Try our mobile app

Published: 2025-07-18 20:20:11 ET
<<<  go to SCHW company page
EX-99.1 2 a2q25exhibit991.htm EX-99.1 Document

Exhibit 99.1
cslogoa03a.jpg
25% REVENUE GROWTH POWERS RECORD 2Q25 RESULTS
 Second Quarter Core Net New Assets Equal $80.3 Billion, Up 31% Year-Over-Year
New Accounts Exceed 1 Million and Total Client Assets Reach a Record $10.76 Trillion
Record Quarterly GAAP Earnings Per Share of $1.08, $1.14 Adjusted (1)

WESTLAKE, Texas, July 18, 2025 – The Charles Schwab Corporation reported net income for the second quarter totaling $2.1 billion, or $1.08 earnings per share. Excluding $128 million of pre-tax transaction-related costs, adjusted (1) net income and earnings per share equaled $2.2 billion and $1.14, respectively.

Client Driven
Growth
31%
2Q25 Core NNA
Growth vs. 2Q24
“Retail investors and RIAs continued to turn to Schwab as a trusted partner, opening over 1 million new brokerage accounts and gathering $80.3 billion in core net new assets – up 31% versus 2Q24.”
President & CEO Rick Wurster
Diversified Revenue Growth
25%
2Q25 Revenue
Growth vs. 2Q24
“Schwab delivered growth on all fronts during the second quarter. The firm’s diversified revenue model, coupled with our best-in-class scale and efficiency, produced quarterly records for both revenue and earnings per share.”
President & CEO Rick Wurster
Balance Sheet Management
$10.4B
2Q25 Reduction in Bank Supplemental Funding (2)
“Client transactional sweep cash finished June at $412.1 billion, enabling us to further reduce higher cost bank funding by $10.4 billion to $27.7 billion at quarter-end.”
CFO Mike Verdeschi
Opportunistic Capital Return
$2.8B
of Excess
Capital Returned
“During the second quarter, we continued to enhance stockholder value by returning excess capital through multiple forms – including redeeming approximately $2.5 billion in preferred equity and repurchasing just over $350 million of common stock.”
CFO Mike Verdeschi

2Q25 Client and Business Highlights

•Total client assets increased 14% year-over-year to a record $10.76 trillion
•Core net new assets of $80.3 billion brings year-to-date asset gathering to $218.0 billion – up 39% year-over-year
•New brokerage account openings increased 11% year-over-year to 1.1 million for the quarter, helping active brokerage accounts and total client accounts reach 37.5 million and 45.2 million, respectively
•Managed Investing Solutions net inflows grew 37% versus 2Q24
•Margin balances ended the quarter at $83.4 billion – essentially flat quarter-over-quarter – as investors selectively increased leverage while equity markets rebounded following the disruption in early April
•Daily average trading volume remained robust at 7.6 million – up 38% versus 2Q24
•Charles Schwab recognized as Best Investing Platform Overall by U.S. News (3)
•Charles Schwab Bank ranked #1 in J.D. Power’s U.S. Direct Banking Satisfaction Study for the 7th consecutive year (4)

- 1 -

Three Months Ended
June 30,		%Six Months Ended
June 30,		%
Financial Highlights20252024Change20252024Change
Net revenues (in millions)$5,851 $4,690 25%$11,450 $9,430 21%
Net income (in millions)
GAAP$2,126 $1,332 60%$4,035 $2,694 50%
Adjusted$2,222 $1,465 52%$4,230 $2,934 44%
Diluted earnings per common share
GAAP$1.08 $.66 64%$2.07 $1.34 54%
Adjusted$1.14 $.73 56%$2.17 $1.47 48%
Pre-tax profit margin
GAAP47.9 %37.2 %45.9 %37.6 %
Adjusted50.1 %41.0 %48.2 %40.9 %
Return on average common
stockholders’ equity (annualized)19 %14 %18 %15 %
Return on tangible
common equity (annualized)35 %34 %34 %36 %
Note: Items labeled “adjusted” are non-GAAP financial measures; further details are included on pages 10-12 of this release. All per-share results are rounded to the
          nearest cent, based on weighted-average diluted common shares outstanding.

2Q25 Financial Commentary

•Quarterly net revenues grew year-over-year by 25% to a record $5.9 billion
•Net interest margin expanded sequentially by 12 basis points to 2.65% due primarily to the further reduction of higher cost liabilities and a rebound in securities lending activity
•Client transactional sweep cash balances ended at $412.1 billion, a sequential build of $4.3 billion, reflecting tax seasonality as well as client net equity selling during the period
•Bank Supplemental Funding (2) declined $10.4 billion during the quarter to $27.7 billion at June month-end
•Asset management and administration fees increased by 14% year-over-year to $1.6 billion, powered by organic growth, rebounding equity markets, and sustained product utilization
•Trading revenue increased 23% versus 2Q24 due to robust volumes
•GAAP expenses for the quarter increased 4% year-over-year; excluding second quarter amortization of acquired intangibles of $128 million, adjusted total expenses (1) were up 5% relative to 2Q24
•Capital ratios across the firm remained strong – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) equaling 9.8% and 7.2%, respectively
•Redeemed $2.5 billion Series G Preferred Stock
•Repurchased 3.9 million shares of our common stock for $351 million during the quarter

