276			271			248			265
Advertising and market development		9	%	(5	)%		96			101			101			107			88
Communications		9	%	17	%		153			131			147			172			141
Depreciation and amortization		(5	)%	(3	)%		217			224			231			233			228
Amortization of acquired intangible assets		—		—			130			130			130			129			130
Regulatory fees and assessments		(29	)%	—			89			89			88			96			125
Other		31	%	—			244			243			259			249			186
Total expenses excluding interest		7	%	4	%		3,144			3,024			3,005			2,943			2,942
Income before taxes on income		37	%	7	%		2,455			2,305			1,842			1,747			1,798
Taxes on income		25	%	17	%		546			465			434			415			436
Net Income		40	%	4	%		1,909			1,840			1,408			1,332			1,362
Preferred stock dividends and other		2	%	(8	)%		113			123			109			121			111
Net Income Available to Common Stockholders		44	%	5	%	$	1,796		$	1,717		$	1,299		$	1,211		$	1,251
Earnings per common share:
Basic		43	%	5	%	$	.99		$	.94		$	.71		$	.66		$	.69
Diluted		46	%	5	%	$	.99		$	.94		$	.71		$	.66		$	.68
Dividends declared per common share		8	%	8	%	$	.27		$	.25		$	.25		$	.25		$	.25
Weighted-average common shares outstanding:
Basic		—		(1	)%		1,817			1,831			1,829			1,828			1,825
Diluted		—		(1	)%		1,822			1,836			1,834			1,834			1,831
Performance Measures
Pre-tax profit margin							43.8	%		43.3	%		38.0	%		37.2	%		37.9	%
Return on average common stockholders’ equity (annualized) ⁽¹⁾							18	%		18	%		14	%		14	%		15	%
Financial Condition (at quarter end, in billions)
Cash and cash equivalents		10	%	(17	)%	$	35.0		$	42.1		$	34.9		$	25.4		$	31.8
Cash and investments segregated		48	%	1	%		38.4			38.2			33.7			21.7			25.9
Receivables from brokers, dealers, and clearing organizations		(29	)%	21	%		2.9			2.4			3.4			3.2			4.1
Receivables from brokerage clients — net		19	%	(1	)%		84.4			85.4			74.0			72.8			71.2
Available for sale securities		(26	)%	(10	)%		74.8			83.0			90.0			93.6			101.1
Held to maturity securities		(8	)%	(2	)%		143.8			146.5			149.9			153.2			156.4
Bank loans — net		15	%	4	%		47.1			45.2			43.3			42.2			40.8
Total assets		(1	)%	(4	)%		462.9			479.8			466.1			449.7			468.8
Bank deposits		(9	)%	(5	)%		246.2			259.1			246.5			252.4			269.5
Payables to brokers, dealers, and clearing organizations⁽²⁾		134	%	18	%		15.7			13.3			16.4			5.9			6.7
Payables to brokerage clients		20	%	(1	)%		100.6			101.6			89.2			80.0			84.0
Accrued expenses and other liabilities⁽²⁾		1	%	(11	)%		11.0			12.3			11.2			10.6			10.9
Other short-term borrowings		(18	)%	15	%		6.9			6.0			10.6			10.0			8.4
Federal Home Loan Bank borrowings		(52	)%	(31	)%		11.5			16.7			22.6			24.4			24.0
Long-term debt		(6	)%	(4	)%		21.5			22.4			22.4			22.4			22.9
Total liabilities		(3	)%	(4	)%		413.4			431.5			418.8			405.7			426.4
Stockholders’ equity		17	%	2	%		49.5			48.4			47.2			44.0			42.4
Total liabilities and stockholders’ equity		(1	)%	(4	)%		462.9			479.8			466.1			449.7			468.8
Other
Full-time equivalent employees (at quarter end, in thousands)		(2	)%	—			32.1			32.1			32.1			32.3			32.6
Capital expenditures — purchases of equipment, office facilities, and property, net (in millions)		28	%	(40	)%	$	156		$	258		$	135		$	92		$	122
Expenses excluding interest as a percentage of average client assets (annualized)							0.12	%		0.12	%		0.12	%		0.13	%		0.14	%
Clients’ Daily Average Trades (DATs) (in thousands)		24	%	17	%		7,391			6,312			5,697			5,486			5,958
Number of Trading Days		(2	)%	(5	)%		60.0			63.0			63.5			63.0			61.0
Revenue Per Trade ⁽³⁾		(9	)%	(7	)%	$	2.05		$	2.20		$	2.20		$	2.25		$	2.25

