Charles Schwab Receives Favorable CCAR Results, Maintaining Robust Capital Buffer

The Charles Schwab Corporation (SCHW) received the results of the Federal Reserve's 2025 Comprehensive Capital Analysis and Review (CCAR). The company's calculated stress capital buffer (SCB) remains well below the 2.5% minimum, leading to a SCB of 2.5%. Schwab's Common Equity Tier 1 (CET1) ratio of 32% as of March 31, 2025 remains well in excess of the regulatory minimum of 4.5%. The company's robust organic growth and effective capital management can benefit shareholders.

The Charles Schwab Corporation (SCHW) has received the results of the Federal Reserve's 2025 Comprehensive Capital Analysis and Review (CCAR). The company's calculated stress capital buffer (SCB) remains well below the 2.5% minimum, leading to a SCB of 2.5%. This positive result reflects Schwab's robust financial health and effective capital management strategies [2].

Schwab's Common Equity Tier 1 (CET1) ratio of 32% as of March 31, 2025, remains well in excess of the regulatory minimum of 4.5%. This high CET1 ratio indicates the company's strong capital position and ability to withstand potential financial stress [2].

The company's organic growth has been impressive, with net new assets increasing by 13% year-over-year (YoY) in May 2025 to reach $35.0 billion. This growth is driven by both new and existing clients, demonstrating Schwab's ability to attract and retain customers [2].

Additionally, the company's stock has seen increased institutional investment. Capital Management Associates Inc. lifted its position in Schwab by 100.6% during the first quarter, while other institutional investors like Atwood & Palmer Inc., Westside Investment Management Inc., and WFA Asset Management Corp. also increased their stakes in the company [3].

Analysts have responded positively to these developments. Piper Sandler, JPMorgan Chase & Co., Cowen, Keefe, Bruyette & Woods, and Truist Financial have all upgraded their price targets on Schwab's stock, reflecting their confidence in the company's future performance [3].

In summary, the Charles Schwab Corporation has received positive results from the Federal Reserve's CCAR, demonstrating its strong financial position and effective capital management. These results, along with the company's robust organic growth and increased institutional investment, suggest a promising outlook for Schwab's shareholders.

References:
[1] https://finance.yahoo.com/news/wells-fargo-raise-dividend-following-150829584.html
[2] https://ca.finance.yahoo.com/news/charles-schwab-corporation-schw-receives-044653241.html
[3] https://www.marketbeat.com/instant-alerts/filing-capital-management-associates-inc-purchases-4088-shares-of-the-charles-schwab-corporation-nyseschw-2025-07-07/