Charles Schwab Corporation (NYSE: SCHW) has set a new industry benchmark in the first quarter of 2025, reporting robust financial performance and growth across multiple core business metrics. The full 8-K filing can be reviewed here.
Record Net Revenues: Net revenues surged to $5.6 billion, an 18% increase year-over-year, establishing Schwab’s highest quarterly revenue on record.
EPS Soars: Quarterly GAAP earnings per share (EPS) climbed by 46% to \(0.99 (non-GAAP, adjusted: \)1.04, up 41%).
Net Income Growth: Net income reached \(1.9 billion (up 40% YoY), with adjusted net income at \)2.0 billion.
Asset Gathering Dominance: Schwab posted a record $137.7 billion in quarterly core net new assets—representing a 5.5% annualized growth rate and a 44% year-over-year increase.
Client Asset Base: Total client assets grew to $9.93 trillion, up 9% from a year ago.
New Accounts: 1.2 million new brokerage accounts were opened, an 8% YoY gain, pushing active brokerage accounts to 37.0 million.
Managed Investing Net Inflows: Managed Investing Solutions net inflows grew 15% YoY, marking a new quarterly record.
Rick Wurster, President & CEO, stated: “Investors turned to Schwab to navigate an increasingly uncertain environment in 1Q25, entrusting us with $138 billion in core net new assets. This 44% year-over-year increase in asset gathering was powered by our unwavering focus on serving the needs of clients across Retail, Advisor Services, and Workplace Financial Services.” (source)
Net Interest Margin Expansion: Net interest margin improved by 20 basis points sequentially to 2.53%.
Capital Management: Bank Supplemental Funding was cut by \(11.8 billion to \)38.1 billion, a significant 46% reduction YoY.
Operational Leverage: Pre-tax profit margin strengthened to 43.8% (GAAP, up from 37.9% in Q1 2024), while the adjusted pre-tax profit margin rose to 46.2%.
Return on Tangible Common Equity: Maintained a strong 35% return (non-GAAP), although slightly lower than the prior 39%.
According to CFO Mike Verdeschi: “Client transactional sweep cash equaled \(407.8 billion at the end of March – reflecting normal first quarter deployment activity partially offset by client net selling following the re-emergence of market volatility. At the same time, we further reduced Bank Supplemental Funding to \)38.1 billion at quarter-end – a 46% decrease versus 1Q24.”
Dividend Growth: Schwab increased its quarterly common stock dividend by 8% to $0.27 per share.
Share Repurchases: The firm repurchased $1.5 billion in common stock, underscoring management’s commitment to shareholder returns.
CFO Verdeschi commented: “We increased capital return to stockholders during the quarter – including increasing the quarterly common dividend by 8% and repurchasing $1.5 billion worth of common stock.”
Trading Activity: Daily average trading volume rose 17% sequentially and 24% YoY to 7,391 thousand trades, amid increased market volatility.
Margin Balances: Margin balances ended the quarter near flat sequentially at $83.6 billion, as clients reduced leverage in a volatile environment.
Product Highlights: Asset management and administration fees grew 14% YoY to \(1.5 billion, and trading revenue increased by 11% to \)908 million.
StockBrokers.com named Schwab the #1 Overall Broker in January 2025, emphasizing Schwab’s leadership in range of investments, platforms, research, and client service.
Themes of resilience, client-centric growth, strong capital position, and technology-driven engagement have been recurring points in Schwab’s prior earnings calls—management consistently highlighted disciplined expense control, robust organic asset gathering, and strength in advisory services. Notably, Schwab’s ongoing focus on balance sheet optimization and technology investments continues to translate into record financial outcomes and elevated client trust, as evidenced by this quarter’s results (see Schwab’s prior earnings call discussion on net new assets and client growth).
Client sweep cash as percentage of assets: 10.6% at March 2025 (up 60 basis points YoY).
Average margin balances: Flat QoQ, but up 25% YoY.
Average bank deposit balances: $90.8 billion in Q1 2025 (down 7% YoY).
Tier 1 Leverage Ratio (GAAP): 9.9% for the consolidated company.
In summary, Charles Schwab’s first quarter 2025 earnings affirm the company’s position as an industry leader—delivering record net new assets, top-tier financial returns, and ambitious capital return programs. The firm’s ability to generate double-digit revenue growth, expand profitability metrics, and scale client assets underscores its operational excellence and resilient, diversified business model.
For continued updates and a deep dive into Schwab’s quarterly performance, access original SEC filings and Schwab’s own financial reporting center or view the March 2025 8-K directly: Schwab Q1 2025 8-K Report.