⁽¹⁾		Return on average common stockholders’ equity is calculated using net income available to common stockholders divided by average common stockholders’ equity.
⁽²⁾		Beginning in the fourth quarter of 2024, payables to brokers, dealers, and clearing organizations are presented separately from accrued expenses and other liabilities. Prior period amounts have been reclassified to reflect this change. Payables to brokers, dealers, and clearing organizations include securities loaned.
⁽³⁾		Revenue per trade is calculated as trading revenue divided by the product of DATs multiplied by the number of trading days.

THE CHARLES SCHWAB CORPORATION
Net Interest Revenue Information
(In millions, except ratios or as noted)
(Unaudited)
	Three Months Ended March 31,
	2025						2024
	Average Balance		Interest Revenue/ Expense		Average Yield/ Rate		Average Balance		Interest Revenue/ Expense		Average Yield/ Rate
Interest-earning assets
Cash and cash equivalents	$	30,483	$	328	4.31	%	$	33,791	$	454	5.31	%
Cash and investments segregated		38,611		412	4.27	%		29,297		388	5.24	%
Receivables from brokerage clients		83,137		1,382	6.65	%		63,804		1,260	7.81	%
Available for sale securities ⁽¹⁾		84,590		433	2.05	%		111,867		594	2.12	%
Held to maturity securities ⁽¹⁾		144,401		622	1.72	%		157,410		690	1.75	%
Bank loans		46,043		493	4.32	%		40,529		440	4.36	%
Total interest-earning assets		427,265		3,670	3.44	%		436,698		3,826	3.48	%
Securities lending revenue				60						76
Other interest revenue				27						39
Total interest-earning assets	$	427,265	$	3,757	3.52	%	$	436,698	$	3,941	3.59	%
Funding sources
Bank deposits	$	245,719	$	436	0.72	%	$	274,368	$	921	1.35	%
Payables to brokers, dealers, and clearing organizations ⁽²⁾		14,177		137	3.88	%		5,513		55	3.96	%
Payables to brokerage clients		90,173		51	0.23	%		68,343		73	0.43	%
Other short-term borrowings		6,695		82	4.96	%		7,385		103	5.61	%
Federal Home Loan Bank borrowings		10,725		133	4.94	%		24,857		330	5.27	%
Long-term debt		22,281		212	3.81	%		25,000		224	3.59	%
Total interest-bearing liabilities ⁽²⁾		389,770		1,051	1.09	%		405,466		1,706	1.69	%
Non-interest-bearing funding sources ⁽²⁾		37,495						31,232
Other interest expense				—						2
Total funding sources	$	427,265	$	1,051	0.99	%	$	436,698	$	1,708	1.57	%
Net interest revenue			$	2,706	2.53	%			$	2,233	2.02	%

⁽¹⁾		Amounts have been calculated based on amortized cost.
⁽²⁾		Beginning in the fourth quarter of 2024, payables to brokers, dealers, and clearing organizations is presented separately from non-interest-bearing funding sources and included in total interest-bearing liabilities. This line item includes securities loaned and related interest expense. Prior period amounts have been reclassified to reflect this change.

THE CHARLES SCHWAB CORPORATION
Asset Management and Administration Fees Information
(In millions, except ratios or as noted)
(Unaudited)
	Three Months Ended March 31,
	2025						2024
	Average Client Assets		Revenue		Average Fee		Average Client Assets		Revenue		Average Fee
Schwab money market funds	$	621,474	$	418	0.27	%	$	499,887	$	336	0.27	%
Schwab equity and bond funds, exchange-traded funds (ETFs), and collective trust funds (CTFs)		658,588		122	0.08	%		539,661		107	0.08	%
Mutual Fund OneSource^® and other no-transaction-fee funds		359,696		222	0.25	%		314,576		209	0.27	%
Other third-party mutual funds and ETFs		623,647		103	0.07	%		605,625		106	0.07	%
Total mutual funds, ETFs, and CTFs⁽¹⁾	$	2,263,405	$	865	0.15	%	$	1,959,749	$	758	0.16	%
Managed investing solutions ⁽¹⁾
Fee-based	$	590,483	$	569	0.39	%	$	506,133	$	503	0.40	%
Non-fee-based		120,442		—	—			106,032		—	—
Total managed investing solutions	$	710,925	$	569	0.32	%	$	612,165	$	503	0.33	%
Other balance-based fees ⁽²⁾		841,555		77	0.04	%		719,447		69	0.04	%
Other ⁽³⁾				19						18
Total asset management and administration fees			$	1,530					$	1,348

