The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally.
Charles Schwab reported second quarter results on Tuesday 21 July alongside its summer business update. Adjusted earnings per share rose 42 percent year on year to $1.62 against consensus estimates that ran from $1.53 to $1.58 across providers. Revenue reached a record $7.07 billion, up 21 percent and ahead of the roughly $6.9 billion expected. GAAP diluted EPS was $1.54.
The growth engines all turned over. Core net new assets of $119.8 billion rose 49 percent year on year, and clients opened 1.4 million new brokerage accounts, taking the total to about 48 million. Daily average trades ran at 11.9 million, lifting trading revenue 28 percent to $1.2 billion. Net interest revenue rose 19 percent to $3.4 billion as net interest margin expanded 12 basis points sequentially to 3.00 percent. Bank loans grew 33 percent to $67 billion, and transactional sweep cash increased $24.2 billion in the quarter.
Management raised full-year revenue growth guidance to 17.5 to 18.5 percent, from the 14 to 15 percent range set at the May investor day, and expects net interest margin of 3.00 to 3.10 percent for the year. The call emphasised lending growth, organic asset gathering and AI-led expansion of the platform.
The stock fell about 2.5 percent on the day. Record revenue, record earnings and a raised outlook met a share price that had already assumed most of it, a pattern several of the season’s stronger reporters shared.
