Charles Schwab Corporation (SCHW) Q2 2025 Financial Results Summary
On July 18, 2025, Charles Schwab Corporation released its financial results for the second quarter of 2025 (Q2 2025), showcasing strong growth metrics and record-breaking earnings.
Key Highlights of Q2 2025 Financial Results
- Net Income and Earnings:
- GAAP net income: $2.1 billion, representing a 60% increase compared to $1.3 billion in Q2 2024.
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Earnings per Share (EPS):
- GAAP EPS: $1.08, up 64% from $0.66 in the same quarter last year.
- Adjusted EPS: $1.14, reflecting a 56% increase from $0.73 in Q2 2024.
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Revenue Growth:
- Total net revenues for Q2 2025: $5.9 billion, a 25% increase year-over-year from $4.7 billion in Q2 2024.
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This revenue increase comes from a strong diversified revenue model, with significant contributions from various segments:
- Trading revenue saw a 23% increase from $777 million to $952 million.
- Asset management and administration fees rose 14%, reaching $1.6 billion.
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Client Growth Metrics:
- Core net new assets: $80.3 billion, representing a 31% increase from $61.3 billion in Q2 2024.
- Total client assets grew to a record $10.76 trillion, marking a 14% increase year-over-year.
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Over 1 million new brokerage accounts were opened during the quarter.
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Balance Sheet Management:
- Bank Supplemental Funding decreased by $10.4 billion, down to $27.7 billion at quarter-end.
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Margin balances reached $83.4 billion, remaining flat quarter-over-quarter.
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Dividends and Share Repurchasing:
- Quarterly dividend declared: $0.27 per share, reflecting an 8% increase from $0.25 per share in the prior year.
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The company repurchased approximately 3.9 million shares of common stock for $351 million during Q2 2025.
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Cost and Efficiency:
- Total expenses for the quarter increased by 4% year-over-year to $3.0 billion, with a notable rise in GAAP expenses by 4% as well.
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Adjusted total expenses, excluding transaction-related costs of $128 million, rose by 5% compared to Q2 2024.
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Profitability Ratios:
- GAAP pre-tax profit margin improved to 47.9%, up from 37.2% in Q2 2024.
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Return on average common stockholders’ equity (ROE): 19%, an increase from 14% a year ago.
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Additional Achievements:
- Charles Schwab was recognized as the Best Investing Platform Overall by U.S. News, enhancing its reputation in the financial services sector.
Summary of Financial Metrics (Compared to Q2 2024)
| Metric | Q2 2025 | Q2 2024 | Change |
|---|---|---|---|
| Net Revenues | $5.851 billion | $4.690 billion | 25% |
| GAAP Net Income | $2.126 billion | $1.332 billion | 60% |
| Adjusted Net Income | $2.222 billion | $1.465 billion | 52% |
| GAAP EPS | $1.08 | $0.66 | 64% |
| Adjusted EPS | $1.14 | $0.73 | 56% |
| Total Client Assets | $10.76 trillion | $9.47 trillion | 14% |
| Core Net New Assets | $80.3 billion | $61.3 billion | 31% |
| New Accounts | 1.1 million | 0.99 million | 11% |
| Daily Average Trading Volume | 7.6 million | 5.5 million | 38% |
| Cash Balances | $412.1 billion | – | – |
In conclusion, Charles Schwab Corporation demonstrated robust financial performance in Q2 2025, marked by significant revenue growth, increased net income, and effective balance sheet management. The company continues to strengthen its position in the financial services industry while delivering value to its shareholders.
Here are the extracted tables from the press release:
Consolidated Statements of Income
In millions, except per share amounts
| Net Revenues | 2025 | 2024 | 2025 | 2024 |
|---|---|---|---|---|
| Interest revenue | $ 3,787 | $ 3,817 | $ 7,544 | $ 7,758 |
| Interest expense | -965 | -1,659 | -2,016 | -3,367 |
| Net interest revenue | 2,822 | 2,158 | 5,528 | 4,391 |
| Asset management and administration fees | 1,570 | 1,383 | 3,100 | 2,731 |
| Trading revenue | 952 | 777 | 1,860 | 1,594 |
| Bank deposit account fees | 247 | 153 | 492 | 336 |
| Other | 260 | 219 | 470 | 378 |
| Total net revenues | 5,851 | 4,690 | 11,450 | 9,430 |
| Expenses Excluding Interest | ||||
| Compensation and benefits | 1,536 | 1,450 | 3,208 | 2,988 |
| Professional services | 291 | 259 | 560 | 500 |
| Occupancy and equipment | 270 | 248 | 544 | 513 |
| Advertising and market development | 108 | 107 | 204 | 195 |
| Communications | 176 | 172 | 329 | 313 |
| Depreciation and amortization | 215 | 233 | 432 | 461 |
| Amortization of acquired intangible assets | 128 | 129 | 258 | 259 |
| Regulatory fees and assessments | 77 | 96 | 166 | 221 |
| Other | 247 | 249 | 491 | 435 |
| Total expenses excluding interest | 3,048 | 2,943 | 6,192 | 5,885 |
| Income before taxes on income | 2,803 | 1,747 | 5,258 | 3,545 |
| Taxes on income | 677 | 415 | 1,223 | 851 |
| Net Income | 2,126 | 1,332 | 4,035 | 2,694 |
| Preferred stock dividends and other | 149 | 121 | 262 | 232 |
| Net Income Available to Common Stockholders | $ 1,977 | $ 1,211 | $ 3,773 | $ 2,462 |
| Weighted-Average Common Shares Outstanding | ||||
| Basic | 1,817 | 1,828 | 1,819 | 1,827 |
| Diluted | 1,822 | 1,834 | 1,825 | 1,832 |
| Earnings Per Common Shares Outstanding: | ||||
| Basic | $ 1.09 | $ 0.66 | $ 2.07 | $ 1.35 |
| Diluted | $ 1.08 | $ 0.66 | $ 2.07 | $ 1.34 |
Consolidated Balance Sheets
In millions
| June 30, 2025 | June 30, 2024 | |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | $ 32,200 | $ 25,400 |
| Cash and cash segregated | 45,600 | 21,700 |
| Receivables from brokers, dealers, and clearing organizations | 4,300 | 3,200 |
| Receivables from brokerage clients – net | 82,800 | 72,800 |
| Held to maturity securities | 139,700 | 153,200 |
| Bank loans – net | 50,400 | 42,200 |
| Total assets | $ 458,900 | $ 449,700 |
| Liabilities and Stockholders’ Equity | ||
| Bank deposits | $ 233,100 | $ 252,400 |
| Payables to brokers, dealers, and clearing organizations | 18,600 | 5,900 |
| Payables to brokerage clients | 109,400 | 80,000 |
| Other short-term borrowings | 8,500 | 10,000 |
| Federal Home Loan Bank borrowings | 9,000 | 24,400 |
| Long-term debt | 20,200 | 22,400 |
| Total liabilities | $ 409,500 | $ 405,700 |
| Stockholders’ equity | ||
| Total liabilities and stockholders’ equity | $ 458,900 | $ 449,700 |
These tables represent the requested Income Statement and Balance Sheet from the Press Release, maintaining original formatting.
