Charles Schwab Corporation (the) · NYSE:SCHW

Charles Schwab Corporation (the) — Q3 2026 Earnings Presentation

41 slides from Charles Schwab Corporation (the)'s earnings presentation, Oct 15, 2026

  1. Slide 1: Fall Business Update

    Fall Business Update October 15, 2026

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements that refer to expectations, projections or other ch

  3. Slide 3: Presenters: Rick Wurster and Michael Verdeschi

    Rick Wurster President and Chief Executive Officer Michael Verdeschi Managing Director, Chief Financial Officer Charles Schwab Corporation 3

  4. Slide 4: Key Takeaways

    Key Takeaways Our “Through Clients’ Eyes” strategy continues to 1 drive strong momentum, delivering record 3Q results Schwab is leading today Schwab’s unmatched value proposition uniquely & our 2 positions us at the center of the investing ecosystem differentiated platform keeps With a clear strateg

  5. Slide 5: Our strategy continues to drive record results and growth across all fronts

    3Q26 vs. 3Q25 Client $190B +38% 1.2M +9% Our “Through Core Net New Assets New Brokerage Accounts Clients’ Eyes” strategy continues to drive Solutions $24B +22% $72B +35% record results & Managed Investing Net Flows Bank Lending1 (EOP) growth across all fronts. Financial $7.2B +17% $1.69 +29% Total N

  6. Slide 6: We continue to earn client and third-party recognition

    +5 pts 93% Investor Services Advisor Services Client Promoter Score Easy Score1 3Q26 vs. 3Q25 3Q26 We continue to earn client & third-party recognition. Schwab was recognized by Fortune Schwab was named Best Online as one of Fortune’s 20262 America's Brokers and Trading Platforms for 2026, Most Inno

  7. Slide 7: We remain the trusted platform of choice for investors and RIAs

    LEADERSHIP #1 Total Client #1 RIA Custodial Assets Assets We remain the ENGAGEMENT trusted platform 1.8B #1 of choice for Total Client Interactions1 Daily Average Trades investors & RIAs. PLATFORM FLOWS ~1.8x TOA Ratio 2 ~$3.8T Monthly Money Movement3 Note: Rankings based on publicly traded peer dat

  8. Slide 8: Ongoing innovation further reinforces our differentiated value proposition

    2026 YTD Select Highlights Ongoing Singlepartnership  Claude Stock Futures CBOE UHNW Binary Options  Advisor innovation further  Schwab Crypto New Schwab Crypto Services Coins enhancements reinforces our  24/7 Cryptocurrency Futures Trading Relationship  Relationship Management Assistant Ma

  9. Slide 9: AI is amplifying our platform advantage

    90%+ of U.S. Prefer Human 77% Investors Use AI Today Involvement Alongside AI AI is amplifying our platform Elevating Client Experiences Supercharging Our People & Processes advantage, & Capabilities Relationship Management creating more Portfolio Insights Assistant personalized AI-Powered Developer

  10. Slide 10: Schwab remains uniquely at the center of the investing ecosystem

    As investors Advice, Tax, Trust, consolidate their & Estate financial lives, Schwab remains Powerful Banking Trading Self- directed & uniquely at the Combo of Proprietary Advised Solutions center of the People Digital & 3rd + AI Assets Party Products investing ecosystem. Alternative & Private Invest

  11. Slide 11: Tackling our growth opportunities with a clear strategy

    As we look to the future, we are tackling our growth opportunities head-on with a clear strategy & rapid pace of client-focused innovation. Charles Schwab Corporation 11

  12. Slide 12: Serve a growing number of clients: record core NNA

    QUARTERLY RECORD YTD RECORD 3Q RECORD $190B $450B 1.2M 3Q26 2026 YTD 3Q26 Core NNA Core NNA New Brokerage Accounts Core Net New Assets ($B) 27% Serve a Growing $450 Number of Clients $356 $190 across a diverse spectrum of +61% 1 individual investors & RIAs $138 $95 $46 3Q23 3Q24 3Q25 3Q26 2025 YTD 2

  13. Slide 13: Advisor Services helps RIAs of all sizes grow, compete and succeed

    SERVE A GROWING NUMBER OF CLIENTS Advisor Services helps RIAs of all sizes grow, compete, & succeed. A differentiated, full-service platform Winning new custody relationships with RIAs of all sizes NNA by RIA Size1 Custodians Added to ADVs2 1 Scale & Reputation 1,101 13% Schwab 2 Breadth Beyond Cust

  14. Slide 14: Our Retail business is serving clients across the investor spectrum

    SERVE A GROWING NUMBER OF CLIENTS Our Retail business is serving clients across the investor spectrum. Diverse set of individual investors Built to win across generations. ATTRACT SERVE RETAIN 1 Generations Next-gen to retirees ~70% 80% ~75% NTF Retail HH are Retail Assets Held by Assets Retained in