(1) Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-12 of this release.
(2) Bank Supplemental Funding includes repurchase agreements at the banks, Schwab Bank Certificates of Deposit (CDs), and Federal Home Loan Bank balances.
(3) U.S. News & World Report’s Best Investing Platforms award was given on April 23, 2025. The criteria, evaluation, and ranking were determined by U.S. News & World Report. See https://money.usnews.com/investing/best-brokers/methodology for more information. Schwab paid a licensing fee to U.S. News & World Report for use of the award and logos.
(4) Charles Schwab Bank received the highest score in the checking segment of the J.D. Power 2019–2025 U.S. Direct Banking Satisfaction Studies, which measures overall satisfaction with direct branchless banks. Visit https://jdpower.com/awards for more details. The J.D. Power 2025 U.S. Direct Banking Satisfaction Study is independently conducted, and the participating firms do not pay to participate. Use of study results in promotional materials is subject to a license fee.

Summer Business Update
The company will host its Summer Business Update for institutional investors this morning from 7:30 a.m. - 8:30 a.m. CT, 8:30 a.m. - 9:30 a.m. ET.

Registration for this Update webcast is accessible at https://www.aboutschwab.com/schwabevents.

- 2 -

Forward-Looking Statements
This press release contains forward-looking statements relating to the company’s revenue model, scale and efficiency, and capital ratios. These forward-looking statements reflect management’s expectations as of the date hereof. Achievement of these expectations and objectives is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations. Important factors that may cause such differences are described in the company’s most recent reports on Form 10-K and Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company’s website (https://www.aboutschwab.com/financial-reports) and on the Securities and Exchange Commission’s website (https://www.sec.gov). The company makes no commitment to update any forward-looking statements.

About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 37.5 million active brokerage accounts, 5.6 million workplace plan participant accounts, 2.1 million banking accounts, and $10.76 trillion in client assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com.

Contact Information

MEDIA
Mayura Hooper, 415-667-1525
public.relations@schwab.com

INVESTORS/ANALYSTS
Jeff Edwards, 817-854-6177
investor.relations@schwab.com
- 3 -


THE CHARLES SCHWAB CORPORATION
Consolidated Statements of Income
(In millions, except per share amounts)
(Unaudited)




Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Net Revenues
Interest revenue$3,787 $3,817 $7,544 $7,758 
Interest expense(965)(1,659)(2,016)(3,367)
Net interest revenue2,822 2,158 5,528 4,391 
Asset management and administration fees
1,570 1,383 3,100 2,731 
Trading revenue952 777 1,860 1,594 
Bank deposit account fees247 153 492 336 
Other260 219 470 378 
Total net revenues5,851 4,690 11,450 9,430 
Expenses Excluding Interest
Compensation and benefits1,536 1,450 3,208 2,988 
Professional services291 259 560 500 
Occupancy and equipment270 248 544 513 
Advertising and market development108 107 204 195 
Communications176 172 329 313 
Depreciation and amortization215 233 432 461 
Amortization of acquired intangible assets128 129 258 259 
Regulatory fees and assessments77 96 166 221 
Other247 249 491 435 
Total expenses excluding interest3,048 2,943 6,192 5,885 
Income before taxes on income2,803 1,747 5,258 3,545 
Taxes on income677 415 1,223 851 
Net Income2,126 1,332 4,035 2,694 
Preferred stock dividends and other149 121 262 232 
Net Income Available to Common Stockholders$1,977 $1,211 $3,773 $2,462 
Weighted-Average Common Shares Outstanding:
Basic1,817 1,828 1,819 1,827 
Diluted1,822 1,834 1,825 1,832 
Earnings Per Common Shares Outstanding:
Basic$1.09 $.66 $2.07 $1.35 
Diluted$1.08 $.66 $2.07 $1.34 

