Record Quarterly Core Net New Assets of $190.4 Billion, Up 38% Year-Over-Year
3Q Net Revenues Reached a Record $7.2 Billion, Up 17% Year-Over-Year
Record GAAP Earnings Per Share of $1.62; $1.69 Adjusted (1) – Up 29% versus 3Q25
WESTLAKE, Texas--(BUSINESS WIRE)--The Charles Schwab Corporation reported net income for the third quarter totaling $2.9 billion, or earnings per share of $1.62. Excluding $151 million of pre-tax transaction-related costs, adjusted (1) net income and earnings per share equaled $3.0 billion and $1.69, respectively.
Client Driven Growth |
|
$190.4B
Net New Assets |
“During the third quarter, clients opened 1.2 million new brokerage accounts and entrusted Schwab with $190.4 billion in core net new assets – an annualized growth rate of 5.8%. We are delivering new capabilities and solutions, while our leading value proposition continues to resonate with investors and RIAs.”
| |
|
|
|
| |
Deepen Client Relationships |
|
55%
|
“As investing plays an increasingly central role in people’s financial lives, clients continue to turn to Schwab for our broad set of wealth, trading, and banking capabilities. During the quarter, Pledged Asset Line™ balances grew to $37.3 billion, up 59% year-over-year, while net flows into Schwab Wealth Advisory™ increased 55%.”
| |
|
|
|
| |
Diversified Revenue Growth |
|
17%
Growth vs. 3Q25 |
“Deeper client engagement across Schwab's platform continues to broaden and strengthen our revenue model, helping our third quarter revenue increase 17% year-over-year to a record $7.2 billion.”
| |
|
|
|
| |
Strong Earnings Momentum |
|
29%
Growth vs. 3Q25 |
“Our diversified business model, continued focus on meeting clients’ evolving needs, and industry leading scale combined to drive year-over-year GAAP earnings growth of 29% to a record $1.62, or $1.69 on an adjusted (1) basis.”
|
3Q26 Client and Business Highlights
- Total client assets increased 15% year-over-year to $13.33 trillion
- Core net new assets totaled $190.4 billion, up 38% versus 3Q25
- New brokerage account openings equaled 1.2 million, helping bring total client accounts to 48.6 million
- Managed Investing Solutions net flows grew 22% versus 3Q25
- Bank loan balances equaled $72.3 billion at September month-end, up 35% year-over-year
- Margin loan balances increased 14% quarter-over-quarter to $187.9 billion at quarter-end, including $60.7 billion related to long/short strategies (2)
- Daily average trading volume equaled 10.7 million – up 44% versus 3Q25
- Announced Single Stock Futures on the thinkorswim® trading platform and plans to expand digital assets available in Schwab Crypto™
- Introduced Charley, a new AI-powered assistant that provides U.S. retail clients with conversational access to Schwab’s tools and insights
- Partnered with Anthropic to bring Claude for Financial Advisors directly to the independent RIAs Schwab serves
- Schwab was recognized as one of Fortune’s 2026 Most Innovative Companies (3)
|
Three Months Ended
|
| % |
|
Nine Months Ended
|
| % | |||||||||||||
Financial Highlights | 2026 |
| 2025 |
| Change |
| 2026 |
| 2025 |
| Change | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Net revenues (in millions) | $ | 7,171 |
|
| $ | 6,135 |
|
| 17% |
| $ | 20,725 |
|
| $ | 17,585 |
|
| 18% | |
Net income (in millions) |
|
|
|
|
|
|
|
|
|
|
| |||||||||
GAAP | $ | 2,906 |
