Charles Schwab Corporation (the) · NYSE:SCHW
Charles Schwab Corporation (the) — Q1 2026 Earnings Presentation
35 slides from Charles Schwab Corporation (the)'s earnings presentation, Apr 16, 2026
Slide 1: Spring Business Update
Spring Business Update April 16, 2026
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
Slide 3: Rick Wurster and Michael Verdeschi
Rick Wurster President and Chief Executive Officer Michael Verdeschi Managing Director, Chief Financial Officer Charles Schwab Corporation 3
Slide 4: Key Takeaways: Sustaining Momentum, Delivering for Clients
Key Takeaways 1 2 3 Sustaining Delivering for Accelerating Momentum Clients the Pace of Innovation Charles Schwab Corporation 4
Slide 5: Our "Through Clients' Eyes" Strategy continues
1Q26 vs. 1Q25 $140B +2% 1.3M +10% Client Core Net New Brokerage New Assets Accounts Our “Through ex-Mutual Fund Clearing $158B Clients’ Eyes” Strategy continues to drive Solutions +46% $61B +29% Managed Investing Bank Lending1 growth across Net Flows (EOP) all fronts. Financial $6.5B +16% $1.43 +38%
Slide 6: 1Q26 Highlights
1Q26 Highlights With strong execution across our key strategic Service & Products & Acquisitions & focus areas, Experience Solutions Partnerships we continued to Expand Branch Schwab Teen InvestorTM M&A deliver for Footprint Account clients… Financial Consultant & Long/Short Wealth Advisor Coverage
Slide 7: Client Promoter Scores and awards
Client Promoter Scores +9 pts 93% Investor Services Advisor Services 1Q26 vs. 1Q25 Easy Score1 1Q26 …as clients & third-parties recognized these efforts. Ranked #1 Overall Broker, 2 years in a row A Best Online Broker for 13 Years Awarded by Stockbrockers.com 2 Awarded by Investor’s Business Daily 3
Slide 8: We are accelerating our pace of innovation
Serve a Deepen Growing Number Existing Client We are of Clients Relationships accelerating Serve a Growingour paceofof Number Clients innovation Earnings Growth to deliver for Through the Cycle clients & drive earnings growth through the cycle. Leverage Enhanced Apply Disciplined Enhance Financial M
Slide 9: Deepen Existing Client Relationships
Diverse set of monetization opportunities across our businesses Advisor Retail Services Wealth Deepen Existing Client Relationships Banking & help them conduct Trading more of their financial lives at Schwab Asset Management Alternative & Private Investments Digital Assets Note: x Charles Schwab Cor
Slide 10: Deepen Existing Client Relationships
Diverse set of monetization opportunities across our businesses Advisor Retail Services Wealth Deepen Existing Client Relationships Banking & help them conduct Trading more of their financial lives at Schwab Asset Management Alternative & Private Investments Digital Assets Note: x Charles Schwab Cor
Slide 11: Wealth: Managed Investing Net Flows
Wealth Managed Investing (MI) Net Flows Schwab Wealth AdvisoryTM 46% Net Flows ($B) $22B +90% Deepen Existing $10B Client Relationships $15B $5B & help them conduct more of their financial 1Q25 1Q26 lives at Schwab 1Q25 1Q26 AMAF Revenue $1.5B $1.8B MI Avg Assets $711B $874B Note: B = Billion. Q = Q
Slide 12: Digital Assets
Digital Assets Schwab’s phased roll-out of its spot crypto offer has begun with an employee launch Initial Coins Available Competitive Pricing1 Deepen Existing Client Relationships ~ 75 bps & help them conduct more of their financial In-depth Education 24/7 Award-winning Integrated Digital lives at
Slide 13: Spotlight on Artificial Intelligence
Spotlight on Artificial Intelligence Continuing to Schwab is already an AI-enabled harness 1 company the power of artificial intelligence 2 AI is an accelerant to our strategy will help further accelerate our “Through Clients’ We are harnessing the power of Eyes” Strategy. 3 AI the Schwab way Note:
Slide 14: AI roadmap and capabilities in 2026 & beyond
Serve a In use today: growing Answer Engine Optimization number of In development: Partnering with AI platforms to reach prospective clients clients Schwab’s AI roadmap enables Initial launch in 2026: Portfolio insights Deepen us to further existing client Investor AI Assistant expand our AI relatio
Slide 15: Our momentum continued in early 2026
Serve a Deepen Growing Number Existing Client of Clients Relationships Our momentum continued in early Serve a Growing Number of Clients 2026 & we are Earnings well-positioned to Growth Through deliver earnings the Cycle growth through the cycle. Leverage Enhanced Apply Disciplined Enhance Financial
Slide 16: Key Takeaways: Starting the Year Strong
Key Takeaways 1 2 3 Starting the Supporting Delivering Value Year Strong Investors’ Needs to our Clients Charles Schwab Corporation 16
Slide 17: 1Q26 total revenue grew 16% year-over-year
1Q26 total revenue grew 16% year-over-year to a new quarterly record,… 1Q26 vs. 1Q25 $6.5B NIR increased 16%, $6.3B $6.1B $0.5B reflecting lower wholesale $5.9B $0.4B $5.6B $0.4B bank borrowing levels and $0.5B $1.1B $1.1B Other $0.5B $1.0B continued client utilization $1.0B of our lending solutio