        
- 4 -

THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)
Q2-25 % change20252024
vs.vs.SecondFirstFourthThirdSecond
(In millions, except per share amounts and as noted)Q2-24Q1-25QuarterQuarterQuarterQuarterQuarter
Net Revenues
Net interest revenue31 %4 %$2,822 $2,706 $2,531 $2,222 $2,158 
Asset management and administration fees14 %3 %1,570 1,530 1,509 1,476 1,383 
Trading revenue 23 %5 %952 908 873 797 777 
Bank deposit account fees61 %1 %247 245 241 152 153 
Other 19 %24 %260 210 175 200 219 
Total net revenues25 %5 %5,851 5,599 5,329 4,847 4,690 
Expenses Excluding Interest
Compensation and benefits
6 %(8)%1,536 1,672 1,533 1,522 1,450 
Professional services12 %8 %291 269 297 256 259 
Occupancy and equipment9 %(1)%270 274 276 271 248 
Advertising and market development1 %13 %108 96 101 101 107 
Communications2 %15 %176 153 131 147 172 
Depreciation and amortization (8)%(1)%215 217 224 231 233 
Amortization of acquired intangible assets(1)%(2)%128 130 130 130 129 
Regulatory fees and assessments(20)%(13)%77 89 89 88 96 
Other
(1)%1 %247 244 243 259 249 
Total expenses excluding interest4 %(3)%3,048 3,144 3,024 3,005 2,943 
Income before taxes on income60 %14 %2,803 2,455 2,305 1,842 1,747 
Taxes on income63 %24 %677 546 465 434 415 
Net Income60 %11 %2,126 1,909 1,840 1,408 1,332 
Preferred stock dividends and other23 %32 %149 113 123 109 121 
Net Income Available to Common Stockholders63 %10 %$1,977 $1,796 $1,717 $1,299 $1,211 
Earnings per common share:
Basic65 %10 %$1.09 $.99 $.94 $.71 $.66 
Diluted64 %9 %$1.08 $.99 $.94 $.71 $.66 
Dividends declared per common share8 %— $.27 $.27 $.25 $.25 $.25 
Weighted-average common shares outstanding:
Basic(1)%— 1,817 1,817 1,831 1,829 1,828 
Diluted(1)%— 1,822 1,822 1,836 1,834 1,834 
Performance Measures
Pre-tax profit margin47.9 %43.8 %43.3 %38.0 %37.2 %
Return on average common stockholders’ equity (annualized) (1)
19 %18 %18 %14 %14 %
Financial Condition (at quarter end, in billions)
Cash and cash equivalents27 %(8)%$32.2 $35.0 $42.1 $34.9 $25.4 
Cash and investments segregated110 %19 %45.6 38.4 38.2 33.7 21.7 
Receivables from brokers, dealers, and clearing organizations 34 %48 %4.3 2.9 2.4 3.4 3.2 
Receivables from brokerage clients — net14 %(2)%82.8 84.4 85.4 74.0 72.8 
Available for sale securities(28)%(10)%67.6 74.8 83.0 90.0 93.6 
Held to maturity securities(9)%(3)%139.7 143.8 146.5 149.9 153.2 
Bank loans — net19 %7 %50.4 47.1 45.2 43.3 42.2 
Total assets2 %(1)%458.9 462.9 479.8 466.1 449.7 
Bank deposits(8)%(5)%233.1 246.2 259.1 246.5 252.4 
Payables to brokers, dealers, and clearing organizations (2)
N/M18 %18.6 15.7 13.3 16.4 5.9 
Payables to brokerage clients37 %9 %109.4 100.6 101.6 89.2 80.0 
Accrued expenses and other liabilities (2)
2 %(2)%10.8 11.0 12.3 11.2 10.6 
Other short-term borrowings(15)%23 %8.5 6.9 6.0 10.6 10.0 
Federal Home Loan Bank borrowings(63)%(22)%9.0 11.5 16.7 22.6 24.4 
Long-term debt(10)%(6)%20.2 21.5 22.4 22.4 22.4 
Total liabilities1 %(1)%409.5 413.4 431.5 418.8 405.7 
Stockholders’ equity13 %— 49.5 49.5 48.4 47.2 44.0 
Total liabilities and stockholders' equity2 %(1)%458.9 462.9 479.8 466.1 449.7 
Other
Full-time equivalent employees (at quarter end, in thousands)1 %2 %32.6 32.1 32.1 32.1 32.3 
Capital expenditures — purchases of equipment, office facilities, and property,
  net (in millions)		48 %(13)%$136 $156 $258 $135 $92 
Expenses excluding interest as a percentage of average client assets (annualized)0.12 %0.12 %0.12 %0.12 %0.13 %
Clients’ Daily Average Trades (DATs) (in thousands)
38 %2 %7,571 7,391 6,312 5,697 5,486 
Number of Trading Days(2)%3 %62.0 60.0 63.0 63.5 63.0 
Revenue Per Trade (3)
(10)%(1)%$2.03 $2.05 $2.20 $2.20 $2.25 
(1) Return on average common stockholders’ equity is calculated using net income available to common stockholders divided by average common stockholders’ equity.
(2) Beginning in the fourth quarter of 2024, payables to brokers, dealers, and clearing organizations are presented separately from accrued expenses and other liabilities. Prior period amounts have been reclassified to reflect this change. Payables to brokers, dealers, and clearing organizations include securities loaned.
(3) Revenue per trade is calculated as trading revenue divided by the product of DATs multiplied by the number of trading days.
N/M Not meaningful. Percentage changes greater than 200% are presented as not meaningful.
- 5 -

