Share Name | Share Symbol | Market | Type |
---|---|---|---|
Charles Schwab Corporation | NYSE:SCHW | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.32 | -0.40% | 80.12 | 81.10 | 79.39 | 80.98 | 7,489,431 | 00:20:44 |
December Core Net New Assets Equal $61.4 Billion, 4Q24 Totals $114.8 Billion 4Q Net Revenues Up 20% Year-Over-Year to $5.3 Billion Quarterly GAAP Earnings Per Share of $.94, $1.01 Adjusted (1) – Up 49% Versus 4Q23
The Charles Schwab Corporation reported net income for the fourth quarter totaling $1.8 billion, or $.94 earnings per share. Excluding $177 million of pre-tax transaction-related and restructuring costs, adjusted (1) net income and earnings per share equaled $2.0 billion and $1.01, respectively.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250121070609/en/
Client Driven Growth
$367B 2024 Core
Net New Assets
“In the fourth quarter of 2024, we added $115 billion in core net new assets, bringing asset gathering for the year to $367 billion – a 4.3% annualized growth rate. This 20% annual increase in net new assets reflects our ongoing progress following the Ameritrade integration.” CEO Rick Wurster
Revenue Growth
20% 4Q24 Revenue
Growth vs. 4Q23
“Strong client engagement, increased margin utilization, encouraging client cash trends, and record net inflows into our Managed Investing Solutions helped lift 4Q24 revenue to $5.3 billion, – an increase of 20% year-over-year.” CEO Rick Wurster
Through-
the-Cycle Profitability
46.6% 4Q24 Adjusted
Pre-Tax Profit Margin (1)
“The combination of 20% revenue growth and disciplined expense management resulted in a 4Q24 pre-tax profit margin of 43.3% – 46.6% adjusted (1) – as well as quarterly GAAP and adjusted (1) earnings per share growth of 84% and 49%, respectively.” CFO Mike Verdeschi
Balance Sheet
Management
$14.9B 4Q24 Reduction in Bank Supplemental Funding (2)
“Client transactional sweep cash grew by $35 billion versus 3Q24, including a $25 billion increase in December due to typical year-end seasonality. This build helped us further reduce Bank Supplemental Funding by $14.9 billion to $49.9 billion – down ~50% from peak levels.” CFO Mike Verdeschi
4Q24 Client and Business Highlights
Three Months Ended December 31,
%
Twelve Months Ended December 31,
%
Financial Highlights
2024
2023
Change
2024
2023
Change
Net revenues (in millions)
$
5,329
$
4,459
20
%
$
19,606
$
18,837
4
%
Net income (in millions)
GAAP
$
1,840
$
1,045
76
%
$
5,942
$
5,067
17
%
Adjusted
$
1,974
$
1,367
44
%
$
6,433
$
6,159
4
%
Diluted earnings per common share
GAAP
$
.94
$
.51
84
%
$
2.99
$
2.54
18
%
Adjusted
$
1.01
$
.68
49
%
$
3.25
$
3.13
4
%
Pre-tax profit margin
GAAP
43.3
%
26.8
%
39.2
%
33.9
%
Adjusted
46.6
%
36.0
%
42.5
%
41.5
%
Return on average common stockholders’ equity (annualized)
18
%
12
%
15
%
16
%
Return on tangible common equity (annualized)
36
%
43
%
35
%
54
%
Note:
Items labeled “adjusted” are non-GAAP financial measures; further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-12 of this release. All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding.
4Q24 Financial Commentary
(1)
Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-12 of this release.
(2)
Bank Supplemental Funding includes repurchase agreements at the banks, Schwab Bank Certificates of Deposit (CDs), and Federal Home Loan Bank balances.
(3)
Newsweek America’s Best Customer Service 2025 was given on October 30, 2024, and expires November 1, 2025. The criteria, evaluation, and ranking were determined by Newsweek, partnered with Statista. Visit https://d.newsweek.com/en/file/473784/newsweek-americas-best-customer-service-2025-methodology.pdf for more information. Schwab paid a licensing fee to Newsweek for use of the award and logos.
(4)
Schwab leads in mobile rankings in Corporate Insight’s 2024 Brokerage Experience Benchmarks (https://corporateinsight.com/the-2024-brokerage-experience-benchmarks), which evaluate the individual investor experience offered by 20 leading brokerage websites and mobile apps. This research was independently conducted by Corporate Insight using the Experience Benchmarks’ analytical frameworks that are built on over 25 years of research to provide a clear view of how the nation’s top brokerage websites and mobile apps stack up against one another in terms of functionality, design, navigation, and usability.
Winter Business Update
The company will host its Winter Business Update for institutional investors this morning from 7:30 a.m. - 8:30 a.m. CT, 8:30 a.m. - 9:30 a.m. ET.
Registration for this Update webcast is accessible at https://www.aboutschwab.com/schwabevents.
Forward-Looking Statements
This press release contains forward-looking statements relating to the company’s ongoing progress following the Ameritrade acquisition; asset gathering; client cash trends; competitive position; through-the-cycle profitability; and capital ratios. These forward-looking statements reflect management’s expectations as of the date hereof. Achievement of these expectations and objectives is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations.
