Charles Schwab (SCHW) Q1 2025 earnings summary

First quarter highlights and client growth

• Core net new assets reached $138 billion, up 44% year-over-year, with 1.2 million new accounts opened and record engagement in wealth solutions and trading activity.

• Total client assets rose 9% to $9.93 trillion, with active brokerage accounts up 5% to 37.0 million.

• Retail NNA grew 50% year-over-year, with Ameritrade client satisfaction and engagement rising as integration effects faded.

• New-to-firm households increased 14%, with 33% of new clients under 30 and nearly 60% under 40, reflecting a diverse and growing client base.

• April saw record trading days and heightened digital engagement, with new account openings two to three times higher than usual.

Financial performance and outlook

• Revenue grew 18% year-over-year to $5.6 billion, and adjusted EPS increased 41% to $1.04, with a 46.2% adjusted pre-tax profit margin.

• Net income for Q1 2025 was $1.9 billion, up 40% year-over-year, with GAAP EPS of $0.99.

• Net interest revenue rose 21% to $2.7 billion, and asset management fees grew 14% to $1.5 billion.

• Bank Supplemental Funding was reduced by $11.8 billion to $38.1 billion at quarter-end.

• Capital ratios finished above the upper end of the target range, with Tier 1 Leverage Ratio at 9.9% and adjusted at 7.1%.

Strategic initiatives and investments

• Expanded branch network with 16 new branches planned for 2025 and 250 new financial and wealth consultants to be added.

• Launched new wealth solutions, including retail alternatives, discretionary options, and a strategic investment in digital estate planning via wealth.com.

• Rolled out 24x5 trading on Thinkorswim, AI-powered support tools, and continued digital process enhancements.

• Focused on deepening client relationships, especially with legacy Ameritrade clients, and broadening wallet share.

• Investing in marketing, technology, and workplace business to drive long-term growth and efficiency.