10-QPeriod: Q2 FY2025

SCHWAB CHARLES CORP Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 8, 2025For Securities:SCHWSCHW-PDSCHW-PJ

Summary

Charles Schwab Corporation (SCHW) reported a strong second quarter and first half of 2025, demonstrating robust financial performance driven by significant growth in client assets and engagement. Total net revenues increased by 25% year-over-year for the quarter and 21% year-to-date, reaching $5.9 billion and $11.5 billion, respectively. This growth was primarily fueled by a substantial increase in net interest revenue, which rose 31% and 26% year-over-year, attributed to lower funding costs and growth in bank lending, alongside a 14% increase in asset management and administration fees driven by higher client asset balances and money market fund growth. Profitability saw a significant boost, with net income available to common stockholders up 63% for the quarter and 53% year-to-date. Diluted earnings per share (EPS) also saw a substantial increase of 64% and 54%, respectively. The company continued to execute on its capital management strategy, including a 8% increase in its quarterly common dividend and significant share repurchases. Management highlighted strong client asset gathering, with client assets reaching $10.8 trillion, and a 31% year-over-year increase in core net new client assets, indicating continued client trust and growth opportunities in the expanding wealth management market.

Financial Highlights

34 data points
Beta

Revenue

$5.85B

Net Income

$2.13B

36.3% Net Margin

EPS (Diluted)

$1.08

Total Assets

$458.94B

Cash & Equivalents

$32.20B

Free Cash Flow

$3.05B

Financial Statements
Beta
Revenue$5.85B
Net Income$2.13B
EPS (Basic)$1.09
EPS (Diluted)$1.08
Shares Outstanding (Basic)1.82B
Shares Outstanding (Diluted)1.82B

Key Highlights

  • 1Total net revenues increased 25% year-over-year to $5.9 billion in Q2 2025.
  • 2Net income available to common stockholders surged 63% year-over-year to $1.98 billion in Q2 2025.
  • 3Diluted EPS increased 64% year-over-year to $1.08 in Q2 2025.
  • 4Core net new client assets grew 31% year-over-year to $80.3 billion in Q2 2025.
  • 5Client assets under management reached $10.8 trillion by the end of Q2 2025, a 14% increase year-over-year.
  • 6Net interest revenue grew 31% year-over-year to $2.8 billion in Q2 2025, benefiting from reduced funding costs and loan growth.
  • 7The company increased its common dividend by 8% to $0.27 per share and repurchased $351 million in common stock during the quarter.

Frequently Asked Questions

The substantial increase in net interest revenue was primarily driven by a reduction in bank supplemental funding costs, lower average rates paid on funding sources, and growth in bank lending. This was partially offset by lower yields on interest-earning assets due to lower market rates.

Client activity remained strong, with core net new client assets increasing by 31% year-over-year to $80.3 billion. The company also saw an 11% increase in new brokerage accounts, reaching 1.1 million, and an increase in active brokerage accounts to 37.5 million.

Schwab returned excess capital to stockholders by increasing its common dividend by 8% to $0.27 per share and repurchasing $351 million of its common stock. The company also redeemed $2.5 billion of its Series G preferred stock.

Asset management and administration fees increased by 14% year-over-year to $1.57 billion. This growth was primarily attributed to continued increases in Schwab money market funds, driven by the elevated interest rate environment, and growth in managed investing solutions and other fund categories reflecting strong asset gathering and market appreciation.