Important factors that may cause such differences are described in the company’s most recent reports on Form 10-K and Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company’s website (https://www.aboutschwab.com/financial-reports) and on the Securities and Exchange Commission’s website (https://www.sec.gov). The company makes no commitment to update any forward-looking statements.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 36.5 million active brokerage accounts, 5.4 million workplace plan participant accounts, 2.0 million banking accounts, and $10.10 trillion in client assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com.
THE CHARLES SCHWAB CORPORATION
Consolidated Statements of Income
(In millions, except per share amounts)
(Unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2024
2023
2024
2023
Net Revenues
Interest revenue
$
3,851
$
3,963
$
15,537
$
16,111
Interest expense
(1,320
)
(1,833
)
(6,393
)
(6,684
)
Net interest revenue
2,531
2,130
9,144
9,427
Asset management and administration fees
1,509
1,241
5,716
4,756
Trading revenue
873
767
3,264
3,230
Bank deposit account fees
241
174
729
705
Other
175
147
753
719
Total net revenues
5,329
4,459
19,606
18,837
Expenses Excluding Interest
Compensation and benefits
1,533
1,409
6,043
6,315
Professional services
297
253
1,053
1,058
Occupancy and equipment
276
331
1,060
1,254
Advertising and market development
101
104
397
397
Communications
131
144
591
629
Depreciation and amortization
224
238
916
804
Amortization of acquired intangible assets
130
130
519
534
Regulatory fees and assessments
89
270
398
547
Other
243
386
937
921
Total expenses excluding interest
3,024
3,265
11,914
12,459
Income before taxes on income
2,305
1,194
7,692
6,378
Taxes on income
465
149
1,750
1,311
Net Income
1,840
1,045
5,942
5,067
Preferred stock dividends and other
123
119
464
418
Net Income Available to Common Stockholders
$
1,717
$
926
$
5,478
$
4,649
Weighted-Average Common Shares Outstanding:
Basic
1,831
1,823
1,828
1,824
Diluted
1,836
1,828
1,834
1,831
Earnings Per Common Shares Outstanding (1):
Basic
$
.94
$
.51
$
3.00
$
2.55
Diluted
$
.94
$
.51
$
2.99
$
2.54
(1)
The Company has voting and nonvoting common stock outstanding. As the participation rights, including dividend and liquidation rights, are identical between the voting and nonvoting stock classes, basic and diluted earnings per share are the same for each class.
THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)
Q4-24 % change
2024
2023
vs.
vs.
Fourth
Third
Second
First
Fourth
(In millions, except per share amounts and as noted)
Q4-23
Q3-24
Quarter
Quarter
Quarter
Quarter
Quarter
Net Revenues
Net interest revenue
19
%
14
%
$
2,531
$
2,222
$
2,158
$
2,233
$
2,130
Asset management and administration fees
22
%
2
%
1,509
1,476
1,383
1,348
1,241
Trading revenue
14
%
10
%
873
797
777
817
767
Bank deposit account fees
39
%
59
%
241
152
153
183
174
Other
19
%
(13
)%
175
200
219
159
147
Total net revenues
20
%
10
%
5,329
4,847
4,690
4,740
4,459
Expenses Excluding Interest
Compensation and benefits (1)
9
%
1
%
1,533
1,522
1,450
1,538
1,409
Professional services
17
%
16
%
297
256
259
241
253
Occupancy and equipment
(17
)%
2
%
276
271
248
265
331
Advertising and market development
(3
)%
—
101
101
107
88
104
Communications
(9
)%
(11
)%
131
147
172
141
144
Depreciation and amortization
(6
)%
(3
)%
224
231
233
228
238
Amortization of acquired intangible assets
—
—
130
130
129
130
130
Regulatory fees and assessments
(67
)%
1
%
89
88
96
125
270
Other (2)
(37
)%
(6
)%
243
259
249
186
386
Total expenses excluding interest
(7
)%
1
%
3,024
3,005
2,943
2,942
3,265
Income before taxes on income
93
%
25
%
2,305
1,842
1,747
1,798
1,194
Taxes on income
N/M
7
%
465
434
415
436
149
Net Income
76
%
31
%
1,840
1,408
1,332
1,362
1,045
Preferred stock dividends and other
3
%
13
%
123
109
121
111
119
Net Income Available to Common Stockholders
85
%
32
%
$
1,717
$
1,299
$
1,211
$
1,251
$
926
Earnings per common share (3):
Basic
84
%
32
%
$
.94
$
.71
$
.66
$
.69
$
.51
Diluted
84
%
32
%
$
.94
$
.71
$
.66
$
.68
$
.51
Dividends declared per common share
—
—
$
.25
$
.25
$
.25
$
.25
$
.25
Weighted-average common shares outstanding:
Basic
—
—
1,831
1,829
1,828
1,825
1,823
Diluted
—
—
1,836
1,834
1,834
1,831
1,828
Performance Measures
Pre-tax profit margin
43.3
%
38.0
%
37.2
%
37.9
%
26.8
%
Return on average common stockholders’ equity (annualized) (4)
18
%
14
%
14
%
15
%
12
%
Financial Condition (at quarter end, in billions)
Cash and cash equivalents
(3
)%
21
%
$
42.1
$
34.9
$
25.4
$
31.8
$
43.3
Cash and investments segregated
20
%
13
%
38.2
33.7
21.7
25.9
31.8
Receivables from brokerage clients — net
24
%
15
%
85.4
74.0
72.8
71.2
68.7
