Charles Schwab Corporation (NYSE:SCHW) stock rose Wednesday after it reported fourth-quarter fiscal 2025 results.
The company reported adjusted earnings per share of $1.39, up 38% year over year (Y/Y), in line with consensus.
The company reported quarterly revenue of $6.336 billion, up 19% Y/Y, narrowly missing the Street's estimate of $6.369 billion.
Details
Trading revenue increased 22% Y/Y to $1.07 billion due to continued strong engagement.
Meanwhile, net interest revenue gained 25% Y/Y to $3.17 billion in the quarter, with the net interest margin expanding by 57 basis points Y/Y to 2.90%.
Asset management and administration fees increased by 15% Y/Y to $1.7 billion, led by organic growth, improved equity markets, and higher utilization of the wealth and asset management solutions.
The average daily trading volume reached 8.3 million, which is an increase of 31% compared to the fourth quarter of 2024.
Margin loan balances reached $112.3 billion at the end of the quarter, reflecting a 34% increase compared to year-end 2024.
Other Key Figures
In the quarter under review, total client assets increased 18% Y/Y to a record $11.9 trillion.
Record fourth-quarter core net new assets of $163.9 billion bring total 2025 asset gathering to $519.4 billion, up 42% Y/Y.
New brokerage account openings topped 1 million for the fifth straight quarter, lifting active brokerage accounts to 38.5 million and total client accounts to 46.5 million.
The company exited the fourth quarter with cash and cash equivalents worth $46.0 billion.
The bank had $255.7 billion in deposits at the end of the quarter, down 1% Y/Y. During the quarter, the company repurchased 29.2 million shares for $2.7 billion.
Management Commentary
President & CEO Rick Wurster stated, "Clients are conducting more of their financial lives at Schwab, with record engagement across wealth management, trading, and banking. Net inflows into our Managed Investing solutions grew by 36% versus 2024, while bank loan originations achieved another record year."
"Doing more for our growing client base bolsters Schwab's diversified revenue model. In 2025, the combination of our business momentum, strong engagement, and favorable equity markets resulted in record revenue of $23.9 billion – up 22% versus the prior year," added CFO Mike Verdeschi.
SCHW Price Action: Charles Schwab shares were up 0.02% at $101.01 during premarket trading on Wednesday, according to Benzinga Pro data.
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