|
| $ | 2,358 |
|
| 23% |
| $ | 8,185 |
|
| $ | 6,393 |
|
| 28% | |
Adjusted | $ | 3,021 |
|
| $ | 2,456 |
|
| 23% |
| $ | 8,539 |
|
| $ | 6,686 |
|
| 28% | |
Diluted earnings per common share |
|
|
|
|
|
|
|
|
|
|
| |||||||||
GAAP | $ | 1.62 |
|
| $ | 1.26 |
|
| 29% |
| $ | 4.53 |
|
| $ | 3.33 |
|
| 36% | |
Adjusted | $ | 1.69 |
|
| $ | 1.31 |
|
| 29% |
| $ | 4.73 |
|
| $ | 3.49 |
|
| 36% | |
Pre-tax profit margin |
|
|
|
|
|
|
|
|
|
|
| |||||||||
GAAP |
| 52.7 | % |
|
| 49.2 | % |
|
|
|
| 51.3 | % |
|
| 47.1 | % |
|
| |
Adjusted |
| 54.8 | % |
|
| 51.3 | % |
|
|
|
| 53.5 | % |
|
| 49.3 | % |
|
| |
Return on average common stockholders’ equity (annualized) |
| 25 | % |
|
| 21 | % |
|
|
|
| 24 | % |
|
| 20 | % |
|
| |
Return on tangible common equity (annualized) |
| 44 | % |
|
| 38 | % |
|
|
|
| 42 | % |
|
| 37 | % |
|
| |
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. |
3Q26 Financial Commentary
- Quarterly net revenues grew year-over-year by 17% to a record $7.2 billion
- Net interest margin expanded quarter-over-quarter to 3.04%
- Client transactional sweep cash balances ended September at $492.8 billion, an increase of $7.1 billion versus the prior quarter-end, reflecting continued demand for long/short strategies and organic growth, partially offset by client asset allocation decisions
- Average interest-earning assets for the quarter equaled $451.5 billion, up 8% versus 3Q25
- Asset management and administration fees grew by 14% year-over-year to $1.9 billion, powered by the firm’s organic growth and investors’ increased utilization of our wealth and asset management solutions
- Clients remained engaged with the market, driving trading revenue of $1.2 billion, up 16% year-over-year
- GAAP expenses for the quarter increased 9% year-over-year; excluding acquisition and integration-related costs and the amortization of acquired intangibles of $151 million, adjusted total expenses (1) were also up 9% relative to 3Q25
- Capital ratios across the firm remained strong – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) of 8.9% and 7.0%, respectively
- Repurchased 4.7 million shares of our common stock for $0.5 billion during the quarter
(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) | Client margin loans and short credits related to certain long/short strategies utilized by RIAs are excluded from interest-earning assets and company funding sources. | |
(3) | Fortune America’s Most Innovative Companies 2026 was given on March 25, 2026, and expires on March 24, 2027. The criteria, evaluation, and ranking were determined by Fortune, partnered with Statista. Visit https://www.fortune.com/ranking/americas-most-innovative-companies/ for more information. Schwab paid a licensing fee to Fortune for use of the award and logos. |
Fall Business Update
The company will host its Fall 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 diversified business model, scale, capabilities, solutions, value proposition, and client engagement. 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 40.3 million active brokerage accounts, 5.9 million workplace plan participant accounts, 2.4 million banking accounts, and $13.33 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
|
|
Nine Months Ended
| |||||||||||||
| 2026 |
| 2025 |
| 2026 |
| 2025 | |||||||||
Net Revenues |
|
|
