Charles Schwab Corporation (NYSE:SCHW) reported second-quarter earnings on Friday that surpassed both profit and revenue expectations. Adjusted earnings per share came in at $1.14, beating analyst projections of $1.09, while revenue hit a record $5.85 billion, exceeding the consensus estimate of $5.7 billion.
The financial services firm experienced a 25% rise in revenue year-over-year, fueled by strong growth in client assets and improved interest margins. Core net new assets reached $80.3 billion during the quarter, marking a 31% increase compared to the same period last year. Following the results, Schwab’s shares climbed 1.4%.
Total client assets reached an all-time high of $10.76 trillion, up 14% from the prior year. The company also saw the opening of over 1 million new brokerage accounts in the quarter, an 11% year-over-year increase. Client transactional sweep cash balances grew by $4.3 billion sequentially, closing at $412.1 billion.
“Schwab delivered growth on all fronts during the second quarter,” said President and CEO Rick Wurster. “The firm’s diversified revenue model, coupled with our best-in-class scale and efficiency, produced quarterly records for both revenue and earnings per share.”
Net interest margin increased by 12 basis points sequentially to 2.65%, mainly driven by a reduction in higher-cost liabilities and a rebound in securities lending. Schwab also reduced its Bank Supplemental Funding by $10.4 billion, ending the quarter at $27.7 billion.
During the quarter, the company returned around $2.8 billion in excess capital to shareholders, which included redeeming $2.5 billion of preferred equity and repurchasing $351 million of common shares.
Daily average trading volume remained strong at 7.6 million, a 38% rise compared to Q2 2024, while asset management and administration fees increased 14% year-over-year to $1.6 billion.
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