Schwab Charles — Financial Results
Revenue Surged 22% in 2025, With Net Income Up 49%
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total net revenues | $23.9B | $19.6B | +22% |
| Net income | $8.9B | $5.9B | +49% |
| Diluted EPS | $4.65 | $2.99 | +56% |
| Pre-tax profit margin | 47.9% | 39.2% | +8.7 pts |
After a few years of pressure from rising interest costs, Schwab's financials bounced back sharply in 2025. Revenue grew across every category — interest income, trading, and fees — while expenses grew only 5%, creating significant operating leverage. The pre-tax profit margin of 47.9% is notably strong for a financial services business of this scale.
The Biggest Revenue Driver: Cheaper Borrowing Costs, Not Higher Rates
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Net interest revenue | $11.75B | $9.14B | +28% |
| Net interest margin | 2.74% | 2.12% | +0.62 pts |
| Bank supplemental funding | $5.1B | $49.9B | -90% |
Schwab's core earnings engine — the spread it earns between what it makes on client assets and what it pays on borrowings — improved dramatically. The key reason was not higher rates, but rather the near-elimination of expensive "supplemental" borrowings (things like FHLB loans and brokered CDs) that Schwab had used as a crutch during the 2022–2023 rate shock period. Cutting that expensive funding by 90% (from $49.9 billion to $5.1 billion) was the single biggest contributor to the margin improvement.
Client Assets and New Account Growth Accelerated
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total client assets | $11.90T | $10.10T | +18% |
| Core net new assets | $519.4B | $366.9B | +42% |
| New brokerage accounts | 4.69M | 4.17M | +13% |
| Daily average trades (DATs) | 7.67M | 5.86M | +31% |
Schwab attracted $519 billion in net new client assets in 2025, a 42% jump from the prior year, producing an organic growth rate of 5.1%. Trading activity was also exceptionally high — clients executed an average of 7.7 million trades per day for the full year, rising to 8.3 million in the fourth quarter. This combination of asset gathering and engagement is important because Schwab's revenue scales with both.
Lending Business Expanded Rapidly
Margin loans (money clients borrow against their portfolios) ended 2025 at $112.3 billion, up 34% from a year earlier. Bank loans — including mortgage-style products and lines of credit secured by investment portfolios — rose 28% to $58.0 billion. Both are higher-yielding assets for Schwab, so this growth directly supports net interest revenue even as the Fed was cutting rates.
Schwab Returned $10+ Billion to Shareholders
The company deployed capital aggressively in 2025: it repurchased $7.3 billion of common stock, redeemed $2.5 billion of preferred stock (Series G), and raised the quarterly dividend 8% to $0.27 per share. Shortly after year-end, the board approved a further 19% dividend increase to $0.32 per share. A new $20 billion buyback authorization was also announced in July 2025, with $14.5 billion still remaining at year-end.
Planned Acquisition of Forge Opens Private Markets Access
In November 2025, Schwab announced an agreement to acquire Forge, a marketplace for trading shares in private companies, for approximately $660 million. Stockholder approval was obtained in January 2026, with closing expected in March 2026. This is a relatively small deal for a company Schwab's size, but it signals an intent to give clients access to pre-IPO investments — a fast-growing area of investor interest. Schwab has flagged that Forge-related costs will be on top of its guided 5.5%–6.5% expense growth for 2026.