Title: schwab-first-quarter-2025-financial-report-record-revenues-asset-growth
Charles Schwab Posts Record Q1 2025 Revenue with $137.7 Billion in Net New Assets, Accelerating Client and Account Growth
Source: Charles Schwab Q1 2025 8-K Filing
Charles Schwab Corporation (NYSE: SCHW) has announced a stellar Q1 2025 performance, shattering prior records with net revenues climbing 18% year-over-year to \(5.6 billion and net income soaring 40% to \)1.9 billion. Schwab continues its trajectory as one of the leading financial services providers, driven by robust client asset inflows, active account growth, and disciplined balance sheet management.
Core Net New Assets: $137.7 billion for Q1 2025, a 44% year-over-year increase (YoY), propelling annualized asset growth to 5.5%.
Total Client Assets: Rose 9% YoY to $9.93 trillion.
Net Revenues: $5.6 billion, up 18% over Q1 2024.
GAAP Net Income: \(1.9 billion, equating to \)0.99 diluted EPS (up 46% YoY). Adjusted net income: \(2.0 billion (\)1.04 EPS).
Pre-Tax Profit Margin: Improved to 43.8% GAAP, 46.2% adjusted.
Return on Average Common Equity: 18% (versus 15% in Q1 2024).
Return on Tangible Common Equity: 35% (down from 39% in Q1 2024).
Trading Activity: Daily average trades expanded 17% sequentially, totaling over 7,391,000 trades per day.
New Accounts: 1.2 million new brokerage accounts, an 8% YoY increase, pushing total active brokerage accounts to 37 million.
Shareholder Returns: \(1.5 billion in common share repurchases and an 8% increase in the dividend to \)0.27/share.
Bank Supplemental Funding: Reduced by \(11.8B to \)38.1B, representing a 46% YoY drop.
Schwab’s record-breaking quarter is underpinned by:
Client Confidence Amidst Volatility: CEO Rick Wurster highlighted, “Investors turned to Schwab to navigate an increasingly uncertain environment… entrusting us with $138 billion in net new assets.”
Diversified Revenue Streams: All major revenue lines increased, with trading revenue up 11% and asset management and admin fees up 14% YoY.
Balance Sheet Strength: CFO Mike Verdeschi noted a significant 46% YoY decrease in Bank Supplemental Funding, indicative of robust liquidity and risk management.
Capital Returning to Shareholders: Schwab repurchased 19.2 million shares and upped its dividend. These actions reinforce Schwab’s longstanding capital discipline, a topic emphasized in earlier earnings calls.
Managed Investing Net Inflows: Achieved a record 15% YoY growth in net inflows.
Margin Balances: Flat at $83.6B, reflecting lower investor leverage due to market volatility.
Client Sweep Cash: Ended at $407.8B, reflecting typical deployment patterns and equity selling in volatile conditions.
Industry Recognition: Schwab ranked #1 Overall Broker by StockBrokers.com in 2025.
In prior quarterly calls, Schwab leadership committed to prioritizing organic asset gathering and digital platform innovation. Rick Wurster declared, “We’re strengthening our competitive edge through scalable technology and unmatched client experience,” reiterating the long-term strategy reflected in this quarter’s record account growth and asset inflows. Discussion in late 2024 earnings calls regarding heightened market volatility and client risk aversion also sets the stage for the current trend of increased sweep cash, trading activity, and margin stabilization. CFO Mike Verdeschi’s prior commentary on capital flexibility has materialized in the significant reduction of supplemental bank funding and resilient Tier 1 capital ratios (now at 9.9%).
Schwab’s first quarter of 2025 exemplifies the company’s ability to not only withstand but capitalize on market volatility through strategic asset gathering, cost controls (GAAP expenses up just 7% YoY), and product innovation. The continued strong growth in Managed Investing and ongoing investments in technology point to sustained competitive advantages. Importantly, shareholder returns remain a priority, as illustrated by increased dividends and aggressive stock buybacks.
Industry professionals and investors should monitor Schwab’s ongoing performance, especially given the evolving landscape for client preferences, digital brokerage innovation, and capital returns.
Source document: Full 8-K Filing from Schwab Q1 2025
schwab-record-revenue, client-asset-growth, financial-services-performance, share-repurchase-dividend, managed-investing-inflows