THE CHARLES SCHWAB CORPORATION
Net Interest Revenue Information
(In millions, except ratios or as noted)
(Unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Average
Balance		Interest
Revenue/
Expense		Average
Yield/
Rate		Average
Balance		Interest
Revenue/
Expense		Average
Yield/
Rate		Average
Balance		Interest
Revenue/
Expense		Average
Yield/
Rate		Average
Balance		Interest
Revenue/
Expense		Average
Yield/
Rate
Interest-earning assets
Cash and cash equivalents$28,000 $305 4.30 %$28,839 $382 5.24 %$29,236 $633 4.30 %$31,394 $836 5.26 %
Cash and investments segregated47,574 506 4.20 %21,493 281 5.17 %43,117 918 4.23 %25,503 669 5.19 %
Receivables from brokerage clients79,616 1,332 6.62 %68,715 1,351 7.78 %81,367 2,714 6.63 %66,259 2,611 7.80 %
Available for sale securities (1)
77,750 405 2.08 %104,045 555 2.13 %81,151 838 2.06 %107,956 1,149 2.12 %
Held to maturity securities (1)
141,098 602 1.70 %154,314 658 1.70 %142,740 1,224 1.71 %155,862 1,348 1.73 %
Bank loans48,691 518 4.27 %41,562 460 4.44 %47,374 1,011 4.29 %41,046 900 4.40 %
Total interest-earning assets422,729 3,668 3.45 %418,968 3,687 3.50 %424,985 7,338 3.44 %428,020 7,513 3.49 %
Securities lending revenue96 95 156 171 
Other interest revenue23 35 50 74 
Total interest-earning assets$422,729 $3,787 3.56 %$418,968 $3,817 3.62 %$424,985 $7,544 3.54 %$428,020 $7,758 3.60 %
Funding sources
Bank deposits$237,645 $326 0.55 %$258,119 $840 1.31 %$241,660 $762 0.64 %$266,243 $1,761 1.33 %
Payables to brokers, dealers, and
  clearing organizations (2)
16,657 167 3.97 %5,642 57 3.98 %15,424 304 3.93 %5,577 112 3.97 %
Payables to brokerage clients92,425 69 0.30 %67,680 77 0.45 %91,305 120 0.27 %68,011 150 0.44 %
Other short-term borrowings7,644 87 4.55 %9,268 129 5.59 %7,172 169 4.74 %8,327 232 5.60 %
Federal Home Loan Bank borrowings9,753 110 4.48 %25,582 348 5.42 %10,236 243 4.72 %25,220 678 5.35 %
Long-term debt20,624 206 3.94 %22,460 208 3.70 %21,448 418 3.87 %23,730 432 3.64 %
Total interest-bearing liabilities (2)
384,748 965 1.00 %388,751 1,659 1.71 %387,245 2,016 1.04 %397,108 3,365 1.70 %
Non-interest-bearing funding sources (2)
37,981 30,217 37,740 30,912 
Other interest expense— — — 2 
Total funding sources$422,729 $965 0.91 %$418,968 $1,659 1.59 %$424,985 $2,016 0.95 %$428,020 $3,367 1.57 %
Net interest revenue$2,822 2.65 %$2,158 2.03 %$5,528 2.59 %$4,391 2.03 %
(1) Amounts have been calculated based on amortized cost.
(2) Beginning in the fourth quarter of 2024, payables to brokers, dealers, and clearing organizations is presented separately from non-interest-bearing funding sources and included in total interest-bearing liabilities. This line item includes securities loaned and related interest expense. Prior period amounts have been reclassified to reflect this change.
- 6 -

THE CHARLES SCHWAB CORPORATION
Asset Management and Administration Fees Information
(In millions, except ratios or as noted)
(Unaudited)

Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Average
Client
Assets		RevenueAverage
Fee		Average
Client
Assets		RevenueAverage
Fee		Average
Client
Assets		RevenueAverage
Fee		Average
Client
Assets		RevenueAverage
Fee
Schwab money market funds$644,811 $442 0.27 %$523,665 $357 0.27 %$633,143 $860 0.27 %$511,776 $693 0.27 %
Schwab equity and bond funds, exchange-traded
  funds (ETFs), and collective trust funds (CTFs) 		661,793 122 0.07 %565,848 112 0.08 %660,191 244 0.07 %552,755 219 0.08 %
Mutual Fund OneSource ® and other no-
  transaction-fee funds
350,487 218 0.25 %338,198 214 0.25 %355,092 440 0.25 %326,387 423 0.26 %
Other third-party mutual funds and ETFs603,509 102 0.07 %600,902 102 0.07 %613,576 205 0.07 %603,263 208 0.07 %
Total mutual funds, ETFs, and CTFs (1)
$2,260,600 $884 0.16 %$2,028,613 $785 0.16 %$2,262,002 $1,749 0.16 %$1,994,181 $1,543 0.16 %
Managed investing solutions (1)
Fee-based$595,203 $589 0.40 %$525,689 $510 0.39 %$592,843 $1,158 0.39 %$515,911 $1,013 0.39 %
Non-fee-based120,726 — — 110,234 — — 120,584 — — 108,133 — — 
Total managed investing solutions$715,929 $589 0.33 %$635,923 $510 0.32 %$713,427 $1,158 0.33 %$624,044 $1,013 0.33 %
Other balance-based fees (2)
846,552 75 0.04 %763,750 69 0.04 %844,053 152 0.04 %741,599 138 0.04 %
Other (3)
22 19 41 37 
Total asset management and administration fees$1,570 $1,383 $3,100 $2,731 
(1) Managed investing solutions includes managed portfolios, specialized strategies, and customized investment advice such as Schwab Wealth AdvisoryTM, Schwab Managed PortfoliosTM, Managed Account Select®, Schwab Advisor Network®, Windhaven Strategies®, ThomasPartners® Strategies, Wasmer SchroederTM Strategies, Schwab Index Advantage advised retirement plan balances, Schwab Intelligent Portfolios®, Institutional Intelligent Portfolios®, Schwab Intelligent Portfolios Premium®, AdvisorDirect®, Essential Portfolios, Selective Portfolios, and Personalized Portfolios; as well as legacy non-fee managed investing solutions including Schwab Advisor Source and certain retirement plan balances. Average client assets for managed investing solutions may also include the asset balances contained in the mutual fund and/or ETF categories listed above. For the total end of period view, please see the Monthly Activity Report.
(2) Includes various asset-related fees, such as trust fees, 401(k) recordkeeping fees, and mutual fund clearing fees and other service fees.
(3) Includes miscellaneous service and transaction fees relating to mutual funds and ETFs that are not balance-based.
- 7 -