|
|
|
|
| |||||||||
Interest revenue | $ | 4,473 |
|
| $ | 3,956 |
|
| $ | 12,581 |
|
| $ | 11,500 |
| |
Interest expense |
| (997 | ) |
|
| (906 | ) |
|
| (2,604 | ) |
|
| (2,922 | ) | |
Net interest revenue |
| 3,476 |
|
|
| 3,050 |
|
|
| 9,977 |
|
|
| 8,578 |
| |
Asset management and administration fees |
| 1,913 |
|
|
| 1,673 |
|
|
| 5,497 |
|
|
| 4,773 |
| |
Trading revenue |
| 1,158 |
|
|
| 995 |
|
|
| 3,462 |
|
|
| 2,855 |
| |
Bank deposit account fees |
| 345 |
|
|
| 247 |
|
|
| 973 |
|
|
| 739 |
| |
Other |
| 279 |
|
|
| 170 |
|
|
| 816 |
|
|
| 640 |
| |
Total net revenues |
| 7,171 |
|
|
| 6,135 |
|
|
| 20,725 |
|
|
| 17,585 |
| |
Expenses Excluding Interest |
|
|
|
|
|
|
| |||||||||
Compensation and benefits |
| 1,756 |
|
|
| 1,653 |
|
|
| 5,358 |
|
|
| 4,861 |
| |
Professional services |
| 325 |
|
|
| 293 |
|
|
| 935 |
|
|
| 853 |
| |
Occupancy and equipment |
| 316 |
|
|
| 280 |
|
|
| 902 |
|
|
| 824 |
| |
Advertising and market development |
| 114 |
|
|
| 101 |
|
|
| 326 |
|
|
| 305 |
| |
Communications |
| 172 |
|
|
| 149 |
|
|
| 533 |
|
|
| 478 |
| |
Depreciation and amortization |
| 196 |
|
|
| 212 |
|
|
| 595 |
|
|
| 644 |
| |
Amortization of acquired intangible assets |
| 141 |
|
|
| 127 |
|
|
| 415 |
|
|
| 385 |
| |
Regulatory fees and assessments |
| 73 |
|
|
| 59 |
|
|
| 211 |
|
|
| 225 |
| |
Other |
| 301 |
|
|
| 240 |
|
|
| 816 |
|
|
| 731 |
| |
Total expenses excluding interest |
| 3,394 |
|
|
| 3,114 |
|
|
| 10,091 |
|
|
| 9,306 |
| |
Income before taxes on income |
| 3,777 |
|
|
| 3,021 |
|
|
| 10,634 |
|
|
| 8,279 |
| |
Taxes on income |
| 871 |
|
|
| 663 |
|
|
| 2,449 |
|
|
| 1,886 |
| |
Net Income |
| 2,906 |
|
|
| 2,358 |
|
|
| 8,185 |
|
|
| 6,393 |
| |
Preferred stock dividends and other |
| 95 |
|
|
| 81 |
|
|
| 296 |
|
|
| 343 |
| |
Net Income Available to Common Stockholders | $ | 2,811 |
|
| $ | 2,277 |
|
| $ | 7,889 |
|
| $ | 6,050 |
| |
Weighted-Average Common Shares Outstanding: |
|
|
|
|
|
|
| |||||||||
Basic |
| 1,728 |
|
|
| 1,806 |
|
|
| 1,736 |
|
|
| 1,815 |
| |
Diluted |
| 1,733 |
|
|
| 1,811 |
|
|
| 1,741 |
|
|
| 1,820 |
| |
Earnings Per Common Shares Outstanding: |
|
|
|
|
|
|
| |||||||||
Basic | $ | 1.63 |
|
| $ | 1.26 |
|
| $ | 4.54 |
|
| $ | 3.33 |
| |
Diluted | $ | 1.62 |
|
| $ | 1.26 |
|
| $ | 4.53 |
|
| $ | 3.33 |
| |
THE CHARLES SCHWAB CORPORATION | |||||||||||||||||||||||||
Financial and Operating Highlights | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
| Q3-26 % change |
| 2026 |
| 2025 | ||||||||||||||||||||
(In millions, except per share amounts and as noted) | vs. |
| vs. |
|
| Third |
| Second |
| First |
| Fourth |
| Third | |||||||||||
Q3-25 |
| Q2-26 |
|
| Quarter |
| Quarter |
| Quarter |
| Quarter |
| Quarter | ||||||||||||
Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Net interest revenue | 14% |
| 4% |
|
| $ | 3,476 |
|
| $ | 3,357 |
|
| $ | 3,144 |
|
| $ | 3,172 |
|
| $ | 3,050 |
| |
Asset management and administration fees | 14% |
| 5% |
|
|
| 1,913 |
|
|
| 1,825 |
|
|
| 1,759 |
|
|
| 1,733 |
|
|
| 1,673 |
| |
Trading revenue | 16% |
| (5)% |
|
|
| 1,158 |
|
|
| 1,215 |
|
|
| 1,089 |
|
|
| 1,066 |
|
|
| 995 |
| |
Bank deposit account fees | 40% |
| 4% |
|
|
| 345 |
|
|
| 333 |
|
|
| 295 |
|
|
| 238 |
|
|
| 247 |
| |
Other | 64% |
| (18)% |
|
|
| 279 |
|
|
| 342 |
|
|
| 195 |
|
|
| 127 |
|
|
| 170 |
| |
