The Charles Schwab Corporation

Record momentum in Q3 (strong earnings + client growth) - Revenue: $7.2B, +17% YoY (record) - Adjusted EPS: $1.69, +29% YoY (record) - Operating leverage: adjusted pre-tax margin 54.8% (+~350 bps YoY) - Client activity: 1.8B client interactions YTD; ~10.7M daily average trades in Q3 - Client acquisition / assets: 1.2M brokerage accounts opened in Q3; $190B core net new assets (NNA) in Q3 (+38% YoY, ~6% annualized organic)

Mix shift & business drivers: banking/lending + managed investing driving differentiation - Managed investing net flows: $24B in Q3 (record, +22% YoY), including Schwab Wealth Advisory +55% - Bank lending: $72B loans (+35% YoY), supported by secured lending demand (margin/Pledged Asset Line) - Bank deposits fees: +40% YoY on improved net yield - Surprising-positive: management says higher AI usage has not reduced cash—if anything, clients hold more cash as they become more active (not “cash sorting away” from Schwab).

AI strategy: revenue/engagement upside plus productivity + controlled risk exposure - AI is already helping: cited evidence of higher client engagement correlating with the rollout period (supporting DAT strength) and AI-driven wealth conversations (tax + estate insights) - Monetization is indirect/behavioral first: more engagement → more investing/trading/wealth activity (not a “standalone AI subscription” model) - AI for clients: Charlie (AI conversational assistant) rolling out to clients; Claude for Financial Advisors via Anthropic for RIAs - AI for execution is controlled: clients/traders can connect their LLMs to Schwab MCP, but Schwab explicitly limits risky actions (e.g., not allowing LLMs to move money), and blocks unsafe “agent login” attempts.