Title: schwab-reports-record-q1-2025-earnings-robust-asset-inflows-and-operational-execution
Charles Schwab Corporation (NYSE: SCHW) has started 2025 with exceptional momentum, reporting record-breaking net revenues of \(5.6 billion in the first quarter—an 18% year-over-year surge [source: [SEC Filing](https://sec.gov/Archives/edgar/data/316709/000031670925000019/a1q25exhibit991.htm)]. This robust growth is bolstered by \)137.7 billion in core net new assets, up 44% from the prior-year period, and demonstrates Schwab’s pivotal position in the financial services sector. Multiple performance metrics reached multi-year or all-time highs, capping off another quarter of operational and strategic success.
Total Net Revenues: $5.6 billion, up 18% year-over-year.
GAAP Net Income: \(1.9 billion (\)0.99/share), a 40% increase over Q1 2024.
Adjusted Net Income: \(2.0 billion (\)1.04/share), reflecting 37% year-over-year growth.
Pre-tax Profit Margin: 43.8% (GAAP) and 46.2% (adjusted).
Return on Average Common Equity: 18% annualized, with return on tangible common equity at an industry-leading 35%.
Core Net New Assets: Schwab attracted $137.7 billion in Q1, equivalent to a 5.5% annualized growth rate and underscoring its client-first model.
Total Client Assets: Reached $9.93 trillion, a 9% increase year-over-year.
New Brokerage Accounts: Openings grew 8% to 1.2 million—driving Schwab’s active brokerage accounts to a record 37.0 million.
Managed Investing Solutions: Net inflows increased 15% year-over-year, hitting a new quarterly record.
Daily Average Trading Volume: Jumped 17% quarter-over-quarter, reflecting elevated client engagement amid “increasing market volatility.”
Bank Supplemental Funding: Reduced by \(11.8 billion in Q1 to \)38.1 billion—a 46% YoY decrease, showcasing disciplined balance sheet management.
Sweep Cash: $407.8 billion at Q1-End, consistent with normal first quarter deployment and cautious client net selling.
Shareholder Returns: \(1.5 billion in common stock repurchases and an 8% increase in dividend per share (\)0.27), reaffirming Schwab’s commitment to capital return.
Tier 1 Leverage Ratio: Stands at 9.9%; adjusted ratio at 7.1%, demonstrating prudent capital management.
Schwab earned the title of #1 Overall Broker by StockBrokers.com in 2025, standing out for its breadth of investment solutions, platforms, and client service.
Schwab’s previous calls have repeatedly emphasized resilience in client asset gathering—even through turbulent markets. Management has prioritized balance sheet fortification and operational efficiency, positioning the company to quickly adapt as macroeconomic and regulatory conditions evolve. The Q1 2025 results echo these themes: strong client trust, market leadership, and continued margin discipline in the face of “increasingly uncertain environment”, as quoted by 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 across Retail, Advisor Services, and Workplace Financial Services.”
Moreover, the Q4 2024 call highlighted a focus on sustained margin improvement, prudent funding reduction, and maintaining industry-leading capital ratios—all of which are evident in this quarter’s performance and return on tangible equity.
Net Interest Margin: Expanded by 20 basis points sequentially to 2.53%.
Asset Management & Administration Fees: Climbed 14% YoY to $1.5 billion.
Trading Revenue: Up 11% YoY, in line with higher volatility.
Capital Expenditures: Increased 28%, reflecting investment in scalable infrastructure.
Expenses (Excl. Interest): Rose 7%, matching growth in core business volumes.
The Q1 2025 8-K highlights management’s expectations for continued capital discipline and client-driven growth, even as Schwab remains vigilant for macro headwinds and regulatory changes (see latest 10-K/10-Q filings).
Schwab’s Q1 2025 results signal enduring client confidence, industry leadership, and prudent financial management. Core organic asset inflows, robust profitability, and scalable technological investments underpin Schwab’s unique value proposition within the fast-evolving broader financial services ecosystem.
For deeper insights and ongoing developments, see the official SEC filing and tune into Schwab’s Spring Business Update webcast details here.
Tags: schwab-q1-2025-records, asset-inflows, client-activity, financial-results, trading-volumes