THE CHARLES SCHWAB CORPORATION
Growth in Client Assets and Accounts
(Unaudited)

Q2-25 % Change20252024
vs.vs.SecondFirstFourthThirdSecond
(In billions, at quarter end, except as noted)Q2-24Q1-25QuarterQuarterQuarterQuarterQuarter
Assets in client accounts
Schwab One®, certain cash equivalents, and bank deposits
4 %(1)%$342.7 $345.2 $358.8 $334.1 $330.7 
Bank deposit account balances(3)%(2)%82.1 83.7 87.5 84.0 84.5 
Proprietary mutual funds (Schwab Funds® and Laudus Funds®) and CTFs
Money market funds (1)
22 %2 %653.5 641.5 596.5 562.1 533.6 
Equity and bond funds and CTFs (2)
16 %10 %249.7 227.0 232.2 228.9 214.4 
Total proprietary mutual funds and CTFs21 %4 %903.2 868.5 828.7 791.0 748.0 
Mutual Fund Marketplace® (3)
Mutual Fund OneSource® and other no-transaction-fee funds
32 %33 %453.9 340.3 347.8 358.0 344.8 
Mutual fund clearing services13 %6 %298.3 280.6 280.7 280.8 264.7 
Other third-party mutual funds(1)%(2)%1,168.5 1,195.4 1,211.1 1,236.5 1,177.5 
Total Mutual Fund Marketplace7 %6 %1,920.7 1,816.3 1,839.6 1,875.3 1,787.0 
Total mutual fund assets11 %5 %2,823.9 2,684.8 2,668.3 2,666.3 2,535.0 
Exchange-traded funds
Proprietary ETFs (2)
26 %10 %439.7 398.2 395.0 385.9 349.6 
Other third-party ETFs25 %11 %2,175.6 1,960.1 1,940.6 1,888.2 1,738.6 
Total ETF assets25 %11 %2,615.3 2,358.3 2,335.6 2,274.1 2,088.2 
Equity and other securities15 %11 %4,188.7 3,765.5 3,972.6 3,839.6 3,648.8 
Fixed income securities(1)%2 %788.0 775.8 762.3 795.4 792.0 
Margin loans outstanding16 %— (83.4)(83.6)(83.8)(73.0)(71.7)
Total client assets14 %8 %$10,757.3 $9,929.7 $10,101.3 $9,920.5 $9,407.5 
Client assets by business (4)
Investor Services (5)
14 %9 %$6,069.9 $5,557.4 $5,721.6 $5,576.7 $5,317.5 
Advisor Services (6)
15 %7 %4,687.4 4,372.3 4,379.7 4,343.8 4,090.0 
Total client assets14 %8 %$10,757.3 $9,929.7 $10,101.3 $9,920.5 $9,407.5 
Net growth in assets in client accounts (for the quarter ended)
Net new assets by business (4)
Investor Services (5)
(22)%(55)%$31.2 $69.5 $46.2 $37.2 $40.1 
Advisor Services (6)
24 %(33)%42.4 62.9 62.2 53.6 34.1 
Total net new assets(1)%(44)%$73.6 $132.4 $108.4 $90.8 $74.2 
Net market gains (losses)754.0 (304.0)72.4 422.2 214.9 
Net growth (decline)$827.6 $(171.6)$180.8 $513.0 $289.1 
New brokerage accounts (in thousands, for the quarter ended)11 %(7)%1,098 1,183 1,119 972 985 
Client accounts (in thousands)
Active brokerage accounts5 %1 %37,476 37,011 36,456 35,982 35,612 
Banking accounts9 %2 %2,096 2,050 1,998 1,954 1,931 
Workplace Plan Participant Accounts (7)
4 %2 %5,586 5,495 5,399 5,388 5,363 
(1) Total client assets in purchased money market funds are located at: https://www.aboutschwab.com/investor-relations.
(2) Includes balances held on and off the Schwab platform. As of June 30, 2025, off-platform equity and bond funds, CTFs, and ETFs were $38.0 billion, $4.5 billion, and $156.9 billion, respectively.
(3) Excludes all proprietary mutual funds and ETFs.
(4) In the fourth quarter of 2024, Retirement Business Services moved from Advisor Services to Investor Services. Prior periods have been recast.
(5) Second quarter of 2025 includes net outflows of $6.7 billion from off-platform Schwab Bank Retail CDs. First quarter of 2025 includes net outflows of $5.3 billion from off-platform Schwab Bank Retail CDs. Fourth quarter of 2024 includes net outflows of $5.5 billion from off-platform Schwab Bank Retail CDs and an outflow of $0.6 billion from a large international relationship. Third quarter of 2024 includes net outflows of $4.4 billion from off-platform Schwab Bank Retail CDs and an outflow of $0.1 billion from a large international relationship. Second quarter of 2024 includes net inflows of $2.7 billion from off-platform Schwab Bank Retail CDs and an inflow of $10.3 billion from a mutual fund clearing services client.
(6) Fourth quarter of 2024 includes an outflow of $0.3 billion from a large international relationship.
(7) Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business.