Available for sale securities
(23
)%
(8
)%
83.0
90.0
93.6
101.1
107.6
Held to maturity securities
(8
)%
(2
)%
146.5
149.9
153.2
156.4
159.5
Bank loans — net
12
%
4
%
45.2
43.3
42.2
40.8
40.4
Total assets
(3
)%
3
%
479.8
466.1
449.7
468.8
493.2
Bank deposits
(11
)%
5
%
259.1
246.5
252.4
269.5
290.0
Payables to brokers, dealers, and clearing organizations (5)
102
%
(19
)%
13.3
16.4
5.9
6.7
6.6
Payables to brokerage clients
20
%
14
%
101.6
89.2
80.0
84.0
84.8
Other short-term borrowings
(9
)%
(43
)%
6.0
10.6
10.0
8.4
6.6
Federal Home Loan Bank borrowings
(37
)%
(26
)%
16.7
22.6
24.4
24.0
26.4
Long-term debt
(14
)%
—
22.4
22.4
22.4
22.9
26.1
Stockholders’ equity
18
%
3
%
48.4
47.2
44.0
42.4
41.0
Other
Full-time equivalent employees (at quarter end, in thousands)
(3
)%
—
32.1
32.1
32.3
32.6
33.0
Capital expenditures — purchases of equipment, office facilities, and property,
net (in millions)
30
%
91
%
$
258
$
135
$
92
$
122
$
199
Expenses excluding interest as a percentage of average client assets (annualized)
0.12
%
0.12
%
0.13
%
0.14
%
0.16
%
Clients’ Daily Average Trades (DATs) (in thousands)
22
%
11
%
6,312
5,697
5,486
5,958
5,192
Number of Trading Days
1
%
(1
)%
63.0
63.5
63.0
61.0
62.5
Revenue Per Trade (6)
(7
)%
—
$
2.20
$
2.20
$
2.25
$
2.25
$
2.36
(1)
Fourth quarter of 2023 includes $16 million in restructuring costs.
(2)
Fourth quarter of 2023 includes $181 million in restructuring costs.
(3)
The Company has voting and nonvoting common stock outstanding. As the participation rights, including dividend and liquidation rights, are identical between the voting and nonvoting stock classes, basic and diluted earnings per share are the same for each class.
(4)
Return on average common stockholders’ equity is calculated using net income available to common stockholders divided by average common stockholders’ equity.
(5)
Payables to brokers, dealers, and clearing organizations include securities loaned.
(6)
Revenue per trade is calculated as trading revenue divided by the product of DATs multiplied by the number of trading days.
N/M Not meaningful. Percentage changes greater than 200% are presented as not meaningful.THE CHARLES SCHWAB CORPORATION
Net Interest Revenue Information
(In millions, except ratios or as noted)
(Unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2024
2023
2024
2023
Average
Balance
Interest
Revenue/
Expense
Average
Yield/
Rate
Average
Balance
Interest
Revenue/
Expense
Average
Yield/
Rate
Average
Balance
Interest
Revenue/
Expense
Average
Yield/
Rate
Average
Balance
Interest
Revenue/
Expense
Average
Yield/
Rate
Interest-earning assets
Cash and cash equivalents
$
28,332
$
334
4.61
%
$
35,312
$
475
5.27
%
$
29,676
$
1,539
5.10
%
$
37,846
$
1,894
4.94
%
Cash and investments segregated
36,510
429
4.60
%
23,830
314
5.16
%
28,450
1,443
4.99
%
28,259
1,355
4.73
%
Receivables from brokerage clients
77,524
1,378
6.95
%
62,602
1,260
7.88
%
70,811
5,420
7.53
%
61,914
4,793
7.64
%
Available for sale securities (1)
92,216
486
2.09
%
118,831
647
2.16
%
101,659
2,166
2.12
%
137,178
2,987
2.17
%
Held to maturity securities (1)
147,608
638
1.72
%
160,378
700
1.74
%
152,566
2,636
1.72
%
165,634
2,872
1.73
%
Bank loans
44,248
483
4.36
%
40,386
437
4.31
%
42,255
1,867
4.42
%
40,234
1,664
4.14
%
Total interest-earning assets
426,438
3,748
3.46
%
441,339
3,833
3.43
%
425,417
15,071
3.51
%
471,065
15,565
3.28
%
Securities lending revenue
72
78
330
419
Other interest revenue
31
52
136
127
Total interest-earning assets
$
426,438
$
3,851
3.56
%
$
441,339
$
3,963
3.54
%
$
425,417
$
15,537
3.61
%
$
471,065
$
16,111
3.39
%
Funding sources
Bank deposits
$
244,176
$
550
0.90
%
$
280,380
$
971
1.37
%
$
256,212
$
3,152
1.23
%
$
306,505
$
3,363
1.10
%
Payables to brokers, dealers, and
clearing organizations (2)
13,045
142
4.28
%
5,386
51
3.72
%
8,522
372
4.30
%
4,477
147
3.23
%
Payables to brokerage clients
82,279
43
0.21
%
61,781
66
0.43
%
72,776
272
0.37
%
66,842
271
0.41
%
Other short-term borrowings
9,094
122
5.33
%
6,724
95
5.63
%
9,146
504
5.51
%
7,144
375
5.25
%
Federal Home Loan Bank borrowings
19,392
257
5.18
%
31,630
423
5.28
%
23,102
1,245
5.32
%
34,821
1,810
5.14
%
Long-term debt
22,438
206
3.67
%
25,457
226
3.54
%
23,083
846
3.66
%
22,636
715
3.16
%
Total interest-bearing liabilities (2)
390,424
1,320
1.34
%
411,358
1,832
1.77
%
392,841
6,391
1.62
%
442,425
6,681
1.51
%
Non-interest-bearing funding sources (2)
36,014
29,981
32,576
28,640
Other interest expense
—
1
2
3
Total funding sources
$
426,438
$
1,320
1.23
%
$
441,339
$
1,833
1.65
%
$
425,417
$
6,393
1.49
%
$
471,065
$
6,684
1.41
%
Net interest revenue
$
2,531
2.33
%
$
2,130
1.89
%
$
9,144
2.12
%
$
9,427
1.98
%
(1)
Amounts have been calculated based on amortized cost.
