The Charles Schwab Corporation posted second-quarter GAAP net income of $2.1 billion, or $1.08 per share, marking a 60% rise from the year-earlier period as robust asset gathering and diversified revenues powered earnings growth. Excluding $128 million in transaction-related costs, adjusted earnings climbed to $2.2 billion, or $1.14 per share.
CEO Rick Wurster credited Schwab’s scale and operational efficiency for the performance, as second-quarter revenue jumped 25% year-on-year to a record $5.9 billion. “We delivered growth on all fronts,” Wurster said, with over 1 million new brokerage accounts opened and $80.3 billion in core net new assets gathered—up 31% versus 2Q24.
CFO Mike Verdeschi pointed to balance sheet optimization, noting a $10.4 billion reduction in supplemental bank funding, enabled by $412.1 billion in client transactional sweep cash. Schwab also returned $2.8 billion in excess capital during the quarter, including $2.5 billion in preferred equity redemptions and $351 million in share repurchases.
Client assets surged to a record $10.76 trillion, up 14% year-on-year, while trading volume jumped 38% to an average of 7.6 million trades daily. The firm saw strong traction in managed investing solutions, with inflows up 37% from a year ago.
Schwab maintained strong profitability metrics, with GAAP pre-tax margins at 47.9% and annualized ROE at 19%. Its direct banking unit earned top marks from J.D. Power for the seventh straight year, underscoring its retail dominance.