Charles Schwab Corp.

Strong Growth in Assets and Client Engagement: In Q1 2025, Schwab experienced a significant increase in core net new assets (NNA), reaching $138 billion, which marks a 44% growth year-over-year. This was driven by the active opening of 1.2 million new accounts and high trading volumes, with daily average trades increasing by 24% to 7.4 million. The firm expects this growth trend to continue, especially as clients seek to capitalize on market volatility.

Robust Financial Performance: Schwab reported record total revenue of $5.6 billion for Q1 2025, reflecting an 18% increase year-over-year. Adjusted earnings per share surged by 41% compared to the same period last year, reaching $1.04. The company maintains a strong adjusted pretax profit margin of 46.2%, showcasing the effectiveness of its business model and efficient expense management.

Outlook for Interest Rates and Trading Activity: The interest rate environment remains uncertain, with expectations of additional cuts to the Fed's target rate in the latter half of 2025. Despite this, Schwab anticipates net interest margin (NIM) to expand to the 2.55% to 2.65% range for the full year, bolstered by higher cash levels and increased trading volumes, which offset potential earnings impacts from reduced margin lending.