(2)
Beginning in 2024, payables to brokers, dealers, and clearing organizations is presented separately from non-interest-bearing funding sources and included in total interest-bearing liabilities. This line item includes securities loaned and related interest expense. Prior period amounts have been reclassified to reflect this change.
THE CHARLES SCHWAB CORPORATION
Asset Management and Administration Fees Information
(In millions, except ratios or as noted)
(Unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2024
2023
2024
2023
Average
Client
Assets
Revenue
Average
Fee
Average
Client
Assets
Revenue
Average
Fee
Average
Client
Assets
Revenue
Average
Fee
Average
Client
Assets
Revenue
Average
Fee
Schwab money market funds
$
580,957
$
389
0.27
%
$
461,091
$
299
0.26
%
$
539,113
$
1,461
0.27
%
$
391,864
$
1,034
0.26
%
Schwab equity and bond funds, exchange-traded funds (ETFs), and collective trust funds (CTFs)
647,170
125
0.08
%
486,340
98
0.08
%
588,999
462
0.08
%
471,832
382
0.08
%
Mutual Fund OneSource® and other no-transaction-
fee funds
363,024
231
0.25
%
289,841
188
0.26
%
342,615
878
0.26
%
249,131
657
0.26
%
Other third-party mutual funds and ETFs
629,913
106
0.07
%
572,027
97
0.07
%
611,999
420
0.07
%
640,689
490
0.08
%
Total mutual funds, ETFs, and CTFs (1)
$
2,221,064
$
851
0.15
%
$
1,809,299
$
682
0.15
%
$
2,082,726
$
3,221
0.15
%
$
1,753,516
$
2,563
0.15
%
Managed investing solutions (1)
Fee-based
$
582,464
$
557
0.38
%
$
465,266
$
475
0.41
%
$
542,253
$
2,129
0.39
%
$
458,114
$
1,868
0.41
%
Non-fee-based
115,712
—
—
98,679
—
—
111,571
—
—
96,633
—
—
Total managed investing solutions
$
698,176
$
557
0.32
%
$
563,945
$
475
0.33
%
$
653,824
$
2,129
0.33
%
$
554,747
$
1,868
0.34
%
Other balance-based fees (2)
827,930
76
0.04
%
664,774
65
0.04
%
776,715
286
0.04
%
608,170
254
0.04
%
Other (3)
25
19
80
71
Total asset management and administration fees
$
1,509
$
1,241
$
5,716
$
4,756
(1)
Managed investing solutions, formerly referred to as “Advice solutions”, includes managed portfolios, specialized strategies, and customized investment advice such as Schwab Wealth Advisory™, Schwab Managed Portfolios™, Managed Account Select®, Schwab Advisor Network®, Windhaven Strategies®, ThomasPartners® Strategies, Wasmer Schroeder™ Strategies, Schwab Index Advantage advised retirement plan balances, Schwab Intelligent Portfolios®, Institutional Intelligent Portfolios®, Schwab Intelligent Portfolios Premium®, AdvisorDirect®, Essential Portfolios, Selective Portfolios, and Personalized Portfolios; as well as legacy non-fee managed investing solutions including Schwab Advisor Source and certain retirement plan balances. Average client assets for managed investing solutions may also include the asset balances contained in the mutual fund and/or ETF categories listed above. For the total end of period view, please see the Monthly Activity Report.
(2)
Includes various asset-related fees, such as trust fees, 401(k) recordkeeping fees, and mutual fund clearing fees and other service fees.
(3)
Includes miscellaneous service and transaction fees relating to mutual funds and ETFs that are not balance-based.
THE CHARLES SCHWAB CORPORATION
Growth in Client Assets and Accounts
(Unaudited)
Q4-24 % Change
2024
2023
vs.
vs.