- 8 -

The Charles Schwab Corporation Monthly Activity Report For June 2025
2024
2025
Change
JunJulAugSepOctNovDecJanFebMarAprMayJunMo.Yr.
Market Indices (at month end)
Dow Jones Industrial Average®
39,119 40,843 41,563 42,330 41,763 44,911 42,544 44,545 43,841 42,002 40,669 42,270 44,095 4 %13 %
Nasdaq Composite®
17,733 17,599 17,714 18,189 18,095 19,218 19,311 19,627 18,847 17,299 17,446 19,114 20,370 7 %15 %
Standard & Poor’s® 500
5,460 5,522 5,648 5,762 5,705 6,032 5,882 6,041 5,955 5,612 5,569 5,912 6,205 5 %14 %
Client Assets (in billions of dollars)
Beginning Client Assets9,206.3 9,407.5 9,572.1 9,737.7 9,920.5 9,852.0 10,305.4 10,101.3 10,333.1 10,280.2 9,929.7 9,892.2 10,349.0 
Net New Assets (1)
33.2 29.0 31.5 30.3 22.7 25.5 60.2 30.5 46.6 55.3 1.1 33.6 38.9 16 %17 %
Net Market Gains (Losses)168.0 135.6 134.1 152.5 (91.2)427.9 (264.3)201.3 (99.5)(405.8)(38.6)423.2 369.4 
Total Client Assets (at month end)9,407.5 9,572.1 9,737.7 9,920.5 9,852.0 10,305.4 10,101.3 10,333.1 10,280.2 9,929.7 9,892.2 10,349.0 10,757.3 4 %14 %
Core Net New Assets (1,2)
29.1 29.0 32.8 33.5 24.6 28.8 61.4 30.6 48.0 59.1 2.7 35.0 42.6 22 %46 %
Receiving Ongoing Advisory Services (at month end)
Investor Services632.9 649.1 663.7 675.1 665.6 688.9 682.0 698.7 703.5 688.8 688.2 711.2 737.6 4 %17 %
Advisor Services
4,090.0 4,185.4 4,268.1 4,343.8 4,303.3 4,489.2 4,379.7 4,496.6 4,493.2 4,372.3 4,353.0 4,525.6 4,687.4 4 %15 %
Client Accounts (at month end, in thousands)
Active Brokerage Accounts35,612 35,743 35,859 35,982 36,073 36,222 36,456 36,709 36,861 37,011 37,254 37,375 37,476 — 5 %
Banking Accounts 1,931 1,937 1,940 1,954 1,967 1,980 1,998 2,019 2,033 2,050 2,066 2,077 2,096 1 %9 %
Workplace Plan Participant Accounts (3)
5,363 5,382 5,373 5,388 5,407 5,393 5,399 5,450 5,464 5,495 5,518 5,563 5,586 — 4 %
Client Activity
New Brokerage Accounts (in thousands)310 327 324 321 331 357 431 433 362 388 439 336 323 (4)%4 %
Client Cash as a Percentage of Client Assets (4)
9.7 %9.6 %9.5 %9.5 %9.8 %9.5 %10.1 %9.8 %10.0 %10.6 %10.5 %10.1 %9.9 % (20) bp  20 bp
Derivative Trades as a Percentage of Total Trades21.3 %21.2 %20.8 %21.5 %21.4 %19.7 %18.6 %19.3 %19.9 %19.5 %18.4 %21.0 %20.8 %(20) bp(50) bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (5)
417,150 417,379 420,191 420,203 422,327 425,789 431,177 431,523 424,805 425,228 430,884 419,638 417,768 — — 
Average Margin Balances69,730 73,206 73,326 72,755 74,105 76,932 81,507 82,551 84,233 82,725 77,478 79,132 82,339 4 %18 %
Average Bank Deposit Account Balances (6)
85,195 83,979 82,806 82,336 83,261 84,385 85,384 84,790 83,089 84,302 84,060 81,495 81,014 (1)%(5)%
Mutual Funds and Exchange-Traded Funds
  Net Buys (Sells) (7,8) (in millions of dollars)
Equities3,379 10,908 5,609 5,217 7,176 13,226 14,805 10,050 4,987 (1,221)7,950 10,473 8,987 
Hybrid(843)(1,155)(1,377)(432)(1,397)(329)124 (1,324)(464)(603)(1,663)(287)(1,038)
Bonds6,346 8,651 10,919 11,015 10,442 7,473 10,969 8,747 12,162 11,438 (1,490)8,483 6,050 
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (7)
(4,254)(4,679)(4,003)(1,261)(4,905)(4,492)(4,331)(6,785)(3,971)(8,537)(13,955)(3,224)(5,351)
Exchange-Traded Funds (8)
13,136 23,083 19,154 17,061 21,126 24,862 30,229 24,258 20,656 18,151 18,752 21,893 19,350 
Money Market Funds3,858 9,110 8,048 9,672 11,032 9,172 8,956 11,584 12,306 14,586 (6,158)5,794 5,814 
Note: Certain supplemental details related to the information above can be found at: https://www.aboutschwab.com/financial-reports.
(1) Unless otherwise noted, differences between net new assets and core net new assets are net flows from off-platform Schwab Bank Retail CDs. 2024 also includes outflows from a large international relationship of $0.1 billion in August, $0.3 billion in October, and $0.6 billion in November.
(2) Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $25 billion beginning in 2025; $10 billion in prior periods) relating to a specific client, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods.
(3) Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business.
(4) Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets; client cash excludes brokered CDs issued by Charles Schwab Bank.
(5) Represents average total interest-earning assets on the Company’s balance sheet.
(6) Represents average clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions.
(7) Represents the principal value of client mutual fund transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to investment managers. Excludes money market fund transactions.
(8) Represents the principal value of client ETF transactions handled by Schwab, including transactions in proprietary ETFs.