Slide 18: Maintaining our expense discipline
…while maintaining our expense discipline. 1Q26 vs. 1Q25 GAAP expenses up 5%, reflecting typical first quarter seasonality as $3.3B $3.1B $3.2B well as robust client GAAP $3.0B $3.1B engagement Adjusted1 expenses rose 5% Adjusted1 $3.2B $3.0B $2.9B $3.0B $3.0B 1Q25 2Q25 3Q25 4Q25 1Q26 Note: Q =
Slide 19: 1Q26 adjusted earnings per share grew 38% to a record
Schwab grew 1Q26 adjusted1 earnings per share by 38% to a record $1.43. Pre-tax Profit Margin Earnings per Share GAAP GAAP Adjusted1 Adjusted1 51.3% 52.2% 51.4% 50.1% $1.43 $1.39 46.2% $1.31 $1.14 $1.04 49.2% 50.2% 49.2% $1.37 47.9% $1.33 43.8% $1.26 $0.99 $1.08 1Q25 2Q25 3Q25 4Q25 1Q26 1Q25 2Q25 3Q
Slide 20: 1Q26 Balance Sheet Highlights
1Q26 Balance Sheet Highlights Supported Client-Driven Growth – Including continued demand for our PAL® solution, bank loans to clients Balance Sheet Principles increased to $60.9 billion at quarter-end, up 5% and 29% versus 4Q25 and 1Q25, respectively Support our clients’ – Client margin balances1
Slide 21: Capital ratios remained strong while returning capital
Our capital ratios remained strong while returning capital in multiple forms. Capital Management Framework Consolidated Tier 1 Leverage Ratio 1Q26 Capital Actions Regulatory T1LR1 Adjusted T1LR1 Support ongoing business growth Increase in 9.9% 8.9% +19% common stock Common dividend dividend 7.1% pay
Slide 22: Our momentum continued into early 2026
Serve a Deepen Growing Number Existing Client Our momentum of Clients Relationships continued into Serve a Growing early 2026 as Number of Clients Earnings investors turned Growth to Schwab for Through the Cycle help with more of their financial lives. Leverage Enhanced Apply Disciplined Enhance Fin
Slide 23: Comprehensive suite of solutions and leading value proposition
Our comprehensive suite of solutions and leading value proposition enable client-aligned monetization across a range of environments. Comprehensive Wealth Industry-Leading Management Platform Value Proposition Schwab offers an expanding set of investment Clients continue to choose Schwab for our “no
Slide 24: Q&A
Q&A Charles Schwab Corporation 24
Slide 25: Appendix
Appendix Charles Schwab Corporation 25
Slide 26: Select Annualized Revenue Sensitivities
Select Annualized Revenue Sensitivities As of March 31, 2026 ~$35M Net Interest +/- $1B of Revenue Bank Sweep ~$250M - Balances BDA Balances ~$35M $300M ~$35M +/- 25 bps Target +/- 25 bps in +/- $1B Fed Funds Rate1 Fed Funds AMAF Margin Client ~$45M ~$35M +/- 100K Balances ~$20M S&P 500® Trading DAT
Slide 27: Balance Sheet (as of March 31, 2026)
Appendix Balance Sheet (as of March 31, 2026) ($M, EOP) 1Q25 2Q25 3Q25 4Q25 1Q26 Total Assets $462,903 $458,936 $465,255 $490,995 $493,319 Bank Deposits $246,160 $233,058 $239,057 $255,747 $253,041 Payables to Brokerage Clients $100,579 $109,355 $115,397 $116,341 $117,986 Long-term Debt $21,471 $20,
Slide 28: Average Interest-earning Assets & Bank Investment Portfolio
Appendix Average Interest-earning Assets & Bank Investment Portfolio (as of March 31, 2026) 1Q26 Avg. Interest-earning Assets ($B,%)1, 2 Bank Investment Portfolio Spotlight Other IEA Fixed vs. Floating 96% Fixed / 4% Floating Cash & 11% Equiv. 7% 61% 29% 10% 45% Securities Agency RMBS Agency CMBS Ot
Slide 29: Bank Deposit Account Summary
Appendix Bank Deposit Account Summary (as of March 31, 2026) Mix of Average BDA Balances ($B,%) BDA Balances by Maturity, EOP ($B) Total Balance: $73.5 Net Rate2: 1.77% Annual Revenue3: $1,322M 19% Fixed Maturities: $59.6 (81% of total)1 | Net Rate2: 1.38% $72.6 $17.7 $18.0 $14.0 $7.5 $8.5 $8.0 81%
Slide 30: 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
Slide 31: Non-GAAP Reconciliation: Adjusted total expenses and Adjusted 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, March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Total Total Total Total Total Expense
Slide 32: Non-GAAP Reconciliation: Adjusted income before taxes and pre-tax profit 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, March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 % of % of %
Slide 33: Non-GAAP Reconciliation: Adjusted net income and Adjusted 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, March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 (In millions, exc
Slide 34: Non-GAAP Reconciliation: Consolidated Adjusted Tier 1 Leverage Ratio
Appendix Non-GAAP Reconciliation: Consolidated Adjusted Tier 1 Leverage Ratio Preliminary March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Tier 1 Leverage Ratio (GAAP) 8.9% 9.3% 9.7% 9.8% 9.9% (In millions, except ratios and per share amounts) Tier 1 Capital $ 41,894
Slide 35: Spring Business Update
Spring Business Update April 16, 2026
Charles Schwab Corporation (The) — Q1 2026 Earnings Presentation on 6ix