⁽¹⁾		Managed investing solutions includes managed portfolios, specialized strategies, and customized investment advice such as Schwab Wealth Advisory^TM, Schwab Managed Portfolios^TM, Managed Account Select^®, Schwab Advisor Network^®, Windhaven Strategies^®, ThomasPartners^® Strategies, Wasmer Schroeder^TM Strategies, Schwab Index Advantage advised retirement plan balances, Schwab Intelligent Portfolios^®, Institutional Intelligent Portfolios^®, Schwab Intelligent Portfolios Premium^®, AdvisorDirect^®, Essential Portfolios, Selective Portfolios, and Personalized Portfolios; as well as legacy non-fee managed investing solutions including Schwab Advisor Source and certain retirement plan balances. Average client assets for managed investing solutions may also include the asset balances contained in the mutual fund and/or ETF categories listed above. For the total end of period view, please see the Monthly Activity Report.
⁽²⁾		Includes various asset-related fees, such as trust fees, 401(k) recordkeeping fees, and mutual fund clearing fees and other service fees.
⁽³⁾		Includes miscellaneous service and transaction fees relating to mutual funds and ETFs that are not balance-based.

THE CHARLES SCHWAB CORPORATION
Growth in Client Assets and Accounts
(Unaudited)

	Q1-25 % Change					2025			2024
		vs.		vs.		First			Fourth			Third			Second			First
(In billions, at quarter end, except as noted)		Q1-24		Q4-24		Quarter			Quarter			Quarter			Quarter			Quarter
Assets in client accounts
Schwab One^®, certain cash equivalents, and bank deposits		(1	)%	(4	)%	$	345.2		$	358.8		$	334.1		$	330.7		$	348.2
Bank deposit account balances		(7	)%	(4	)%		83.7			87.5			84.0			84.5			90.2
Proprietary mutual funds (Schwab Funds^® and Laudus Funds^®) and CTFs
Money market funds ⁽¹⁾		24	%	8	%		641.5			596.5			562.1			533.6			515.7
Equity and bond funds and CTFs ⁽²⁾		10	%	(2	)%		227.0			232.2			228.9			214.4			206.0
Total proprietary mutual funds and CTFs		20	%	5	%		868.5			828.7			791.0			748.0			721.7
Mutual Fund Marketplace^{® (3)}
Mutual Fund OneSource^® and other no-transaction-fee funds		3	%	(2	)%		340.3			347.8			358.0			344.8			329.2
Mutual fund clearing services		13	%	—			280.6			280.7			280.8			264.7			248.1
Other third-party mutual funds		1	%	(1	)%		1,195.4			1,211.1			1,236.5			1,177.5			1,182.9
Total Mutual Fund Marketplace		3	%	(1	)%		1,816.3			1,839.6			1,875.3			1,787.0			1,760.2
Total mutual fund assets		8	%	1	%		2,684.8			2,668.3			2,666.3			2,535.0			2,481.9
Exchange-traded funds
Proprietary ETFs ⁽²⁾		16	%	1	%		398.2			395.0			385.9			349.6			342.9
Other third-party ETFs		17	%	1	%		1,960.1			1,940.6			1,888.2			1,738.6			1,676.6
Total ETF assets		17	%	1	%		2,358.3			2,335.6			2,274.1			2,088.2			2,019.5
Equity and other securities		9	%	(5	)%		3,765.5			3,972.6			3,839.6			3,648.8			3,467.7
Fixed income securities		—		2	%		775.8			762.3			795.4			792.0			779.0
Margin loans outstanding		23	%	—			(83.6	)		(83.8	)		(73.0	)		(71.7	)		(68.1	)
Total client assets		9	%	(2	)%	$	9,929.7		$	10,101.3		$	9,920.5		$	9,407.5		$	9,118.4
Client assets by business⁽⁴⁾
Investor Services ⁽⁵⁾		9	%	(3	)%	$	5,557.4		$	5,721.6		$	5,576.7		$	5,317.5		$	5,108.9
Advisor Services ⁽⁶⁾		9	%	—			4,372.3			4,379.7			4,343.8			4,090.0			4,009.5
Total client assets		9	%	(2	)%	$	9,929.7		$	10,101.3		$	9,920.5		$	9,407.5		$	9,118.4
Net growth in assets in client accounts (for the quarter ended)
Net new assets by business ⁽⁴⁾
Investor Services ⁽⁵⁾		85	%	50	%	$	69.5		$	46.2		$	37.2		$	40.1		$	37.6
Advisor Services ⁽⁶⁾		24	%	1	%		62.9			62.2			53.6			34.1			50.6
Total net new assets		50	%	22	%	$	132.4		$	108.4		$	90.8		$	74.2		$	88.2
Net market gains (losses)							(304.0	)		72.4			422.2			214.9			513.6
Net growth (decline)						$	(171.6	)	$	180.8		$	513.0		$	289.1		$	601.8
New brokerage accounts (in thousands, for the quarter ended)		8	%	6	%		1,183			1,119			972			985			1,094
Client accounts (in thousands)
Active brokerage accounts		5	%	2	%		37,011			36,456			35,982			35,612			35,301
Banking accounts		9	%	3	%		2,050			1,998			1,954			1,931			1,885
Workplace Plan Participant Accounts ⁽⁷⁾		4	%	2	%		5,495			5,399			5,388			5,363			5,277