Fourth
Third
Second
First
Fourth
(In billions, at quarter end, except as noted)
Q4-23
Q3-24
Quarter
Quarter
Quarter
Quarter
Quarter
Assets in client accounts
Schwab One®, certain cash equivalents, and bank deposits
(3
)%
7
%
$
358.8
$
334.1
$
330.7
$
348.2
$
368.3
Bank deposit account balances
(10
)%
4
%
87.5
84.0
84.5
90.2
97.4
Proprietary mutual funds (Schwab Funds® and Laudus Funds®) and CTFs
Money market funds (1)
25
%
6
%
596.5
562.1
533.6
515.7
476.4
Equity and bond funds and CTFs (2)
24
%
1
%
232.2
228.9
214.4
206.0
186.7
Total proprietary mutual funds and CTFs
25
%
5
%
828.7
791.0
748.0
721.7
663.1
Mutual Fund Marketplace® (3)
Mutual Fund OneSource® and other no-transaction-fee funds
14
%
(3
)%
347.8
358.0
344.8
329.2
306.2
Mutual fund clearing services
20
%
—
280.7
280.8
264.7
248.1
233.4
Other third-party mutual funds
8
%
(2
)%
1,211.1
1,236.5
1,177.5
1,182.9
1,126.5
Total Mutual Fund Marketplace
10
%
(2
)%
1,839.6
1,875.3
1,787.0
1,760.2
1,666.1
Total mutual fund assets
15
%
—
2,668.3
2,666.3
2,535.0
2,481.9
2,329.2
Exchange-traded funds
Proprietary ETFs (2)
24
%
2
%
395.0
385.9
349.6
342.9
319.4
Other third-party ETFs
28
%
3
%
1,940.6
1,888.2
1,738.6
1,676.6
1,521.7
Total ETF assets
27
%
3
%
2,335.6
2,274.1
2,088.2
2,019.5
1,841.1
Equity and other securities
26
%
3
%
3,972.6
3,839.6
3,648.8
3,467.7
3,163.5
Fixed income securities
(2
)%
(4
)%
762.3
795.4
792.0
779.0
779.7
Margin loans outstanding
34
%
15
%
(83.8
)
(73.0
)
(71.7
)
(68.1
)
(62.6
)
Total client assets
19
%
2
%
$
10,101.3
$
9,920.5
$
9,407.5
$
9,118.4
$
8,516.6
Client assets by business (4)
Investor Services (5)
20
%
3
%
$
5,721.6
$
5,576.7
$
5,317.5
$
5,108.9
$
4,759.2
Advisor Services (6)
17
%
1
%
4,379.7
4,343.8
4,090.0
4,009.5
3,757.4
Total client assets
19
%
2
%
$
10,101.3
$
9,920.5
$
9,407.5
$
9,118.4
$
8,516.6
Net growth in assets in client accounts (for the quarter ended)
Net new assets by business (4)
Investor Services (5)
64
%
24
%
$
46.2
$
37.2
$
40.1
$
37.6
$
28.1
Advisor Services (6)
63
%
16
%
62.2
53.6
34.1
50.6
38.2
Total net new assets
63
%
19
%
$
108.4
$
90.8
$
74.2
$
88.2
$
66.3
Net market gains
72.4
422.2
214.9
513.6
625.8
Net growth
$
180.8
$
513.0
$
289.1
$
601.8
$
692.1
New brokerage accounts (in thousands, for the quarter ended)
23
%
15
%
1,119
972
985
1,094
910
Client accounts (in thousands)
Active brokerage accounts
5
%
1
%
36,456
35,982
35,612
35,301
34,838
Banking accounts
9
%
2
%
1,998
1,954
1,931
1,885
1,838
Workplace Plan Participant Accounts (7)
3
%
—
5,399
5,388
5,363
5,277
5,221
(1)
Total client assets in purchased money market funds are located at: https://www.aboutschwab.com/investor-relations.
(2)
Includes balances held on and off the Schwab platform. As of December 31, 2024, off-platform equity and bond funds, CTFs, and ETFs were $35.0 billion, $3.9 billion, and $139.0 billion, respectively.
(3)
Excludes all proprietary mutual funds and ETFs.
(4)
In the fourth quarter of 2024, Retirement Business Services moved from Advisor Services to Investor Services. Prior periods have been recast.
(5)
Fourth quarter of 2024 includes net outflows of $5.5 billion from off-platform Schwab Bank Retail CDs and an outflow of $0.6 billion from a large international relationship. Third quarter of 2024 includes net outflows of $4.4 billion from off-platform Schwab Bank Retail CDs and an outflow of $0.1 billion from a large international relationship. Second quarter of 2024 includes net inflows of $2.7 billion from off-platform Schwab Bank Retail CDs and an inflow of $10.3 billion from a mutual fund clearing services client. First quarter of 2024 includes net outflows of $7.4 billion from off-platform Schwab Bank Retail CDs. Fourth quarter of 2023 includes net inflows of $2.4 billion from off-platform Schwab Bank Retail CDs and outflows of $5.8 billion from a large international relationship.
(6)
Fourth quarter of 2024 includes an outflow of $0.3 billion from a large international relationship. Fourth quarter of 2023 includes outflows of $6.4 billion from a large international relationship.
(7)
Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business.
The Charles Schwab Corporation Monthly Activity Report For December 2024
2023
2024
Change
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Mo.
Yr.