Total net revenues | 17% |
| 1% |
|
|
| 7,171 |
|
|
| 7,072 |
|
|
| 6,482 |
|
|
| 6,336 |
|
|
| 6,135 |
| |
Expenses Excluding Interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Compensation and benefits | 6% |
| (2)% |
|
|
| 1,756 |
|
|
| 1,790 |
|
|
| 1,812 |
|
|
| 1,630 |
|
|
| 1,653 |
| |
Professional services | 11% |
| 6% |
|
|
| 325 |
|
|
| 307 |
|
|
| 303 |
|
|
| 344 |
|
|
| 293 |
| |
Occupancy and equipment | 13% |
| 5% |
|
|
| 316 |
|
|
| 301 |
|
|
| 285 |
|
|
| 293 |
|
|
| 280 |
| |
Advertising and market development | 13% |
| 3% |
|
|
| 114 |
|
|
| 111 |
|
|
| 101 |
|
|
| 115 |
|
|
| 101 |
| |
Communications | 15% |
| (13)% |
|
|
| 172 |
|
|
| 198 |
|
|
| 163 |
|
|
| 142 |
|
|
| 149 |
| |
Depreciation and amortization | (8)% |
| (1)% |
|
|
| 196 |
|
|
| 198 |
|
|
| 201 |
|
|
| 206 |
|
|
| 212 |
| |
Amortization of acquired intangible assets | 11% |
| (1)% |
|
|
| 141 |
|
|
| 142 |
|
|
| 132 |
|
|
| 127 |
|
|
| 127 |
| |
Regulatory fees and assessments | 24% |
| 16% |
|
|
| 73 |
|
|
| 63 |
|
|
| 75 |
|
|
| 62 |
|
|
| 59 |
| |
Other | 25% |
| 3% |
|
|
| 301 |
|
|
| 293 |
|
|
| 222 |
|
|
| 237 |
|
|
| 240 |
| |
Total expenses excluding interest | 9% |
| — |
|
|
| 3,394 |
|
|
| 3,403 |
|
|
| 3,294 |
|
|
| 3,156 |
|
|
| 3,114 |
| |
Income before taxes on income | 25% |
| 3% |
|
|
| 3,777 |
|
|
| 3,669 |
|
|
| 3,188 |
|
|
| 3,180 |
|
|
| 3,021 |
| |
Taxes on income | 31% |
| — |
|
|
| 871 |
|
|
| 869 |
|
|
| 709 |
|
|
| 721 |
|
|
| 663 |
| |
Net Income | 23% |
| 4% |
|
|
| 2,906 |
|
|
| 2,800 |
|
|
| 2,479 |
|
|
| 2,459 |
|
|
| 2,358 |
| |
Preferred stock dividends and other | 17% |
| (20)% |
|
|
| 95 |
|
|
| 119 |
|
|
| 82 |
|
|
| 92 |
|
|
| 81 |
| |
Net Income Available to Common Stockholders | 23% |
| 5% |
|
| $ | 2,811 |
|
| $ | 2,681 |
|
| $ | 2,397 |
|
| $ | 2,367 |
|
| $ | 2,277 |
| |
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Basic | 29% |
| 5% |
|
| $ | 1.63 |
|
| $ | 1.55 |
|
| $ | 1.37 |
|
| $ | 1.34 |
|
| $ | 1.26 |
| |
Diluted | 29% |
| 5% |
|
| $ | 1.62 |
|
| $ | 1.54 |
|
| $ | 1.37 |
|
| $ | 1.33 |
|
| $ | 1.26 |
| |
Dividends declared per common share | 19% |
| — |
|
| $ | .32 |
|
| $ | .32 |
|
| $ | .32 |
|
| $ | .27 |
|
| $ | .27 |
| |
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Basic | (4)% |
| — |
|
|
| 1,728 |
|
|
| 1,735 |
|
|
| 1,746 |
|
|
| 1,772 |
|
|
| 1,806 |
| |
Diluted | (4)% |
| — |
|
|
| 1,733 |
|
|
| 1,739 |
|
|
| 1,752 |
|
|
| 1,777 |
|
|
| 1,811 |
| |
Performance Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Pre-tax profit margin |
|
|
|
|
|
| 52.7 | % |
|
| 51.9 | % |
|
| 49.2 | % |
|
| 50.2 | % |
|
| 49.2 | % | |
Return on average common stockholders’ equity (annualized) (1) |
|
|
|
|
|
| 25 | % |
|
| 25 | % |
|
| 23 | % |
|
| 22 | % |
|
| 21 | % | |
Financial Condition (at quarter end, in billions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Cash and cash equivalents | 20% |
| (10)% |
|
| $ | 36.7 |
|
| $ | 40.6 |
|
| $ | 45.0 |
|
| $ | 46.0 |
|
| $ | 30.6 |
| |
Cash and investments segregated | (33)% |
| (4)% |
|
|
| 31.8 |
|
|
| 33.0 |
|
|
| 39.8 |
|
|
| 42.9 |
|
|
| 47.8 |
| |
Receivables from brokers, dealers, and clearing organizations | N/M |
| 24% |
|
|
| 27.2 |
|
|
| 22.0 |
|
|
| 11.8 |
|
|
| 7.2 |
|
|
| 4.7 |
| |
Receivables from brokerage clients — net | 37% |
| 4% |
|
|
| 128.1 |
|
|
| 122.8 |
|
|
