Schwab Reports Record $5.6B Quarterly Revenue, $1.9B Net Income for Q1 2025


WESTLAKE, Texas — The Charles Schwab Corporation announced robust financial performance for the first quarter of 2025, delivering record-breaking results across multiple key metrics. Net revenues reached an all-time high of $5.6 billion, representing an 18% year-over-year increase, while GAAP net income surged 40% to $1.9 billion. Adjusted earnings per share totaled $1.04, up 41% from Q1 2024.

Key Financial and Operational Highlights:

Core Net New Assets: Schwab gathered $137.7 billion in core net new assets in Q1, including $59.1 billion in March alone — a 44% increase from the prior year.

Client Assets: Total client assets rose 9% year-over-year to $9.93 trillion, despite market-driven declines in March.

Earnings Growth: Adjusted net income climbed to $2.0 billion, driven by a combination of stronger trading volume, managed investing inflows, and expanded net interest margin, which improved 20 basis points to 2.53%.

Trading Activity: Daily average trades rose 17% sequentially, reflecting a spike in volatility and retail investor engagement.

Shareholder Returns: Schwab repurchased 19.2 million shares for $1.5 billion and raised its dividend by 8% to $0.27 per share.

Segment and Revenue Breakdown:

Asset Management Fees: Rose 14% year-over-year to $1.5 billion, supported by strong net inflows and higher client utilization.

Trading Revenue: Reached $908 million, up 11% from Q1 2024.

Net Interest Revenue: Increased to $2.7 billion, up 21% year-over-year, despite a slight decline in average yield on interest-earning assets.

Bank Deposits and Funding: Supplemental bank funding dropped 46% year-over-year to $38.1 billion. Client transactional sweep cash stood at $407.8 billion.

Client and Account Growth:

New Brokerage Accounts: 1.2 million new brokerage accounts were opened, pushing total active accounts to 37 million.

Workplace Accounts: Increased to 5.5 million, reflecting growth in retirement and stock plan participation.

Capital and Balance Sheet Management:

Schwab reported a Tier 1 leverage ratio of 9.9% (GAAP) and 7.1% (adjusted).

Stockholders’ equity rose 17% year-over-year to $49.5 billion.

Leadership Commentary: President and CEO Rick Wurster highlighted Schwab’s role as a trusted guide amid market uncertainty, noting: “Our unwavering client focus and diversified revenue engine powered record growth.” CFO Mike Verdeschi emphasized improved funding and liquidity, while citing stronger capital returns and continued operational investments.

Outlook and Disclosure: The company reiterated its commitment to long-term growth and noted ongoing improvements in capital efficiency, productivity, and digital capabilities. A webcasted Spring Business Update for institutional investors is being held today.

Charles Schwab Posts Record Q1 2025 Revenue and Strong Earnings Growth

The Charles Schwab Corporation (NYSE: SCHW) reported record first-quarter 2025 revenue of $5.6 billion, an 18% increase from Q1 2024, driven by strong client asset growth, rising trading activity, and continued bank lending momentum. Net income rose 40% year-over-year to $1.9 billion, with adjusted earnings per share reaching $1.04, up 41%.

The company added $137.7 billion in core net new assets during the quarter, a 44% year-over-year increase. Total client assets grew 9% from a year ago to $9.93 trillion, while active brokerage accounts reached 37.0 million.

President and CEO Rick Wurster credited the results to Schwab's ability to serve clients across retail, advisor, and workplace channels, noting that Schwab was named the #1 Overall Broker by StockBrokers.com. “We delivered growth on all fronts,” Wurster said.

Bank sweep cash ended the quarter at $407.8 billion. The company also repurchased $1.5 billion in common stock and raised its dividend by 8% to $0.27 per share.

Trading volumes rose 17% from the previous quarter, helping boost trading revenue by 11% year-over-year. Meanwhile, net interest margin expanded to 2.53%, up 20 basis points sequentially.

Schwab’s adjusted pre-tax profit margin reached 46.2%, and the return on tangible common equity stood at 35%.

CFO Mike Verdeschi noted improvements in balance sheet management, including a $11.8 billion reduction in bank supplemental funding during the quarter.

The company will provide further details during its Spring Business Update webcast.

The Charles Schwab Corporation announced today that it has scheduled a Spring Business Update for institutional investors on Thursday, April 17th . This Update, which will be held via live public webcast, is part of an ongoing series designed to help the investment community keep abreast of recent developments and management’s strategic focus areas. The program is scheduled to run from 7:30 a.m. - 8:30 a.m. CT, 8:30 a.m. - 9:30 a.m. ET. Participants will include President and Chief Executive Officer Rick Wurster and Chief Financial Officer Mike Verdeschi.

The Charles Schwab Corporation announced its financial results for Q4 2024 and the full year 2024, highlighting strong growth across key metrics. The company reported net income of $1.8 billion for Q4 2024, with GAAP earnings per share (EPS) of $0.94 and adjusted EPS of $1.01, representing a 49% increase compared to Q4 2023. For the full year, Schwab achieved net revenues of $19.6 billion, up 4% year-over-year.

Key highlights from Q4 2024 include a 20% year-over-year increase in net revenues to $5.3 billion, driven by strong client engagement, rising net interest margin, and record inflows into Managed Investing Solutions. Core net new assets for the quarter totaled $114.8 billion, contributing to $367 billion in net new assets for 2024—a 20% increase compared to 2023. Total client assets rose 19% year-over-year to reach $10.1 trillion.

Additional achievements for Q4 2024 include:
- A 76% increase in GAAP net income compared to Q4 2023.
- A pre-tax profit margin of 43.3%, or 46.6% on an adjusted basis.
- Record asset management and administration fees of $1.5 billion.
- Client cash balances increased by $35 billion, reducing bank supplemental funding by $14.9 billion.

Schwab also reported strong client activity, with a 23% increase in new brokerage accounts year-over-year and a 34% rise in margin balances compared to year-end 2023. Trading revenue grew 14% year-over-year due to higher volumes and improved trading mix. The company maintained a robust capital position, with a Tier 1 leverage ratio of 9.9% (GAAP) and 6.8% (adjusted).

Looking ahead, Schwab continues to focus on capital efficiency and long-term growth, supported by its expanded client base and successful integration of Ameritrade. The company emphasized its ongoing commitment to providing top-tier customer service and innovative financial solutions.