How does SCHW's 2024 earnings compare to peers?

Charles Schwab's 2024 earnings exhibit robust performance, surpassing certain peers but showing room for improvement against others. Below is a detailed comparison with key competitors:

1. **Schwab's Earnings Performance**:
- Schwab reported a net income of $5.94 billion for 2024.
- This is a notable figure, especially considering Schwab's significant integration of TD Ameritrade, which added substantial assets and revenue.
2. **Comparison with Peers**:
- **Goldman Sachs (GS)**: Schwab's net income is slightly higher than Goldman Sachs's $14.28 billion. This indicates a strong competitive stance, especially given Goldman Sachs's broader investment banking activities.
- **Morgan Stanley (MS)**: Schwab's net income exceeds Morgan Stanley's $13.53 billion. Morgan Stanley is known for its wealth management and investment services, suggesting that Schwab's focus on retail and institutional brokerage, asset management, and banking services might be more profitable in terms of net income.
- **Vanguard**: The comparison with Vanguard is more nuanced since Vanguard is known for its passive investment strategy. Schwab's active and passive investment capabilities, along with its broad product range, position it competitively against Vanguard's dominant passive market share.
- **Raymond James Financial (RJF)**: Schwab's net income is approximately three times that of Raymond James Financial's $2.07 billion. This highlights Schwab's larger scale and diversified service offerings.
3. **Growth Prospects**:
- Schwab's optimistic outlook for 2025, with expected revenue and earnings growth, suggests a positive trajectory for future performance.
- The company's strategic focus on organic growth, including potential net interest margin expansion, and capital return to shareholders through share buybacks, indicates a forward-thinking approach.
4. **Challenges and Uncertainties**:
- Despite the positive earnings, factors like the future path of interest rates and potential loss of deposits pose significant risks.
- Competition from fintech companies offering commission-free trading and robo-advisors could disrupt the industry.

In conclusion, Schwab's 2024 earnings demonstrate a strong competitive position, especially when compared to Raymond James Financial and Morgan Stanley. While slightly lower than Goldman Sachs, Schwab's focus on retail and institutional services, combined with its strategic growth plans, positions it well for future performance. However, the industry's competitive landscape and external economic factors present ongoing challenges.