| 106.2 |
|
|
| 104.7 |
|
|
| 93.8 |
| |
Available for sale securities | (5)% |
| (6)% |
|
|
| 59.0 |
|
|
| 62.5 |
|
|
| 61.1 |
|
|
| 62.4 |
|
|
| 62.3 |
| |
Held to maturity securities | (7)% |
| (3)% |
|
|
| 126.6 |
|
|
| 130.6 |
|
|
| 131.7 |
|
|
| 134.0 |
|
|
| 136.7 |
| |
Bank loans — net | 35% |
| 8% |
|
|
| 72.3 |
|
|
| 67.0 |
|
|
| 60.9 |
|
|
| 58.0 |
|
|
| 53.6 |
| |
Total assets | 12% |
| 1% |
|
|
| 520.7 |
|
|
| 517.3 |
|
|
| 493.3 |
|
|
| 491.0 |
|
|
| 465.3 |
| |
Bank deposits | 2% |
| (2)% |
|
|
| 244.1 |
|
|
| 249.7 |
|
|
| 253.0 |
|
|
| 255.7 |
|
|
| 239.1 |
| |
Payables to brokers, dealers, and clearing organizations | 108% |
| 6% |
|
|
| 46.5 |
|
|
| 43.8 |
|
|
| 28.1 |
|
|
| 25.7 |
|
|
| 22.4 |
| |
Payables to brokerage clients | 8% |
| 1% |
|
|
| 125.2 |
|
|
| 124.0 |
|
|
| 118.0 |
|
|
| 116.3 |
|
|
| 115.4 |
| |
Accrued expenses and other liabilities | 18% |
| 7% |
|
|
| 13.4 |
|
|
| 12.5 |
|
|
| 12.0 |
|
|
| 12.8 |
|
|
| 11.4 |
| |
Other short-term borrowings | 118% |
| 2% |
|
|
| 14.2 |
|
|
| 13.9 |
|
|
| 12.5 |
|
|
| 6.9 |
|
|
| 6.5 |
| |
Federal Home Loan Bank borrowings | 122% |
| N/M |
|
|
| 2.0 |
|
|
| 0.5 |
|
|
| — |
|
|
| 1.9 |
|
|
| 0.9 |
| |
Long-term debt | 18% |
| 5% |
|
|
| 23.8 |
|
|
| 22.7 |
|
|
| 20.5 |
|
|
| 22.2 |
|
|
| 20.2 |
| |
Total liabilities | 13% |
| — |
|
|
| 469.2 |
|
|
| 467.1 |
|
|
| 444.1 |
|
|
| 441.6 |
|
|
| 415.9 |
| |
Stockholders’ equity | 4% |
| 3% |
|
|
| 51.4 |
|
|
| 50.1 |
|
|
| 49.2 |
|
|
| 49.4 |
|
|
| 49.4 |
| |
Total liabilities and stockholders’ equity | 12% |
| 1% |
|
|
| 520.7 |
|
|
| 517.3 |
|
|
| 493.3 |
|
|
| 491.0 |
|
|
| 465.3 |
| |
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Full-time equivalent employees (at quarter end, in thousands) | 4% |
| 1% |
|
|
| 33.9 |
|
|
| 33.7 |
|
|
| 33.5 |
|
|
| 33.0 |
|
|
| 32.7 |
| |
Capital expenditures — purchases of equipment, office facilities, and property, net (in millions) (2) | 110% |
| (60)% |
|
| $ | 319 |
|
| $ | 792 |
|
| $ | 173 |
|
| $ | 158 |
|
| $ | 152 |
| |
Expenses excluding interest as a percentage of average client assets (annualized) |
|
|
|
|
|
| 0.10 | % |
|
| 0.11 | % |
|
| 0.11 | % |
|
| 0.11 | % |
|
| 0.11 | % | |
Clients’ Daily Average Trades (DATs) (in thousands) | 44% |
| (10)% |
|
|
| 10,687 |
|
|
| 11,920 |
|
|
| 9,899 |
|
|
| 8,274 |
|
|
| 7,421 |
| |
Number of Trading Days | 1% |
| 3% |
|
|
| 64.0 |
|
|
| 62.0 |
|
|
| 61.0 |
|
|
| 63.0 |
|
|
| 63.5 |
| |
Revenue Per Trade (3) | (20)% |
| 3% |
|
| $ | 1.69 |
|
| $ | 1.64 |
|
| $ | 1.80 |
|
| $ | 2.05 |
|
| $ | 2.11 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(1) | Return on average common stockholders’ equity is calculated using net income available to common stockholders divided by average common stockholders’ equity. | |
(2) | Second quarter of 2026 includes incremental capital expenditures of $633 million related to a multi-year software license agreement with a corresponding liability recognized in long-term debt. | |
(3) | Revenue per trade is calculated as trading revenue divided by the product of DATs and the number of trading days. | |
N/M Not meaningful. Percentage changes greater than 200% are presented as not meaningful. | ||
THE CHARLES SCHWAB CORPORATION | ||||||||||||||||||||||||||||||||||||||||
Net Interest Revenue Information | ||||||||||||||||||||||||||||||||||||||||
