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Schwab's Q2 Profit Soars on Tariff-Driven Trading Surge
ByAinvest
Saturday, Jul 19, 2025 11:51 pm ET1min read
Charles Schwab reported a 60% surge in Q2 profits, driven by increased trading activity from its brokerage customers. The company benefited from a volatile spring marked by investors' reaction to President Trump's trade war. Earnings per share were $1.14, excluding certain one-time items.
Charles Schwab (SCHW) reported a significant 60% increase in its second-quarter profits, driven primarily by a surge in trading activity from its brokerage customers. The company's earnings per share (EPS) were $1.14, excluding certain one-time items [2].The increase in profits can be attributed to a volatile spring marked by investors' reaction to President Trump's ongoing trade war. This period of market volatility led to increased trading activity, which in turn boosted Schwab's trading revenue. The company's trading revenue for the second quarter reached $952 million, up from $777 million in the same period last year [2].
Additionally, Schwab benefited from a rebound in the market at the quarter's end, which allowed the company to charge higher fees and manage a record $10.76 trillion in total client assets. Asset management and administration fees from managing mutual funds and ETFs rose 13.5% to $1.57 billion [2].
The company's strong performance comes as earnings season kicks off with more companies reporting positive surprises than negative ones. Analysts expect S&P 500 companies to report a 5.6% jump in earnings per share during the second quarter, which would mark the slowest pace of earnings growth since the fourth quarter of 2023 [1].
In the weeks ahead, investors will look for additional clues about the health of the US economy and any negative impacts from Trump's tariffs. Companies like Alphabet (GOOGL, GOOG) and Tesla (TSLA) will be reporting their Q2 results, which are expected to lead S&P 500 earnings growth this quarter [1].
References:
[1] https://finance.yahoo.com/news/live/earnings-live-3m-american-express-charles-schwab-q2-results-surpass-estimates-205852119.html
[2] https://www.gurufocus.com/news/2987910/charles-schwab-schw-reports-nearly-60-profit-increase-driven-by-strong-trading-activity
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