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Charles Schwab profits jump 32% as client trading activity surges
Schwab reported $2.8 billion in net income and raised full-year revenue guidance to 17.5% to 18.5% after a 30% quarterly rise in customer margin balances.
Charles Schwab said Tuesday that profits surged 32% from a year earlier, helped by record client trading activity during a busy Wall Street quarter. The brokerage reported net income of $2.8 billion, or $1.62 per share on an adjusted basis, while total net revenue rose 21% to $7.1 billion, including a 28% increase in trading revenue, according to the company’s earnings release.
Schwab attributed the results to strong client engagement amid sharp price swings and heavy stock rotation, which boosted stock trading desk activity. Customer margin balances rose 30% from the previous quarter to $165 billion, and the platform’s daily average trades climbed to a record 11.9 million.
The firm also reported net interest income of $3.36 billion, up 19% from a year ago, with its net interest margin expanding by 12 basis points from the prior quarter to 3.00%. Total client assets on Schwab’s platform increased by $1.31 trillion from last quarter to $13.08 trillion.
Schwab further increased its full-year revenue guidance to a range of 17.5% to 18.5% above last year, citing stronger markets and heavier client trading. In remarks tied to the results, CEO Rick Wurster pointed to Schwab’s effort to expand products and said the company has rolled out crypto spot trading, invested in AI-powered tools, and is working with Cboe Global Markets to launch binary options focused on financial and economic events.