Charles Schwab Corporation (NYSE: SCHW) reported its Q1 2025 earnings, setting new all-time highs and reinforcing its role as a market-leading financial services powerhouse. This performance underscores the company’s robust execution and commitment to client-centric growth, as recently emphasized in previous earnings calls. Below are the essential figures and discussion points every investor, client, and industry observer needs to know.
Record Net Revenues: $5.6 billion, +18% year-over-year—Schwab’s largest quarterly revenue in history.
GAAP Net Income: \(1.9 billion; Adjusted Net Income: \)2.0 billion (excluding $130 million pre-tax transaction costs).
Diluted Earnings per Share: \(0.99 GAAP (+46% YoY); \)1.04 Adjusted (+41% YoY).
Pre-tax Profit Margins: 43.8% GAAP, up 5.9 percentage points YoY; 46.2% Adjusted, up 5.3 points YoY.
Annualized Return on Average Common Equity: 18% (GAAP), up from 15%. Return on Tangible Common Equity: 35%.
“Schwab delivered growth on all fronts…converting robust organic growth, increased trading volumes, strong Managed Investing net inflows, and sustained bank lending momentum into record net revenues,” said President & CEO Rick Wurster (source).
Net New Assets: $137.7 billion for Q1 2025 (+44% YoY), underscoring Schwab’s appeal during market uncertainty and volatile conditions.
Total Client Assets: Surged 9% YoY to $9.93 trillion, maintaining Schwab’s place in the top tier of U.S. brokerage platforms.
New Brokerage Accounts: 1.2 million openings, +8% YoY. Total active brokerage accounts now 37.0 million.
Managed Investing Net Inflows: +15% YoY, hitting a new quarterly record—sustained demand for advisory and digital solutions.
Trading Activity: Daily average trading volume rose 17% QoQ, reflecting heightened investor engagement amid market volatility.
Industry Leadership: Named “#1 Overall Broker” by StockBrokers.com for 2025.
Client Sweep Cash: $407.8 billion, reflecting typical Q1 deployment and cash management seasonality.
Bank Supplemental Funding: Slashed by \(11.8 billion in Q1 alone (now \)38.1 billion, -46% YoY), signaling disciplined liquidity management amid industry scrutiny of bank funding models.
Capital Return: \(1.5 billion in share repurchases; common dividend increased by 8% to \)0.27 per share.
Capital Ratios: Tier 1 Leverage Ratio of 9.9%; Adjusted Tier 1 Leverage Ratio (including AOCI): 7.1%.
CFO Mike Verdeschi highlighted, “At the same time, we further reduced Bank Supplemental Funding to $38.1 billion at quarter-end—a 46% decrease versus Q1 2024.”
Asset Management and Administration Fees: Jumped 14% YoY to $1.5 billion, showing resilience even as the S&P 500 declined 6% and the Nasdaq fell 8% month-over-month in March 2025 (source).
Trading Revenue: Grew 11% YoY, benefiting from elevated trading activity and product mix.
Margin Balances: Ended at $83.6 billion, essentially flat as clients tactically reduced leverage in the face of macro volatility.
Expense Control: GAAP expenses up just 7% YoY, below revenue growth; adjusted expense base up 8%.
Schwab’s Q1 2025 results echo several recurring themes from previous earnings calls: - Client trust and scale matter: Schwab’s asset gathering (+44% YoY) and client account growth (+8%) tracked the management’s focus on client relationships and technology-fueled efficiency cited in recent calls. - Balance sheet optimization: Ongoing efforts to cut supplemental funding and increase capital ratios reflect risk management strategies shared in prior quarters. - Opportunistic capital return: Share repurchases and dividend hikes continue, echoing strategic capital deployment plans detailed in earlier commentaries.
With $9.93 trillion in client assets, 37 million brokerage accounts, and robust performance across all segments, Charles Schwab is not only riding industry trends but actively shaping them. Its commitment to balance sheet optimization, disciplined expense management, and relentless client acquisition places SCHW at the forefront of U.S. financial services leadership. Expect continued focus on sustainable growth and risk-adjusted returns as we progress through a dynamic market environment.
Contact: - Investor Relations: investor.relations@schwab.com - Public Relations: public.relations@schwab.com
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