01—Abstract
Summary
Summary of the 10-Q filed August 8, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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 trillionb, 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.
02—Key points
Key Highlights
- Total net revenues increased 25% year-over-year to $5.9 billion in Q2 2025.
- Net income available to common stockholders surged 63% year-over-year to $1.98 billion in Q2 2025.
- Diluted EPS increased 64% year-over-year to $1.08 in Q2 2025.
- Core net new client assets grew 31% year-over-year to $80.3 billion in Q2 2025.
- Client assets under management reached $10.8 trillion by the end of Q2 2025, a 14% increase year-over-year.
- Net interest revenue grew 31% year-over-year to $2.8 billion in Q2 2025, benefiting from reduced funding costs and loan growth.
- The company increased its common dividend by 8% to $0.27 per share and repurchased $351 million in common stock during the quarter.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 8, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $5.85B$4.69B | +24.8% |
| Net Income | $2.13B$1.33B | +59.6% |
| EPS (Basic) | $1.09$0.66 | +65.2% |
| EPS (Diluted) | $1.08$0.66 | +63.6% |
| Shares Outstanding (Basic) | 1.82B1.83B | −0.6% |
| Shares Outstanding (Diluted) | 1.82B1.83B | −0.7% |
05—Questions
Frequently Asked Questions
What was the main driver of the significant increase in net interest revenue?
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.
How did client activity perform in the second quarter of 2025?
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.
What actions did Schwab take regarding capital management during the quarter?
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.
How did the company's asset management and administration fees perform?
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.
06—Continue