Market Indices (at month end)
Dow Jones Industrial Average®
37,690
38,150
38,996
39,807
37,816
38,686
39,119
40,843
41,563
42,330
41,763
44,911
42,544
(5
)%
13
%
Nasdaq Composite®
15,011
15,164
16,092
16,379
15,658
16,735
17,733
17,599
17,714
18,189
18,095
19,218
19,311
—
29
%
Standard & Poor’s® 500
4,770
4,846
5,096
5,254
5,036
5,278
5,460
5,522
5,648
5,762
5,705
6,032
5,882
(2
)%
23
%
Client Assets (in billions of dollars)
Beginning Client Assets
8,180.6
8,516.6
8,558.1
8,879.5
9,118.4
8,847.5
9,206.3
9,407.5
9,572.1
9,737.7
9,920.5
9,852.0
10,305.4
Net New Assets (1)
42.1
14.8
31.7
41.7
10.0
31.0
33.2
29.0
31.5
30.3
22.7
25.5
60.2
136
%
43
%
Net Market Gains (Losses)
293.9
26.7
289.7
197.2
(280.9
)
327.8
168.0
135.6
134.1
152.5
(91.2
)
427.9
(264.3
)
Total Client Assets (at month end)
8,516.6
8,558.1
8,879.5
9,118.4
8,847.5
9,206.3
9,407.5
9,572.1
9,737.7
9,920.5
9,852.0
10,305.4
10,101.3
(2
)%
19
%
Core Net New Assets (1,2)
43.1
17.2
33.4
45.0
1.0
31.1
29.1
29.0
32.8
33.5
24.6
28.8
61.4
113
%
42
%
Receiving Ongoing Advisory Services (at month end)
Investor Services
581.4
584.1
601.8
618.5
602.2
624.0
632.9
649.1
663.7
675.1
665.6
688.9
682.0
(1
)%
17
%
Advisor Services
3,757.4
3,780.4
3,902.5
4,009.5
3,893.9
4,027.3
4,090.0
4,185.4
4,268.1
4,343.8
4,303.3
4,489.2
4,379.7
(2
)%
17
%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts
34,838
35,017
35,127
35,301
35,426
35,524
35,612
35,743
35,859
35,982
36,073
36,222
36,456
1
%
5
%
Banking Accounts
1,838
1,856
1,871
1,885
1,901
1,916
1,931
1,937
1,940
1,954
1,967
1,980
1,998
1
%
9
%
Workplace Plan Participant Accounts (3)
5,221
5,226
5,268
5,277
5,282
5,345
5,363
5,382
5,373
5,388
5,407
5,393
5,399
—
3
%
Client Activity
New Brokerage Accounts (in thousands)
340
366
345
383
361
314
310
327
324
321
331
357
431
21
%
27
%
Client Cash as a Percentage of Client Assets (4)
10.5
%
10.5
%
10.2
%
10.0
%
10.2
%
9.9
%
9.7
%
9.6
%
9.5
%
9.5
%
9.8
%
9.5
%
10.1
%
60 bp
(40) bp
Derivative Trades as a Percentage of Total Trades
21.8
%
21.8
%
22.2
%
21.9
%
22.1
%
21.9
%
21.3
%
21.2
%
20.8
%
21.5
%
21.4
%
19.7
%
18.6
%
(110) bp
(320) bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (5)
446,305
443,694
434,822
431,456
423,532
415,950
417,150
417,379
420,191
420,203
422,327
425,789
431,177
1
%
(3
)%
Average Margin Balances
62,309
61,368
63,600
66,425
68,827
67,614
69,730
73,206
73,326
72,755
74,105
76,932
81,507
6
%
31
%
Average Bank Deposit Account Balances (6)
95,518
95,553
92,075
90,774
88,819
86,844
85,195
83,979
82,806
82,336
83,261
84,385
85,384
1
%
(11
)%
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (7,8) (in millions of dollars)
Equities
7,903
8,182
7,624
10,379
3,472
5,734
3,379
10,908
5,609
5,217
7,176
13,226
14,805
Hybrid
(1,596
)
(501
)
(1,330
)
(439
)
(703
)
(558
)
(843
)
(1,155
)
(1,377
)
(432
)
(1,397
)
(329
)
124
Bonds
6,104
7,510
9,883
7,561
5,949
5,854
6,346
8,651
10,919
11,015
10,442
7,473
10,969
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (7)
(7,406
)
(966
)
(1,348
)
(1,607
)
(4,818
)
(5,544
)
(4,254
)
(4,679
)
(4,003
)
(1,261
)
(4,905
)
(4,492
)
(4,331
)
Exchange-Traded Funds (8)
19,817
16,157
17,525
19,108
13,536
16,574
13,136
23,083
19,154
17,061
21,126
24,862
30,229
Money Market Funds
7,745
11,717
10,129
9,085
(2,357
)
9,790
3,858
9,110
8,048
9,672
11,032
9,172
8,956
Note: Certain supplemental details related to the information above can be found at: https://www.aboutschwab.com/financial-reports.
