What were the key takeaways from The Charles Schwab's earnings call?

What is The Charles Schwab's gross profit margin?

What does The Charles Schwab do and what are its main business segments?

What is the revenue and EPS growth rate for The Charles Schwab year over year?

Did The Charles Schwab beat or miss consensus estimates last quarter?

What guidance did The Charles Schwab's management provide for the next earnings period?

What is The Charles Schwab's latest dividend and current dividend yield?

What were the key takeaways from The Charles Schwab’s earnings call?

- **Record Q1 Growth**: $138B core NNA (+44% YoY), 7.4M daily trades, and 1.2M new accounts highlight Schwab's market leadership.
- **Client Engagement Boom**: 50% YoY retail NNA growth from legacy Ameritrade clients, 15% YoY bank lending growth, and 24/5 trading adoption.
- **Financial Strength**: $5.6B revenue (+18% YoY), $1.04 EPS (+41% YoY), and 60% reduction in high-cost funding drive earnings expansion.
- **Strategic Moves**: 16 new branches, Wealth.com acquisition, and crypto expansion to capture wealth advisory and alternative asset opportunities.
- **April Trading Surge**: Two all-time trading records and 40x research consumption show Schwab's omnichannel resilience in volatility.


**【CEO Summary Section】**
- **Q1 2025 Growth Highlights**: Core net new assets (NNA) reached $138 billion (+44% YoY), with record trading activity (7.4M daily average trades) and 1.2M new accounts opened (+8% YoY). Managed investing net flows hit a new high, and bank lending balances grew 15% YoY to $47.1 billion.
- **Client Engagement**: Retail clients showed strong utilization of margin ($44B in accounts), while advisor services NNA rose 19% YoY. Legacy Ameritrade clients' satisfaction and share of wallet are improving, driving 50% YoY retail NNA growth.
- **Strategic Initiatives**: Expanded branch network with 16 new locations and 250 new financial consultants in 2025. Launched 24/5 trading on thinkorswim and Schwab Wealth Advisory discretionary options. Acquired Wealth.com to enhance digital estate planning.

**【CFO Financial Commentary】**
- **Q1 Financial Performance**: Total revenue $5.6B (+18% YoY), adjusted EPS $1.04 (+41% YoY). Net interest margin (NIM) expanded 20bps QoQ to 2.46%, driven by reduced high-cost bank funding (down 60% YoY to $38.1B). Non-GAAP EPS exceeded expectations at $1.08.
- **Expense Management**: Adjusted expenses grew 6% QoQ and 8% YoY, aligning with 4.5%-5.5% full-year target. Cost per account improved 20% over 10 years. Capital return via $1.5B buybacks and higher dividend.
- **Balance Sheet Strength**: Adjusted Tier 1 leverage ratio at 6.75%, supporting flexibility. NIM expected to expand to 2.55%-2.65% in 2025 despite potential Fed rate cuts.

**【Q&A Key Takeaways】**
- **April Trading Surge**: Two all-time trading records in early April, with 500M log-ins and 40x research consumption. Cash growth offset margin decline, supporting earnings trajectory.
- **Branch Expansion**: 16 new branches and 250 consultants to deepen relationships with high-net-worth clients, targeting 5%-7% organic growth.
- **Crypto Strategy**: 400% traffic growth to Schwab's crypto site, with plans to launch direct spot crypto in 12 months.
- **Risk Management**: Resilient balance sheet with short-duration AFS securities and interest rate swaps. Credit risk minimal, with high FICO scores on residential loans.
- **NNA Momentum**: Legacy Ameritrade clients' satisfaction driving 50% YoY retail NNA growth, closing the gap with Schwab clients.


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