SCHW Charles Schwab Corporation

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

• Net asset gathering helped total client assets increase 19% year-over-year to $10.10 trillion
• Core net new assets equaled $114.8 billion, bringing full year total to $366.9 billion – up 20% versus 2023
• New brokerage account openings increased 23% year-over-year to 1.1 million for the quarter, pushing total active accounts to 36.5 million
• Managed Investing Solutions net inflows of $15 billion brought the full-year total to a record $55 billion – with converted Retail Ameritrade clients accounting for approximately 35% of net inflows
• Margin balances grew sequentially by 15% to $83.8 billion, up 34% from year-end 2023
• Trading activity increased 11% relative to the prior quarter as client engagement surged following the election
• Retail client satisfaction scores achieved record levels, while Advisor Services promoter scores remained above pre-conversion levels
• Schwab was awarded America’s Best Customer Service 2025 by Newsweek (3)
• Schwab Mobile recognized as the #1 mobile investing app by Corporate Insight (4)

 

 

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

• Net revenues grew on both a year-over-year and sequential basis, up 20% and 10%, respectively
• Sequential net interest margin expanded by 25 basis points to 2.33%
• Client transactional sweep cash balances ended at $418.6 billion, a sequential increase of $34.6 billion
• Bank Supplemental Funding (2) declined sequentially by $14.9 billion to $49.9 billion at December month-end
• Asset management and administration fees achieved a quarterly record of $1.5 billion
• Trading revenue increased 14% versus 4Q23 as a result of higher volumes and changes in trading mix
• GAAP expenses for the quarter declined 7% versus 4Q23
• Fourth quarter acquisition and integration-related costs, amortization of acquired intangibles, and restructuring costs equaled $177 million; exclusive of these items, adjusted total expenses (1) were flat year-over-year
• Capital ratios across the firm continue to strengthen – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) reaching 9.9% and 6.8%, respectively
• Results reflect certain items, including the resolution of previously accrued tax and legal reserves, which contributed $.03 to both GAAP and adjusted diluted earnings per share (1)

(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