- 9 -

THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)
In addition to disclosing financial results in accordance with generally accepted accounting principles in the U.S. (GAAP), Schwab’s second quarter earnings release contains references to the non-GAAP financial measures described below. We believe these non-GAAP financial measures provide useful supplemental information about the financial performance of the Company, and facilitate meaningful comparison of Schwab’s results in the current period to both historic and future results. These non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may not be comparable to non-GAAP financial measures presented by other companies.

Schwab’s use of non-GAAP measures is reflective of certain adjustments made to GAAP financial measures as described below.
Non-GAAP Adjustment or MeasureDefinitionUsefulness to Investors and Uses by Management
Acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costsSchwab adjusts certain GAAP financial measures to exclude the impact of acquisition and integration-related costs incurred as a result of the Company’s acquisitions, amortization of acquired intangible assets, restructuring costs, and, where applicable, the income tax effect of these expenses.

Adjustments made to exclude amortization of acquired intangible assets are reflective of all acquired intangible assets, which were recorded as part of purchase accounting. These acquired intangible assets contribute to the Company’s revenue generation. Amortization of acquired intangible assets will continue in future periods over their remaining useful lives.		We exclude acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs for the purpose of calculating certain non-GAAP measures because we believe doing so provides additional transparency of Schwab’s ongoing operations, and is useful in both evaluating the operating performance of the business and facilitating comparison of results with prior and future periods.

Costs related to acquisition and integration or restructuring fluctuate based on the timing of acquisitions, integration and restructuring activities, thereby limiting comparability of results among periods, and are not representative of the costs of running the Company’s ongoing business. Amortization of acquired intangible assets is excluded because management does not believe it is indicative of the Company’s underlying operating performance.
Return on tangible common equityReturn on tangible common equity represents annualized adjusted net income available to common stockholders as a percentage of average tangible common equity. Tangible common equity represents common equity less goodwill, acquired intangible assets — net, and related deferred tax liabilities.Acquisitions typically result in the recognition of significant amounts of goodwill and acquired intangible assets. We believe return on tangible common equity may be useful to investors as a supplemental measure to facilitate assessing capital efficiency and returns relative to the composition of Schwab’s balance sheet.
Adjusted Tier 1 Leverage Ratio
Adjusted Tier 1 Leverage Ratio represents the Tier 1 Leverage Ratio as prescribed by bank regulatory guidance for the consolidated company and for Charles Schwab Bank, SSB (CSB), adjusted to reflect the inclusion of accumulated other comprehensive income (AOCI) in the ratio.
Inclusion of the impacts of AOCI in the Company’s Tier 1 Leverage Ratio provides additional information regarding the Company’s current capital position. We believe Adjusted Tier 1 Leverage Ratio may be useful to investors as a supplemental measure of the Company’s capital levels.

The Company also uses adjusted diluted EPS and return on tangible common equity as components of performance criteria for employee bonus and certain executive management incentive compensation arrangements. The Compensation Committee of CSC’s Board of Directors maintains discretion in evaluating performance against these criteria. Additionally, the Company uses adjusted Tier 1 Leverage Ratio in managing capital, including its use of the measure as its long-term operating objective.