⁽¹⁾		Total client assets in purchased money market funds are located at: https://www.aboutschwab.com/investor-relations.
⁽²⁾		Includes balances held on and off the Schwab platform. As of March 31, 2025, off-platform equity and bond funds, CTFs, and ETFs were $34.5 billion, $3.9 billion, and $144.8 billion, respectively.
⁽³⁾		Excludes all proprietary mutual funds and ETFs.
⁽⁴⁾		In the fourth quarter of 2024, Retirement Business Services moved from Advisor Services to Investor Services. Prior periods have been recast.
⁽⁵⁾		First quarter of 2025 includes net outflows of $5.3 billion from off-platform Schwab Bank Retail CDs. Fourth quarter of 2024 includes net outflows of $5.5 billion from off-platform Schwab Bank Retail CDs and an outflow of $0.6 billion from a large international relationship. Third quarter of 2024 includes net outflows of $4.4 billion from off-platform Schwab Bank Retail CDs and an outflow of $0.1 billion from a large international relationship. Second quarter of 2024 includes net inflows of $2.7 billion from off-platform Schwab Bank Retail CDs and an inflow of $10.3 billion from a mutual fund clearing services client. First quarter of 2024 includes net outflows of $7.4 billion from off-platform Schwab Bank Retail CDs.
⁽⁶⁾		Fourth quarter of 2024 includes an outflow of $0.3 billion from a large international relationship.
⁽⁷⁾		Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business.

