Source: SEC 8-K Filing for Charles Schwab Q1 2025
Record Net Revenues: Charles Schwab (NYSE: SCHW) delivered net revenues of $5.6 billion in Q1 2025, up 18% year-over-year (8-K Source).
Strong Profitability: Net income reached \(1.9 billion (GAAP), translating to \)0.99 earnings per share, a 41% increase from Q1 2024. Adjusted net income and EPS were \(2.0 billion and \)1.04, respectively.
Client Asset Growth: Core net new assets for the quarter totaled \(137.7 billion, a **44% increase vs. Q1 2024**, boosting total client assets to \)9.93 trillion, up 9% year-over-year.
New Accounts: Schwab opened 1.2 million new brokerage accounts, an 8% increase year-over-year, bringing total active brokerage accounts to 37.0 million.
Operating Metrics: The pre-tax profit margin rose to 43.8% (GAAP) and 46.2% (adjusted). Return on average common equity was 18%, and return on tangible common equity was an exceptional 35%.
Trading Activity: Daily average trading volume grew 17% quarter-over-quarter, reflecting heightened market volatility in Q1 2025.
According to CEO Rick Wurster, “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…” (source). This quantitative leap in net new assets highlights continued success in Schwab’s diversified platform including Retail, Advisor Services, and Workplace Financial Services.
Managed Investing Solutions net inflows reached a record, up 15% compared to Q1 2024, evidencing robust demand for Schwab’s wealth management offerings. These metrics reflect Schwab’s ongoing momentum discussed by management in prior earnings calls, where they touted scalable technology and client engagement as strategic differentiators.
Asset Management Fees: Asset management and administration fees climbed to $1.5 billion (+14% YoY).
Banking Operations: Client transactional sweep cash balances ended the quarter at \(407.8 billion, while Schwab reduced Bank Supplemental Funding by \)11.8 billion, a 46% decrease from Q1 2024, optimizing funding mix and interest expense.
Trading and Fee Revenue: Trading revenue increased 11% YoY, propelled by the 17% spike in trading volumes.
CFO Mike Verdeschi added, “We further reduced Bank Supplemental Funding to \(38.1 billion at quarter-end – a 46% decrease versus 1Q24.” Notably, capital return to shareholders was aggressive, with \)1.5 billion common stock repurchased and an 8% dividend increase.
Preliminary Tier 1 Leverage Ratio: Consolidated Tier 1 Leverage hit 9.9%, with adjusted Tier 1 Leverage at 7.1%.
Expenses: Operating expenses (ex-interest) rose 7% YoY, with adjusted expenses up 8%.
Shareholder Returns: 19.2 million shares were repurchased for \(1.5 billion, and the quarterly dividend per share was raised from \)0.25 to $0.27 (+8%).
These results reflect Schwab’s financial discipline and client-centric strategy, themes that have been consistently reinforced during the company’s prior quarterly calls. In recent earnings discussions, Schwab’s management also emphasized the importance of resilience in volatile markets, a message validated by the robust trading and asset inflow numbers this quarter.
Broker of the Year: Schwab was named #1 Overall Broker by StockBrokers.com in 2025, citing leadership in investments, platform, tools, and education.
Workplace and Bank Growth: Workplace participant accounts grew to 5.5 million, and total banking accounts reached 2.1 million, each up 9% YoY.
Management maintains a positive outlook, but notes that expectations remain subject to uncertainty and market risks. Investors are encouraged to consult Schwab’s latest SEC filings for risk disclosures (SEC filings).
Charles Schwab’s Q1 2025 results establish new benchmarks for revenue, client asset growth, and operational efficiency. With an 18% surge in net revenues, 44% accelerated asset inflows, and strengthened capital ratios, Schwab affirms its market leadership. These quantitative achievements, coupled with strong returns for shareholders and industry recognition, reinforce the company’s forward momentum—a theme echoed in both financial disclosures and earnings call commentary.