(In millions, except ratios or as noted) | ||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
|
|
Three Months Ended
|
|
|
Nine Months Ended
| |||||||||||||||||||||||||||||||||||
|
| 2026 |
|
| 2025 |
|
| 2026 |
|
| 2025 | |||||||||||||||||||||||||||||
|
| Average Balance |
| Interest Revenue/ Expense |
| Average Yield/ Rate |
|
| Average Balance |
| Interest Revenue/ Expense |
| Average Yield/ Rate |
|
| Average Balance |
| Interest Revenue/ Expense |
| Average Yield/ Rate |
|
| Average Balance |
| Interest Revenue/ Expense |
| Average Yield/ Rate | |||||||||||||
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Cash and cash equivalents | $ | 34,525 |
| $ | 317 |
|
| 3.59 | % |
|
| $ | 24,298 |
| $ | 264 |
| 4.26 | % |
|
| $ | 32,577 |
| $ | 883 |
| 3.58 | % |
|
| $ | 27,571 |
| $ | 897 |
| 4.29 | % | |
Cash and investments segregated |
| 31,251 |
|
| 289 |
|
| 3.62 | % |
|
|
| 46,046 |
|
| 494 |
| 4.20 | % |
|
|
| 38,795 |
|
| 1,060 |
| 3.60 | % |
|
|
| 44,104 |
|
| 1,412 |
| 4.22 | % | |
Receivables from brokerage clients (1) |
| 123,061 |
|
| 1,792 |
|
| 5.70 | % |
|
|
| 87,292 |
|
| 1,454 |
| 6.52 | % |
|
|
| 113,307 |
|
| 4,900 |
| 5.70 | % |
|
|
| 82,992 |
|
| 4,154 |
| 6.60 | % | |
Available for sale securities (2) |
| 65,149 |
|
| 379 |
|
| 2.31 | % |
|
|
| 69,794 |
|
| 360 |
| 2.05 | % |
|
|
| 65,422 |
|
| 1,063 |
| 2.16 | % |
|
|
| 77,324 |
|
| 1,198 |
| 2.06 | % | |
Held to maturity securities (2) |
| 128,026 |
|
| 553 |
|
| 1.72 | % |
|
|
| 137,672 |
|
| 587 |
| 1.70 | % |
|
|
| 130,433 |
|
| 1,690 |
| 1.72 | % |
|
|
| 141,032 |
|
| 1,811 |
| 1.71 | % | |
Bank loans |
| 69,526 |
|
| 775 |
|
| 4.43 | % |
|
|
| 51,849 |
|
| 557 |
| 4.27 | % |
|
|
| 64,249 |
|
| 2,095 |
| 4.35 | % |
|
|
| 48,882 |
|
| 1,568 |
| 4.28 | % | |
Total interest-earning assets |
| 451,538 |
|
| 4,105 |
|
| 3.58 | % |
|
|
| 416,951 |
|
| 3,716 |
| 3.51 | % |
|
|
| 444,783 |
|
| 11,691 |
| 3.48 | % |
|
|
| 421,905 |
|
| 11,040 |
| 3.46 | % | |
Securities lending revenue |
|
|
| 238 |
|
|
|
|
|
|
|
| 183 |
|
|
|
|
|
|
| 507 |
|
|
|
|
|
|
| 339 |
|
| |||||||||
Other interest revenue (1,3) |
|
|
| 130 |
|
|
|
|
|
|
|
| 57 |
|
|
|
|
|
|
| 383 |
|
|
|
|
|
|
| 121 |
|
| |||||||||
Total interest-earning assets | $ | 451,538 |
| $ | 4,473 |
|
| 3.90 | % |
|
| $ | 416,951 |
| $ | 3,956 |
| 3.74 | % |
|
| $ | 444,783 |
| $ | 12,581 |
| 3.75 | % |
|
| $ | 421,905 |
| $ | 11,500 |
| 3.61 | % | |
Funding sources |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Bank deposits | $ | 244,309 |
| $ | 139 |
|
| 0.23 | % |
|
| $ | 229,281 |
| $ | 248 |
| 0.43 | % |
|
| $ | 244,451 |
| $ | 371 |
| 0.20 | % |
|
| $ | 237,488 |
| $ | 1,010 |
| 0.57 | % | |
Payables to brokers, dealers, and clearing organizations |
| 42,113 |
|
| 376 |
|
| 3.50 | % |
|
|
| 19,131 |
|
| 188 |
| 3.84 | % |
|
|
| 33,165 |
|
| 869 |
| 3.46 | % |
|
|
| 16,673 |
|
| 492 |
| 3.89 | % | |
Payables to brokerage clients (1) |
| 106,900 |
|
| 59 |
|
| 0.22 | % |
|
|
| 96,064 |
|
| 67 |
| 0.28 | % |
|
|
| 106,952 |
|
| 174 |
| 0.22 | % |
|
|
| 92,909 |
|
| 176 |
| 0.25 | % | |
Other short-term borrowings |
| 14,349 |
|
| 148 |
|
| 4.06 | % |
|
|
| 7,593 |
|
| 87 |
| 4.56 | % |
|
|
| 11,531 |
|
| 351 |
| 4.04 | % |
|
|
| 7,314 |
|
| 256 |
| 4.68 | % | |
Federal Home Loan Bank borrowings |
| 929 |
|
| 10 |
|
| 3.97 | % |
|
|
| 7,103 |
|
| 79 |