(1)
Unless otherwise noted, differences between net new assets and core net new assets are net flows from off-platform Schwab Bank Retail CDs. Additionally, 2024 includes outflows from a large international relationship of $0.1 billion in August, $0.3 billion in October, $0.6 billion in November, and an inflow of $10.3 billion from a mutual fund clearing services client in April. 2023 also includes an outflow from a large international relationship of $0.6 billion in December.
(2)
Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $10 billion) relating to a specific client, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods.
(3)
Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business.
(4)
Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets; client cash excludes brokered CDs issued by Charles Schwab Bank.
(5)
Represents average total interest-earning assets on the Company’s balance sheet.
(6)
Represents average clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions.
(7)
Represents the principal value of client mutual fund transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to Investment Managers. Excludes money market fund transactions.
(8)
Represents the principal value of client ETF transactions handled by Schwab, including transactions in proprietary ETFs.
THE CHARLES SCHWAB CORPORATION Non-GAAP Financial Measures (In millions, except ratios and per share amounts) (Unaudited)
In addition to disclosing financial results in accordance with generally accepted accounting principles in the U.S. (GAAP), Schwab’s fourth quarter earnings release contains references to the non-GAAP financial measures described below. We believe these non-GAAP financial measures provide useful supplemental information about the financial performance of the Company, and facilitate meaningful comparison of Schwab’s results in the current period to both historic and future results. These non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may not be comparable to non-GAAP financial measures presented by other companies.
Schwab’s use of non-GAAP measures is reflective of certain adjustments made to GAAP financial measures as described below. Beginning in the third quarter of 2023, these adjustments also include restructuring costs, which the Company began incurring in connection with its previously announced plans to streamline its operations to prepare for post-integration of Ameritrade. See Part I – Item 1 – Note 10 of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 for additional information.
Non-GAAP Adjustment or Measure
Definition
Usefulness to Investors and Uses by Management
Acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs
Schwab adjusts certain GAAP financial measures to exclude the impact of acquisition and integration-related costs incurred as a result of the Company’s acquisitions, amortization of acquired intangible assets, restructuring costs, and, where applicable, the income tax effect of these expenses.
Adjustments made to exclude amortization of acquired intangible assets are reflective of all acquired intangible assets, which were recorded as part of purchase accounting. These acquired intangible assets contribute to the Company’s revenue generation. Amortization of acquired intangible assets will continue in future periods over their remaining useful lives.
We exclude acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs for the purpose of calculating certain non-GAAP measures because we believe doing so provides additional transparency of Schwab’s ongoing operations, and is useful in both evaluating the operating performance of the business and facilitating comparison of results with prior and future periods.
Costs related to acquisition and integration or restructuring fluctuate based on the timing of acquisitions, integration and restructuring activities, thereby limiting comparability of results among periods, and are not representative of the costs of running the Company’s ongoing business. Amortization of acquired intangible assets is excluded because management does not believe it is indicative of the Company’s underlying operating performance.
Return on tangible common equity
Return on tangible common equity represents annualized adjusted net income available to common stockholders as a percentage of average tangible common equity. Tangible common equity represents common equity less goodwill, acquired intangible assets — net, and related deferred tax liabilities.
Acquisitions typically result in the recognition of significant amounts of goodwill and acquired intangible assets. We believe return on tangible common equity may be useful to investors as a supplemental measure to facilitate assessing capital efficiency and returns relative to the composition of Schwab’s balance sheet.
Adjusted Tier 1 Leverage Ratio
Adjusted Tier 1 Leverage Ratio represents the Tier 1 Leverage Ratio as prescribed by bank regulatory guidance for the consolidated company and for Charles Schwab Bank, SSB (CSB), adjusted to reflect the inclusion of accumulated other comprehensive income (AOCI) in the ratio.
Inclusion of the impacts of AOCI in the Company’s Tier 1 Leverage Ratio provides additional information regarding the Company’s current capital position. We believe Adjusted Tier 1 Leverage Ratio may be useful to investors as a supplemental measure of the Company’s capital levels.
The Company also uses adjusted diluted EPS and return on tangible common equity as components of performance criteria for employee bonus and certain executive management incentive compensation arrangements. The Compensation Committee of CSC’s Board of Directors maintains discretion in evaluating performance against these criteria. Additionally, the Company uses adjusted Tier 1 Leverage Ratio in managing capital, including its use of the measure as its long-term operating objective.
The tables below present reconciliations of GAAP measures to non-GAAP measures:
Three Months Ended December 31,
Twelve Months Ended December 31,
2024
2023
2024
2023
Total Expenses Excluding Interest
Net
Income
Total Expenses Excluding Interest
Net
Income
Total Expenses Excluding Interest
Net
Income
Total Expenses Excluding Interest
Net
Income
Total expenses excluding interest (GAAP), Net income (GAAP)
$
3,024
$
1,840
$
3,265
$
1,045
$
11,914
$
5,942
$
12,459
$
5,067
Acquisition and integration-related costs (1)
(20
)
20
(67
)
67
(117
)
117
(401
)
401
Amortization of acquired intangible assets
(130
)
130
(130
)
130
(519
)
519
(534
)
534
Restructuring costs (2)
(27
)
27
(216
)
216
(9
)
9
(495
)
495
Income tax effects (3)
N/A
(43
)
N/A
(91
)
N/A
(154
)
N/A
(338
)
Adjusted total expenses (non-GAAP), Adjusted net income (non-GAAP)
$
2,847
$
1,974
$
2,852
$
1,367
$
11,269
$
6,433
$
11,029
$
6,159
(1)
Acquisition and integration-related costs for the three and twelve months ended December 31, 2024 primarily consist of $10 million and $54 million of compensation and benefits, $4 million and $36 million of professional services, and $6 million and $19 million of depreciation and amortization. Acquisition and integration-related costs for the three and twelve months ended December 31, 2023 primarily consist of $29 million and $187 million of compensation and benefits, $24 million and $135 million of professional services, $7 million and $28 million of occupancy and equipment, and $1 million and $27 million of other expense.
