Charles Schwab reports record Q1 revenue, beats estimates

Published 17/04/2025, 13:06
© Reuters.

Investing.com -- Charles Schwab Corporation reported first-quarter earnings that exceeded analyst expectations, driven by strong client asset growth and higher trading volumes.

The company’s stock rose around 2.6% following the announcement.

The financial services giant posted adjusted earnings per share of $1.04, surpassing the analyst estimate of $0.99. Revenue for the quarter reached a record $5.6 billion, up 18% year-over-year (YoY) and above the consensus estimate of $5.46 billion.

Schwab attracted $137.7 billion in core net new assets during the quarter, representing a 44% YoY increase and a 5.5% annualized growth rate. Total (EPA:TTEF) client assets rose 9% YoY to $9.93 trillion.

"Investors turned to Schwab to navigate an increasingly uncertain environment in 1Q25, entrusting us with $138 billion in core net new assets," said President & CEO Rick Wurster. "This 44% year-over-year increase in asset gathering was powered by our unwavering focus on serving the needs of clients across Retail, Advisor Services, and Workplace Financial Services."

The company’s net interest margin expanded sequentially by 20 basis points to 2.53%. Daily average trading volume grew 17% quarter-over-quarter, driven by increased market volatility.

Schwab also reported progress in reducing its bank supplemental funding, which decreased by $11.8 billion during the quarter to $38.1 billion at the end of March.

The company increased its quarterly common dividend by 8% to $0.27 per share and repurchased $1.5 billion worth of common stock during the quarter.

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