| 4.35 | % |
|
|
| 776 |
|
| 23 |
| 3.90 | % |
|
|
| 9,180 |
|
| 322 |
| 4.62 | % | |
Long-term debt |
| 23,572 |
|
| 272 |
|
| 4.52 | % |
|
|
| 20,204 |
|
| 207 |
| 4.01 | % |
|
|
| 22,206 |
|
| 701 |
| 4.16 | % |
|
|
| 21,029 |
|
| 625 |
| 3.92 | % | |
Total interest-bearing liabilities |
| 432,172 |
|
| 1,004 |
|
| 0.91 | % |
|
|
| 379,376 |
|
| 876 |
| 0.91 | % |
|
|
| 419,081 |
|
| 2,489 |
| 0.79 | % |
|
|
| 384,593 |
|
| 2,881 |
| 0.99 | % | |
Non-interest-bearing funding sources |
| 19,366 |
|
|
|
|
|
|
| 37,575 |
|
|
|
|
|
|
| 25,702 |
|
|
|
|
|
|
| 37,312 |
|
|
|
| ||||||||||
Other interest expense (1,3) |
|
|
| (7 | ) |
|
|
|
|
|
|
| 30 |
|
|
|
|
|
|
| 115 |
|
|
|
|
|
|
| 41 |
|
| |||||||||
Total funding sources | $ | 451,538 |
| $ | 997 |
|
| 0.86 | % |
|
| $ | 416,951 |
| $ | 906 |
| 0.86 | % |
|
| $ | 444,783 |
| $ | 2,604 |
| 0.78 | % |
|
| $ | 421,905 |
| $ | 2,922 |
| 0.92 | % | |
Net interest revenue |
|
| $ | 3,476 |
|
| 3.04 | % |
|
|
|
| $ | 3,050 |
| 2.88 | % |
|
|
|
| $ | 9,977 |
| 2.97 | % |
|
|
|
| $ | 8,578 |
| 2.69 | % | |||||
(1) | Beginning in the fourth quarter of 2025, average balances of margin loans and short credits related to client long/short strategies from which the Company earns a fixed net yield are excluded from interest-earning assets and funding sources. Also beginning in the fourth quarter of 2025, related interest revenue and expense were moved from receivables from brokerage clients and payables to brokerage clients, respectively, to other interest revenue and other interest expense, respectively. Amounts and average yields have been reclassified and recalculated for 2025 periods to reflect these changes. Average margin loans related to these client strategies totaled $51.4 billion and $33.0 billion for the three and nine months ended September 30, 2026, respectively, compared to $2.8 billion and $1.3 billion for the same periods in 2025. Average short credits related to these client strategies totaled $53.3 billion and $34.2 billion for the three and nine months ended September 30, 2026, respectively, compared to $2.8 billion and $1.3 billion for the same periods in 2025. | |
(2) | Amounts have been calculated based on amortized cost. | |
(3) | Beginning in the second quarter of 2026, the net fixed yield earned on client long/short strategies is presented in other interest revenue; amounts for periods prior to the three months ended June 30, 2026 have not been recast as the impact of this change was not material. | |
THE CHARLES SCHWAB CORPORATION | |||||||||||||||||||||||||||||||||||||||
Asset Management and Administration Fees Information | |||||||||||||||||||||||||||||||||||||||
(In millions, except ratios or as noted) | |||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||
|
|
Three Months Ended
|
|
|
Nine Months Ended
| ||||||||||||||||||||||||||||||||||
|
| 2026 |
|
| 2025 |
|
| 2026 |
|
| 2025 | ||||||||||||||||||||||||||||
|
| Average Client Assets |
| Revenue |
| Average Fee |
|
| Average Client Assets |
| Revenue |
| Average Fee |
|
| Average Client Assets |
| Revenue |
| Average Fee |
|
| Average Client Assets |
| Revenue |
| Average Fee | ||||||||||||
Schwab money market funds | $ | 699,067 |
| $ | 481 |
| 0.27 | % |
|
| $ | 663,218 |
| $ | 458 |
| 0.27 | % |
|
| $ | 696,173 |
| $ | 1,422 |
| 0.27 | % |
|
| $ | 643,168 |
| $ | 1,318 |