(2)
Restructuring costs for the three months ended December 31, 2024 primarily consist of $24 million of other expense. Restructuring costs for the twelve months ended December 31, 2024 reflect a change in estimate of $34 million in compensation and benefits, offset by $5 million of occupancy and equipment and $37 million of other expense. Restructuring costs for the three and twelve months ended December 31, 2023 primarily consist of $16 million and $292 million of compensation and benefits, $15 million and $17 million of occupancy and equipment, and $181 million of other expense for each period.
(3)
The income tax effects of the non-GAAP adjustments are determined using an effective tax rate reflecting the exclusion of non-deductible acquisition costs and are used to present the acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs on an after-tax basis.
N/A Not applicable.
Three Months Ended December 31,
Twelve Months Ended December 31,
2024
2023
2024
2023
Amount
% of Total Net Revenues
Amount
% of Total Net Revenues
Amount
% of Total Net Revenues
Amount
% of Total Net Revenues
Income before taxes on income (GAAP), Pre-tax profit margin (GAAP)
$
2,305
43.3
%
$
1,194
26.8
%
$
7,692
39.2
%
$
6,378
33.9
%
Acquisition and integration-related costs
20
0.4
%
67
1.5
%
117
0.6
%
401
2.1
%
Amortization of acquired intangible assets
130
2.4
%
130
2.9
%
519
2.7
%
534
2.9
%
Restructuring costs
27
0.5
%
216
4.8
%
9
—
495
2.6
%
Adjusted income before taxes on income (non-GAAP), Adjusted pre-tax profit margin (non-GAAP)
$
2,482
46.6
%
$
1,607
36.0
%
$
8,337
42.5
%
$
7,808
41.5
%
Three Months Ended December 31,
Twelve Months Ended December 31,
2024
2023
2024
2023
Amount
Diluted
EPS
Amount
Diluted
EPS
Amount
Diluted
EPS
Amount
Diluted
EPS
Net income available to common stockholders (GAAP), Earnings per common share — diluted (GAAP)
$
1,717
$
.94
$
926
$
.51
$
5,478
$
2.99
$
4,649
$
2.54
Acquisition and integration-related costs
20
.01
67
.04
117
.06
401
.22
Amortization of acquired intangible assets
130
.07
130
.07
519
.28
534
.29
Restructuring costs
27
.01
216
.12
9
—
495
.27
Income tax effects
(43
)
(.02
)
(91
)
(.06
)
(154
)
(.08
)
(338
)
(.19
)
Adjusted net income available to common stockholders (non-GAAP), Adjusted diluted EPS (non-GAAP)
$
1,851
$
1.01
$
1,248
$
.68
$
5,969
$
3.25
$
5,741
$
3.13
Three Months Ended December 31,
Twelve Months Ended December 31,
2024
2023
2024
2023
Return on average common stockholders’ equity (GAAP)
18
%
12
%
15
%
16
%
Average common stockholders’ equity
$
38,604
$
30,179
$
35,475
$
29,334
Less: Average goodwill
(11,951
)
(11,951
)
(11,951
)
(11,951
)
Less: Average acquired intangible assets — net
(7,808
)
(8,325
)
(8,002
)
(8,524
)
Plus: Average deferred tax liabilities related to goodwill and acquired intangible assets — net
1,723
1,790
1,741
1,805
Average tangible common equity
$
20,568
$
11,693
$
17,263
$
10,664
Adjusted net income available to common stockholders (1)
$
1,851
$
1,248
$
5,969
$
5,741
Return on tangible common equity (non-GAAP)
36
%
43
%
35
%
54
%
(1)
See table above for the reconciliation of net income available to common stockholders to adjusted net income available to common stockholders (non-GAAP).
(Preliminary)
December 31, 2024
CSC
CSB
Tier 1 Leverage Ratio (GAAP)
9.9
%
11.6
%
Tier 1 Capital
$
45,186
$
32,584
Plus: AOCI adjustment
(14,839
)
(12,938
)
Adjusted Tier 1 Capital
30,347
19,646
Average assets with regulatory adjustments
458,119
280,701
Plus: AOCI adjustment
(14,831
)
(13,037
)
Adjusted average assets with regulatory adjustments
$
443,288
$
267,664
Adjusted Tier 1 Leverage Ratio (non-GAAP)
6.8
%
7.3
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20250121070609/en/
MEDIA Mayura Hooper, 415-667-1525 public.relations@schwab.com INVESTORS/ANALYSTS Jeff Edwards, 817-854-6177 investor.relations@schwab.com
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