What drove SCHW's earnings growth in 2024?

Charles Schwab's (SCHW) earnings growth in 2024 was primarily driven by revenue growth, particularly in the areas of securities brokerage and asset management services.

1. **Revenue Growth**: The company's total revenue increased by 4% year-over-year to $19.6 billion in 2024. This growth was driven by an exceptional rise in revenue from operations, which increased by 19.5% year-over-year to $5.33 billion. The winter update for the fourth quarter of 2024 revealed that Schwab added $115 billion in core net new assets, resulting in a total of $367 billion in 2024, marking a 4.3% annualized increase.
2. **Asset Growth**: The growth in assets under management (AUM) was a significant factor. Charles Schwab witnessed a substantial surge in AUM, reaching $10.28 trillion in February 2025. This growth in AUM directly translates to higher revenue through management fees, commissions, and other services.
3. **Trading Activity**: The company's expanded trading services, including the introduction of 24-hour, 5-day-a-week trading on S&P 500 and NASDAQ 100 stocks and select ETFs, likely contributed to higher trading volumes and increased revenue from brokerage services.
4. **Market Conditions**: Despite a challenging market backdrop, characterized by recession risk and tariff fears, Charles Schwab's resilience and adaptability, such as offering expanded trading access to retail clients, helped the company to not only withstand but also capitalize on opportunities in the market.

In summary, Charles Schwab's 2024 earnings growth was driven by robust revenue increases, primarily due to growth in securities brokerage and asset management services, along with strategic expansions and favorable market conditions.