SCHWAB CHARLES CORP Annual Report, Year Ended Dec 31, 2024

Charles Schwab Corporation (SCHW) reported a strong fiscal year 2024, characterized by significant growth in client assets and accounts, driven by positive market conditions and the successful completion of the Ameritrade integration. Total client assets reached $10.10 trillion, a 19% increase year-over-year, supported by $366.9 billion in core net new assets. The company saw a notable acceleration in client activity, particularly in the fourth quarter, with daily average trades increasing by 22% compared to the prior year. Financial performance benefited from this growth, with net income rising 17% to $5.9 billion and diluted earnings per share increasing 18% to $2.99. Net revenues grew 4% to $19.6 billion, with asset management and administration fees showing robust growth of 20% driven by higher money market fund balances and managed investing solutions. While net interest revenue saw a slight decline of 3% due to shifts in client cash allocations and funding costs, this was partially offset by growth in lending activities and a reduction in supplemental funding. The company also reported a significant decrease in total expenses excluding interest, down 4%, largely due to lower restructuring and integration costs as the Ameritrade integration concluded. Schwab's capital position remains strong, with its consolidated Tier 1 Leverage Ratio improving to 9.9% at year-end 2024. The company also announced a 2-cent increase in its quarterly cash dividend to $0.27 per common share, reflecting its commitment to returning capital to shareholders. A significant development was the complete divestiture of TD Bank's stake in Schwab, completed in February 2025 through a secondary offering and subsequent repurchase.