The Charles Schwab Corporation Monthly Activity Report For March 2025
	2024																				2025						Change
	Mar		Apr		May		Jun		Jul		Aug		Sep		Oct		Nov		Dec		Jan		Feb		Mar		Mo.		Yr.
Market Indices (at month end)
Dow Jones Industrial Average^®	39,807		37,816		38,686		39,119		40,843		41,563		42,330		41,763		44,911		42,544		44,545		43,841		42,002		(4	)%	6	%
Nasdaq Composite^®	16,379		15,658		16,735		17,733		17,599		17,714		18,189		18,095		19,218		19,311		19,627		18,847		17,299		(8	)%	6	%
Standard & Poor’s^® 500	5,254		5,036		5,278		5,460		5,522		5,648		5,762		5,705		6,032		5,882		6,041		5,955		5,612		(6	)%	7	%
Client Assets (in billions of dollars)
Beginning Client Assets	8,879.5		9,118.4		8,847.5		9,206.3		9,407.5		9,572.1		9,737.7		9,920.5		9,852.0		10,305.4		10,101.3		10,333.1		10,280.2
Net New Assets⁽¹⁾	41.7		10.0		31.0		33.2		29.0		31.5		30.3		22.7		25.5		60.2		30.5		46.6		55.3		19	%	33	%
Net Market Gains (Losses)	197.2		(280.9	)	327.8		168.0		135.6		134.1		152.5		(91.2	)	427.9		(264.3	)	201.3		(99.5	)	(405.8	)
Total Client Assets (at month end)	9,118.4		8,847.5		9,206.3		9,407.5		9,572.1		9,737.7		9,920.5		9,852.0		10,305.4		10,101.3		10,333.1		10,280.2		9,929.7		(3	)%	9	%
Core Net New Assets^(1,2)	45.0		1.0		31.1		29.1		29.0		32.8		33.5		24.6		28.8		61.4		30.6		48.0		59.1		23	%	31	%
Receiving Ongoing Advisory Services (at month end)
Investor Services	618.5		602.2		624.0		632.9		649.1		663.7		675.1		665.6		688.9		682.0		698.7		703.5		688.8		(2	)%	11	%
Advisor Services	4,009.5		3,893.9		4,027.3		4,090.0		4,185.4		4,268.1		4,343.8		4,303.3		4,489.2		4,379.7		4,496.6		4,493.2		4,372.3		(3	)%	9	%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts	35,301		35,426		35,524		35,612		35,743		35,859		35,982		36,073		36,222		36,456		36,709		36,861		37,011		—		5	%
Banking Accounts	1,885		1,901		1,916		1,931		1,937		1,940		1,954		1,967		1,980		1,998		2,019		2,033		2,050		1	%	9	%
Workplace Plan Participant Accounts ⁽³⁾	5,277		5,282		5,345		5,363		5,382		5,373		5,388		5,407		5,393		5,399		5,450		5,464		5,495		1	%	4	%
Client Activity
New Brokerage Accounts (in thousands)	383		361		314		310		327		324		321		331		357		431		433		362		388		7	%	1	%
Client Cash as a Percentage of Client Assets⁽⁴⁾	10.0	%	10.2	%	9.9	%	9.7	%	9.6	%	9.5	%	9.5	%	9.8	%	9.5	%	10.1	%	9.8	%	10.0	%	10.6	%	60 bp		60 bp
Derivative Trades as a Percentage of Total Trades	21.9	%	22.1	%	21.9	%	21.3	%	21.2	%	20.8	%	21.5	%	21.4	%	19.7	%	18.6	%	19.3	%	19.9	%	19.5	%	(40) bp		(240) bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets ⁽⁵⁾	431,456		423,532		415,950		417,150		417,379		420,191		420,203		422,327		425,789		431,177		431,523		424,805		425,228		—		(1	)%
Average Margin Balances	66,425		68,827		67,614		69,730		73,206		73,326		72,755		74,105		76,932		81,507		82,551		84,233		82,725		(2	)%	25	%
Average Bank Deposit Account Balances ⁽⁶⁾	90,774		88,819		86,844		85,195		83,979		82,806		82,336		83,261		84,385		85,384		84,790		83,089		84,302		1	%	(7	)%
Mutual Funds and Exchange-Traded Funds
Net Buys (Sells)^(7,8) (in millions of dollars)
Equities	10,379		3,472		5,734		3,379		10,908		5,609		5,217		7,176		13,226		14,805		10,050		4,987		(1,221	)
Hybrid	(439	)	(703	)	(558	)	(843	)	(1,155	)	(1,377	)	(432	)	(1,397	)	(329	)	124		(1,324	)	(464	)	(603	)
Bonds	7,561		5,949		5,854		6,346		8,651		10,919		11,015		10,442		7,473		10,969		8,747		12,162		11,438
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds ⁽⁷⁾	(1,607	)	(4,818	)	(5,544	)	(4,254	)	(4,679	)	(4,003	)	(1,261	)	(4,905	)	(4,492	)	(4,331	)	(6,785	)	(3,971	)	(8,537	)
Exchange-Traded Funds ⁽⁸⁾	19,108		13,536		16,574		13,136		23,083		19,154		17,061		21,126		24,862		30,229		24,258		20,656		18,151
Money Market Funds	9,085		(2,357	)	9,790		3,858		9,110		8,048		9,672		11,032		9,172		8,956		11,584		12,306		14,586

