Charles Schwab (SCHW) Q4 2024 earnings summary

2024 performance highlights

• Net new assets rose 20% to $367 billion for the year, with Q4 core net new assets at $114.8 billion and total new brokerage accounts up 10% to 4.2 million year-over-year.

• Revenue increased 4% for the year to $19.6 billion and 20% in Q4 to $5.3 billion; adjusted EPS up 49% to $1.01 in Q4, with GAAP EPS up 84%.

• Managed investing net flows reached a record $55 billion, up nearly 70% year-over-year, with Pledged Asset Line balances up 69% to $55.2 billion.

• Completed the largest brokerage integration in industry history, converting Ameritrade clients and adding over 17 million accounts and nearly $2 trillion in assets, with asset attrition better than expected.

• Client satisfaction and engagement reached record highs, with all-time high Promoter Scores and recognition for customer service.

Strategic initiatives and investments

• Focused on deepening client relationships, hiring hundreds of new financial consultants, and expanding the branch network in 2025.

• Investing in marketing, trading, wealth, and lending solutions, including alternative investments and enhanced tax, trust, and estate tools.

• Continued investment in technology and AI to drive efficiency, with cost per client account down over 25% in the last decade.

• Expanding 24/5 trading, preparing for spot crypto trading pending regulatory approval, and enhancing RIA support.

• Ongoing innovation in digital solutions and omnichannel service, with recognition as one of Forbes' America's Best Large Employers 2024.

Financial outlook and guidance for 2025

• Projecting total revenue growth of 13%-15% in 2025, with adjusted earnings expected to grow 25%-30% to $4.10-$4.20 per share.

• Anticipates mid-single-digit expense growth (4.5%-5.5%) as investments are made in growth and efficiency.

• Expects full-year adjusted pre-tax margin to expand into the upper 40% range, with 4Q25 approaching 50%.

• Net interest margin projected to rise to 2.55–2.65% for 2025, with further reduction in Bank Supplemental Funding.

• Capital ratios now within target range (Adjusted Tier 1 Leverage Ratio at 6.8%), enabling potential for increased capital returns, including dividends and buybacks.