Charles Schwab Corporation: Financial Services Giant with $10.1 trillion in Client Assets

The Charles Schwab Corporation is a leading US retail-oriented financial services company with $10.1 trillion in client assets. It generates most of its revenue and profits through its Charles Schwab Bank and asset-management segments. The firm is known for its retail brokerage offering and is a dominant player in registered investment advisory services. Morningstar raises its fair value estimate for the company.

The Charles Schwab Corporation (NYSE: SCHW) has reported its second-quarter 2025 results, highlighting robust growth and a diversified revenue model. The company's net income for the period totaled $2.1 billion, or $1.08 earnings per share. Excluding pre-tax transaction-related costs, adjusted net income and earnings per share equaled $2.2 billion and $1.14, respectively [1].

Schwab's core net new assets (NNA) grew by 31% year-over-year to $80.3 billion, with new brokerage accounts exceeding 1 million. Total client assets reached a record $10.76 trillion, up 14% year-over-year. This growth reflects the firm's continued appeal to retail investors and registered investment advisors (RIAs), who have turned to Schwab as a trusted partner [1].

The company's diversified revenue model contributed to its 25% year-over-year growth in revenue, reaching a record $5.9 billion. This growth was driven by robust volumes and sustained product utilization, with asset management and administration fees increasing by 14% year-over-year to $1.6 billion [1].

Schwab's financial strength was evident in its strong capital ratios, with preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage equaling 9.8% and 7.2%, respectively. The firm also returned $2.8 billion of excess capital through various forms, including the redemption of approximately $2.5 billion in preferred equity and the repurchase of over $350 million in common stock [1].

The company's brokerage and asset management segments continue to be key drivers of growth. Daily average trading volume remained robust at 7.6 million, up 38% year-over-year, while managed investing solutions net inflows grew 37% versus 2Q24. Schwab's recognition as the Best Investing Platform Overall by U.S. News and its consecutive ranking as the top direct banking satisfaction study winner by J.D. Power underscore the firm's strong market position [1].

Looking ahead, Schwab's forward-looking statements reflect management's expectations of continued growth and strong capital ratios. The company will host its Summer Business Update for institutional investors on July 1, 2025, from 7:30 a.m. to 8:30 a.m. CT. For more information, visit [https://www.aboutschwab.com/schwabevents](https://www.aboutschwab.com/schwabevents) [1].

References:
[1] https://pressroom.aboutschwab.com/press-releases/press-release/2025/25-Revenue-Growth-Powers-Record-2Q25-Results/default.aspx