Note: Certain supplemental details related to the information above can be found at: https://www.aboutschwab.com/financial-reports.
⁽¹⁾		Unless otherwise noted, differences between net new assets and core net new assets are net flows from off-platform Schwab Bank Retail CDs. Additionally, 2024 includes outflows from a large international relationship of $0.1 billion in August, $0.3 billion in October, $0.6 billion in November, and an inflow of $10.3 billion from a mutual fund clearing services client in April.
⁽²⁾		Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $25 billion beginning in 2025; $10 billion in prior periods) relating to a specific client, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods.
⁽³⁾		Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business.
⁽⁴⁾		Schwab One^®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets; client cash excludes brokered CDs issued by Charles Schwab Bank.
⁽⁵⁾		Represents average total interest-earning assets on the Company’s balance sheet.
⁽⁶⁾		Represents average clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions.
⁽⁷⁾		Represents the principal value of client mutual fund transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to Investment Managers. Excludes money market fund transactions.
⁽⁸⁾		Represents the principal value of client ETF transactions handled by Schwab, including transactions in proprietary ETFs.

THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)

In addition to disclosing financial results in accordance with generally accepted accounting principles in the U.S. (GAAP), Schwab’s first quarter earnings release contains references to the non-GAAP financial measures described below. We believe these non-GAAP financial measures provide useful supplemental information about the financial performance of the Company, and facilitate meaningful comparison of Schwab’s results in the current period to both historic and future results. These non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may not be comparable to non-GAAP financial measures presented by other companies.

Schwab’s use of non-GAAP measures is reflective of certain adjustments made to GAAP financial measures as described below.

Non-GAAP Adjustment or Measure	Definition	Usefulness to Investors and Uses by Management
Acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs	Schwab adjusts certain GAAP financial measures to exclude the impact of acquisition and integration-related costs incurred as a result of the Company’s acquisitions, amortization of acquired intangible assets, restructuring costs, and, where applicable, the income tax effect of these expenses. Adjustments made to exclude amortization of acquired intangible assets are reflective of all acquired intangible assets, which were recorded as part of purchase accounting. These acquired intangible assets contribute to the Company’s revenue generation. Amortization of acquired intangible assets will continue in future periods over their remaining useful lives.	We exclude acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs for the purpose of calculating certain non-GAAP measures because we believe doing so provides additional transparency of Schwab’s ongoing operations, and is useful in both evaluating the operating performance of the business and facilitating comparison of results with prior and future periods. Costs related to acquisition and integration or restructuring fluctuate based on the timing of acquisitions, integration and restructuring activities, thereby limiting comparability of results among periods, and are not representative of the costs of running the Company’s ongoing business. Amortization of acquired intangible assets is excluded because management does not believe it is indicative of the Company’s underlying operating performance.
Return on tangible common equity	Return on tangible common equity represents annualized adjusted net income available to common stockholders as a percentage of average tangible common equity. Tangible common equity represents common equity less goodwill, acquired intangible assets — net, and related deferred tax liabilities.	Acquisitions typically result in the recognition of significant amounts of goodwill and acquired intangible assets. We believe return on tangible common equity may be useful to investors as a supplemental measure to facilitate assessing capital efficiency and returns relative to the composition of Schwab’s balance sheet.
Adjusted Tier 1 Leverage Ratio	Adjusted Tier 1 Leverage Ratio represents the Tier 1 Leverage Ratio as prescribed by bank regulatory guidance for the consolidated company and for Charles Schwab Bank, SSB (CSB), adjusted to reflect the inclusion of accumulated other comprehensive income (AOCI) in the ratio.	Inclusion of the impacts of AOCI in the Company’s Tier 1 Leverage Ratio provides additional information regarding the Company’s current capital position. We believe Adjusted Tier 1 Leverage Ratio may be useful to investors as a supplemental measure of the Company’s capital levels.

The Company also uses adjusted diluted EPS and return on tangible common equity as components of performance criteria for employee bonus and certain executive management incentive compensation arrangements. The Compensation Committee of CSC’s Board of Directors maintains discretion in evaluating performance against these criteria. Additionally, the Company uses adjusted Tier 1 Leverage Ratio in managing capital, including its use of the measure as its long-term operating objective.