| 0.27 | % | |
Schwab equity and bond funds, exchange-traded funds (ETFs), and collective trust funds (CTFs) |
| 943,891 |
|
| 167 |
| 0.07 | % |
|
|
| 735,519 |
|
| 132 |
| 0.07 | % |
|
|
| 881,581 |
|
| 470 |
| 0.07 | % |
|
|
| 685,300 |
|
| 376 |
| 0.07 | % | |
Mutual Fund OneSource ® and other no-transaction-fee funds (NTFs) |
| 486,893 |
|
| 277 |
| 0.23 | % |
|
|
| 443,660 |
|
| 259 |
| 0.23 | % |
|
|
| 479,690 |
|
| 812 |
| 0.23 | % |
|
|
| 384,614 |
|
| 699 |
| 0.24 | % | |
Other third-party mutual funds, ETFs, and alternatives (1) |
| 696,598 |
|
| 126 |
| 0.07 | % |
|
|
| 639,677 |
|
| 112 |
| 0.07 | % |
|
|
| 680,066 |
|
| 358 |
| 0.07 | % |
|
|
| 637,610 |
|
| 344 |
| 0.07 | % | |
Total mutual funds, ETFs, CTFs, and alternatives (1,2) | $ | 2,826,449 |
| $ | 1,051 |
| 0.15 | % |
|
| $ | 2,482,074 |
| $ | 961 |
| 0.15 | % |
|
| $ | 2,737,510 |
| $ | 3,062 |
| 0.15 | % |
|
| $ | 2,350,692 |
| $ | 2,737 |
| 0.16 | % | |
Managed investing solutions (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Fee-based | $ | 801,949 |
| $ | 761 |
| 0.38 | % |
|
| $ | 654,220 |
| $ | 619 |
| 0.38 | % |
|
| $ | 764,516 |
| $ | 2,142 |
| 0.37 | % |
|
| $ | 613,302 |
| $ | 1,777 |
| 0.39 | % | |
Non-fee-based |
| 165,151 |
|
| — |
| — |
|
|
|
| 127,592 |
|
| — |
| — |
|
|
|
| 156,678 |
|
| — |
| — |
|
|
|
| 122,920 |
|
| — |
| — |
| |
Total managed investing solutions | $ | 967,100 |
| $ | 761 |
| 0.31 | % |
|
| $ | 781,812 |
| $ | 619 |
| 0.31 | % |
|
| $ | 921,194 |
| $ | 2,142 |
| 0.31 | % |
|
| $ | 736,222 |
| $ | 1,777 |
| 0.32 | % | |
Other balance-based fees (1,3) |
| 1,020,380 |
|
| 70 |
| 0.03 | % |
|
|
| 900,385 |
|
| 66 |
| 0.03 | % |
|
|
| 991,943 |
|
| 209 |
| 0.03 | % |
|
|
| 849,876 |
|
| 191 |
| 0.03 | % | |
Other (4) |
|
|
| 31 |
|
|
|
|
|
|
| 27 |
|
|
|
|
|
|
| 84 |
|
|
|
|
|
|
| 68 |
|
| |||||||||
Total asset management and administration fees |
| $ | 1,913 |
|
|
|
|
|
| $ | 1,673 |
|
|
|
|
|
| $ | 5,497 |
|
|
|
|
|
| $ | 4,773 |
|
| ||||||||||
(1) | Beginning in the first quarter of 2026, alternative investments and related revenue were moved from other balance-based fees to other third-party mutual funds, ETFs, and alternatives. Prior period amounts and average fees have been reclassified and recalculated to reflect this change. | |
(2) | Managed investing solutions includes managed portfolios, specialized strategies, and customized investment advice such as Schwab Wealth Advisory™, Schwab Managed Portfolios™, Managed Account Select®, Schwab Advisor Network®, Windhaven Strategies®, ThomasPartners® Strategies, Wasmer Schroeder Strategies®, Schwab Index Advantage advised retirement plan balances, Schwab Intelligent Portfolios®, Institutional Intelligent Portfolios, Schwab Intelligent Portfolios Premium, Schwab Wealth Portfolios™, 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. | |
(3) | Includes various asset-related fees, such as trust fees, 401(k) recordkeeping fees, and mutual fund clearing fees and other service fees. | |
(4) | Includes miscellaneous service and transaction fees, including fees relating to mutual funds and ETFs that are not balance-based. | |
Contacts
MEDIA
Mayura Hooper, 415-667-1525
public.relations@schwab.com
INVESTORS/ANALYSTS
Kartik Sharma, 817-662-7648
investor.relations@schwab.com
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