  15. Slide 15: Deepen Existing Client Relationships

    Advice, Tax, Trust, & Estate Banking Trading Deepen Existing Client Relationships & help them conduct more of their financial lives at Schwab Proprietary Digital & Assets 3 Party rd- Products Alternative & Private Note: x Investments Charles Schwab Corporation 15

  16. Slide 16: Our Opportunity Pathway: Managed Investing and Wealth Advisory

    DEEPEN EXISTING CLIENT RELATIONSHIPS Our Opportunity Pathway Managed Investing Net Flows 22% Schwab Wealth AdvisoryTM ~2% +55% Schwab Share of $24B $37T Advice Market2 $20B $10B Net Flows SWA $7B 3Q26 vs. 3Q25 SAN1 $10B $12B 84 pts Client Promoter Score Adoption WTP Other $3B $2B 3Q26 3Q25 3Q26 Schw

  17. Slide 17: Our Opportunity Pathway: Trading

    DEEPEN EXISTING CLIENT RELATIONSHIPS Our Opportunity Pathway 10.7M 1.2K+ Daily Average Trades Expert Trading Specialists ~7x Trader HH NNA vs. Retail Average ~$21T +7 pts Retail Equity Notional1 Y/Y Trader Client Promoter Score  Binary Options ~2x Ongoing  Extended Hours Options Trading Trader Cli

  18. Slide 18: Enhance Scale and Efficiency

    DRIVE IMPROVE THE KEEP COST TO PRODUCTIVITY CLIENT EXPERIENCE SERVE LOW Simplify & automate work Make Schwab easier to work Leverage our scale to maintain a so our people & technology with through faster, simpler & structural cost advantage while Enhance can support more growth more digital experien

  19. Slide 19: Diversified and durable earnings growth through the cycle

    Our position at the trusted center of the investing ecosystem drives diversified & durable earnings growth through the cycle. Charles Schwab Corporation 19

  20. Slide 20: 3Q26 revenue increased 17% year-over-year to a quarterly record

    3Q26 revenue increased 17% year-over-year to a quarterly record,… 3Q26 vs. 3Q25 $7.1B $7.2B  NIR increased 14%, reflecting $6.5B $0.7B $0.6B higher lending balances & $6.1B $6.3B $0.4B $0.5B growth in long/short $0.4B $1.2B Other $1.2B strategies $1.1B $1.1B $1.0B Trading  AMAF grew 14% driven by

  21. Slide 21: Efficiently supported robust client engagement

    …as we efficiently supported robust client engagement across the Schwab platform. 3Q26 vs. 3Q25  GAAP expenses up 9%, reflecting strong client $3.4B $3.4B engagement & higher $3.3B $3.2B volumes $3.1B GAAP 1  Adjusted expenses rose 9% $3.2B $3.2B $3.2B Adjusted 1 $3.0B $3.0B 3Q25 4Q25 1Q26 2Q26 3Q

  22. Slide 22: Record adjusted earnings per share of $1.69

    Schwab’s diversified model and leading scale combined to deliver record adjusted earnings per share of $1.69. 1 Pre-tax Profit Margin (%) Earnings per Share ($) GAAP GAAP Adjusted1 Adjusted1 54.3% 54.8% 51.3% 52.2% 51.4% $1.69 $1.62 $1.39 $1.43 $1.31 51.9% 52.7% $1.62 49.2% 50.2% 49.2% $1.54 $1.33 $

  23. Slide 23: 3Q26 Balance Sheet Highlights

    3Q26 Balance Sheet Highlights Balance Sheet Principles  Supported Client-Driven Growth 1 – Client margin balances grew to $187.9 billion as of September 30, up 67% from year-end 2025 Support our clients’ evolving needs – Demand for our PAL solution continued, as bank loan balances increased 25% ver

  24. Slide 24: Capital ratios remained strong while supporting growth and capital return

    Our capital ratios remained strong while supporting growth & opportunistic capital return. Capital Management Framework Consolidated Tier 1 Leverage Ratio YTD26 Capital Actions Regulatory T1LR Adjusted T1LR1 Support ongoing business growth January 2026 +19% 9.7% 8.9% common stock dividend increase 7

  25. Slide 25: Well positioned to drive diversified and durable earnings growth

    Serve a Deepen Growing Number Existing Client of Clients Relationships We Serve remain well a Growing positioned Number ofto drive Clients diversified & Earnings Growth durable earnings Through growth through the Cycle the cycle. Leverage Enhanced Apply Disciplined Enhance Financial Management Finan

  26. Slide 26: ~800 bps of operating leverage expected in 2026

    We expect to deliver ~800 bps of operating leverage in 2026 while supporting robust business momentum across the platform. vs. 2025 YTD CORE NET NEW ASSETS NEW BROKERAGE ACCOUNTS MANAGED INVESTING NET FLOWS $450B 27% 3.9M 15% $65B 38% MARGIN BALANCES1 BANK LOANS DAILY AVERAGE TRADES $188B 67% $72B 2