The tables below present reconciliations of GAAP measures to non-GAAP measures:
	Three Months Ended March 31,
	2025						2024
	Total Expenses Excluding Interest			Net Income			Total Expenses Excluding Interest			Net Income
Total expenses excluding interest (GAAP), Net income (GAAP)	$	3,144		$	1,909		$	2,942		$	1,362
Amortization of acquired intangible assets		(130	)		130			(130	)		130
Acquisition and integration-related costs ⁽¹⁾		—			—			(38	)		38
Restructuring costs ⁽²⁾		—			—			28			(28	)
Income tax effects ⁽³⁾		N/A			(31	)		N/A			(33	)
Adjusted total expenses (non-GAAP), Adjusted net income (non-GAAP)	$	3,014		$	2,008		$	2,802		$	1,469

⁽¹⁾		There were no acquisition and integration-related costs for the three months ended March 31, 2025. Acquisition and integration-related costs for the three months ended March 31, 2024 primarily consist of $17 million of compensation and benefits and $17 million of professional services.
⁽²⁾		There were no restructuring costs for the three months ended March 31, 2025. Restructuring costs for the three months ended March 31, 2024 reflect a change in estimate of $31 million in compensation and benefits, partially offset by $2 million of occupancy and equipment expense and $1 million of other expense.
⁽³⁾		The income tax effects of the non-GAAP adjustments are determined using an effective tax rate reflecting the exclusion of non-deductible acquisition costs and are used to present the acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs on an after-tax basis.
N/A Not applicable.

	Three Months Ended March 31,
	2025				2024
	Amount		% of Total Net Revenues		Amount			% of Total Net Revenues
Income before taxes on income (GAAP), Pre-tax profit margin (GAAP)	$	2,455	43.8	%	$	1,798		37.9	%
Amortization of acquired intangible assets		130	2.4	%		130		2.7	%
Acquisition and integration-related costs		—	—			38		0.8	%
Restructuring costs		—	—			(28	)	(0.5	)%
Adjusted income before taxes on income (non-GAAP), Adjusted pre-tax profit margin (non-GAAP)	$	2,585	46.2	%	$	1,938		40.9	%

	Three Months Ended March 31,
	2025						2024
	Amount			Diluted EPS			Amount			Diluted EPS
Net income available to common stockholders (GAAP), Earnings per common share — diluted (GAAP)	$	1,796		$	.99		$	1,251		$	.68
Amortization of acquired intangible assets		130			.07			130			.07
Acquisition and integration-related costs		—			—			38			.02
Restructuring costs		—			—			(28	)		(.01	)
Income tax effects		(31	)		(.02	)		(33	)		(.02	)
Adjusted net income available to common stockholders (non-GAAP), Adjusted diluted EPS (non-GAAP)	$	1,895		$	1.04		$	1,358		$	.74

	Three Months Ended March 31,
	2025			2024
Return on average common stockholders’ equity (GAAP)		18	%		15	%
Average common stockholders’ equity	$	39,752		$	32,493
Less: Average goodwill		(11,951	)		(11,951	)
Less: Average acquired intangible assets — net		(7,679	)		(8,196	)
Plus: Average deferred tax liabilities related to goodwill and acquired intangible assets — net		1,709			1,759
Average tangible common equity	$	21,831		$	14,105
Adjusted net income available to common stockholders ⁽¹⁾	$	1,895		$	1,358
Return on tangible common equity (non-GAAP)		35	%		39	%
⁽¹⁾ See table above for the reconciliation of net income available to common stockholders to adjusted net income available to common stockholders (non-GAAP).

	(Preliminary)
	March 31, 2025
	CSC			CSB
Tier 1 Leverage Ratio (GAAP)		9.9	%		12.1	%
Tier 1 Capital	$	45,213		$	33,078
Plus: AOCI adjustment		(13,614	)		(11,835	)
Adjusted Tier 1 Capital		31,599			21,243
Average assets with regulatory adjustments		457,495			272,273
Plus: AOCI adjustment		(14,165	)		(12,419	)
Adjusted average assets with regulatory adjustments	$	443,330		$	259,854
Adjusted Tier 1 Leverage Ratio (non-GAAP)		7.1	%		8.2	%

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