- 10 -

THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)
The tables below present reconciliations of GAAP measures to non-GAAP measures:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Total
Expenses
Excluding
Interest		Net
Income		Total
Expenses
Excluding
Interest		Net
Income		Total
Expenses
Excluding
Interest		Net
Income		Total
Expenses Excluding
Interest		Net
Income
Total expenses excluding interest (GAAP),
  Net income (GAAP)		$3,048 $2,126 $2,943 $1,332 $6,192 $4,035 $5,885 $2,694 
Amortization of acquired intangible assets(128)128 (129)129 (258)258 (259)259 
Acquisition and integration-related costs (1)
— — (36)36 — — (74)74 
Restructuring costs (2)
— — (10)10 — — 18 (18)
Income tax effects (3)
N/A(32)N/A(42)N/A(63)N/A(75)
Adjusted total expenses (non-GAAP),
  Adjusted net income (non-GAAP)		$2,920 $2,222 $2,768 $1,465 $5,934 $4,230 $5,570 $2,934 
(1) There were no acquisition and integration-related costs for the three and six months ended June 30, 2025. Acquisition and integration-related costs for the three and six months ended June 30, 2024 primarily consist of $18 million and $35 million of compensation and benefits, $12 million and $29 million of professional services, and $5 million of depreciation and amortization.
(2) There were no restructuring costs for the three and six months ended June 30, 2025. Restructuring costs for the three and six months ended June 30, 2024 reflect a benefit due to a change in estimate of $3 million and $34 million in compensation and benefits, offset by $1 million and $3 million of occupancy and equipment expense and $12 million and $13 million of other expense.
(3) The income tax effects of the non-GAAP adjustments are determined using an effective tax rate reflecting the exclusion of non-deductible acquisition costs and are used to present the acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs on an after-tax basis.
N/A Not applicable.

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Amount% of
Total Net Revenues		Amount% of
Total Net Revenues		Amount% of
Total Net Revenues		Amount% of
Total Net Revenues
Income before taxes on income (GAAP),
  Pre-tax profit margin (GAAP)		$2,803 47.9 %$1,747 37.2 %$5,258 45.9 %$3,545 37.6 %
Amortization of acquired intangible assets128 2.2 %129 2.8 %258 2.3 %259 2.7 %
Acquisition and integration-related costs— — 36 0.8 %— — 74 0.8 %
Restructuring costs
— — 10 0.2 %— — (18)(0.2)%
Adjusted income before taxes on income (non-GAAP),
  Adjusted pre-tax profit margin (non-GAAP)		$2,931 50.1 %$1,922 41.0 %$5,516 48.2 %$3,860 40.9 %

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
AmountDiluted EPSAmountDiluted EPSAmountDiluted
EPS		AmountDiluted
EPS
Net income available to common stockholders (GAAP),
  Earnings per common share — diluted (GAAP)		$1,977 $1.08 $1,211 $.66 $3,773 $2.07 $2,462 $1.34 
Amortization of acquired intangible assets128 .07 129 .07 258 .14 259 .14 
Acquisition and integration-related costs— — 36 .02 — — 74 .04 
Restructuring costs— — 10 .01 — — (18)(.01)
Income tax effects(32)(.01)(42)(.03)(63)(.04)(75)(.04)
Adjusted net income available to common stockholders
  (non-GAAP), Adjusted diluted EPS (non-GAAP)		$2,073 $1.14 $1,344 $.73 $3,968 $2.17 $2,702 $1.47 

- 11 -

THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Return on average common stockholders’ equity (GAAP)
19 %14 %18 %15 %
Average common stockholders’ equity
$41,504 $33,991 $40,936 $33,264 
Less: Average goodwill(11,951)(11,951)(11,951)(11,951)
Less: Average acquired intangible assets — net(7,551)(8,067)(7,615)(8,132)
Plus: Average deferred tax liabilities related to goodwill
  and acquired intangible assets — net		1,710 1,747 1,716 1,753 
Average tangible common equity$23,712 $15,720 $23,086 $14,934 
Adjusted net income available to common stockholders (1)
$2,073 $1,344 $3,968 $2,702 
Return on tangible common equity (non-GAAP)35 %34 %34 %36 %
(1) See table above for the reconciliation of net income available to common stockholders to adjusted net income available to common stockholders (non-GAAP).

(Preliminary)
June 30, 2025
CSCCSB
Tier 1 Leverage Ratio (GAAP)
9.8 %12.2 %
Tier 1 Capital
$44,267 $32,114 
Plus: AOCI adjustment(12,589)(10,932)
Adjusted Tier 1 Capital31,678 21,182 
Average assets with regulatory adjustments
451,314 264,107 
Plus: AOCI adjustment(13,231)(11,623)
Adjusted average assets with regulatory adjustments$438,083 $252,484 
Adjusted Tier 1 Leverage Ratio (non-GAAP)
7.2 %8.4 %
- 12 -