  27. Slide 27: Heading into 2027, strategy positions us for earnings growth

    Heading into 2027, our client-centric strategy positions us to deliver earnings growth across a range of environments.  2027 financial outlook will be shaped by a range of Serve a growing factors, including the macroeconomic environment, number of clients interest rates, market sentiment and client

  28. Slide 28: Our financial formula is built for durability through the cycle

    Our financial formula is built for durability through the cycle. Sustainable organic growth High-single-digit to Revenue low-double-digit revenue growth Diverse monetization Profitable growth Expenses Enhanced efficiency Positive operating leverage Balance Sheet Increased durability Balance sheet ma

  29. Slide 29: Q&A

    Q&A Charles Schwab Corporation 29

  30. Slide 30: Appendix

    Appendix Charles Schwab Corporation 30

  31. Slide 31: Select Annualized Revenue Sensitivities

    Select Annualized Revenue Sensitivities As of September 30, 2026 ~$40M Net Interest +/- $1B of Revenue Bank Sweep ~$250M Balances BDA Balances ~$40M – $300M ~$25M +/- 25 bps Target +/- 25 bps in +/- $1B Fed Funds Rate1 Fed Funds AMAF Margin Client ~$40M ~$40M 2 +/- 100K Balances3 ~$20M S&P 500® Trad

  32. Slide 32: Balance Sheet

    Appendix Balance Sheet (as of September 30, 2026) ($M, EOP) 3Q25 4Q25 1Q26 2Q26 3Q26 Total Assets $465,255 $490,995 $493,319 $517,266 $520,674 Bank Deposits $239,057 $255,747 $253,041 $249,682 $244,108 Payables to Brokerage Clients $115,397 $116,341 $117,986 $123,968 $125,240 Long-term Debt $20,199

  33. Slide 33: Average Interest-earning Assets and Bank Investment Portfolio

    Appendix Average Interest-earning Assets & Bank Investment Portfolio (as of September 30, 2026) 3Q26 Avg. Interest-earning Assets ($B,%)1, 2 Bank Investment Portfolio Spotlight Other IEA Fixed vs. Cash & Floating 96% Fixed / 4% Floating Equiv. 7% 8% 59% 28% 13% 42% Securities Agency RMBS Agency CMBS

  34. Slide 34: Bank Deposit Account Summary

    Appendix Bank Deposit Account Summary (as of September 30, 2026) Mix of Average BDA Balances ($B,%) BDA Balances by Maturity, EOP ($B) 14% Total Balance: $68.0 Net Rate2: 2.14% Annual Revenue3: $1,479M Fixed Maturities: $57.5 (84% of total)1 | Net Rate2: 1.86% $68.3 $17.6 $16.5 $17.5 $10.6 $6.0 86%

  35. Slide 35: Non-GAAP Introduction

    Appendix Non-GAAP Introduction In addition to disclosing financial results in accordance with generally accepted accounting principles in the U.S. (GAAP), this presentation contains references to the non-GAAP financial measures described below. We believe these non-GAAP financial measures provide us

  36. Slide 36: Non-GAAP Reconciliation: Adjusted total expenses and net income

    Appendix Non-GAAP Reconciliation: Adjusted total expenses and Adjusted net income Three Months Ended, Three Months Ended, Three Months Ended, Three Months Ended, Three Months Ended, September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Total Expenses Total Expenses Tot

  37. Slide 37: Non-GAAP Reconciliation: Adjusted pre-tax income and margin

    Appendix Non-GAAP Reconciliation: Adjusted income before taxes on income and Adjusted pre-tax profit margin Three Months Ended, Three Months Ended, Three Months Ended, Three Months Ended, Three Months Ended, September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 % of %

  38. Slide 38: Non-GAAP Reconciliation: Adjusted net income and diluted EPS

    Appendix Non-GAAP Reconciliation: Adjusted net income to common stockholders and Adjusted diluted EPS Three Months Ended, Three Months Ended, Three Months Ended, Three Months Ended, Three Months Ended, September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 (In millions,

  39. Slide 39: Non-GAAP Reconciliation: Adjusted Tier 1 Leverage Ratio

    Appendix Non-GAAP Reconciliation: Consolidated Adjusted Tier 1 Leverage Ratio Preliminary (In millions, except ratios) September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Tier 1 Leverage Ratio (GAAP) 8.9% 8.7% 8.9% 9.3% 9.7% Tier 1 Capital $ 44,782 $ 42,751 $ 41,894

  40. Slide 40: Glossary

    Glossary Abbreviations: Adj. = Adjusted RIA = Registered investment advisor AD = AdvisorDirect RMBS = Residential mortgage-backed security AI = Artificial intelligence ROCA = Revenue on client assets AMAF = Asset management and administration fees Secs. = Seconds AOCI = Accumulated other comprehensi

  41. Slide 41: Fall Business Update

    Fall Business Update October 15, 2026

Charles Schwab Corporation (The) — Q3 2026 Earnings Presentation on 6ix