Charles Schwab Corporation (the) · NYSE:SCHW
Charles Schwab Corporation (the) — Q2 2026 Earnings Presentation
41 slides from Charles Schwab Corporation (the)'s earnings presentation, Jul 21, 2026
Slide 1: Summer Business Update
Summer Business Update July 21, 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
Key Takeaways Our “Through Clients’ Eyes” strategy continues to 1 fuel strong momentum as we delivered record 2Q results Schwab is leading today Schwab is the trusted industry leader with an & uniquely 2 unmatched value proposition – uniquely positioning us at the center of the investing ecosystem p
Slide 5: Our Through Clients' Eyes strategy continues to drive record results
2Q26 vs. 2Q25 Client $120B +49% 1.4M +26% Our “Through Core Net New Assets New Brokerage Accounts Clients’ Eyes” strategy continues to drive Solutions +53% $67B +33% record results & Managed Investing Net Flows Bank Lending1 (EOP) growth across all fronts. Financial $7.1B +21% $1.62 +42% Total Net A
Slide 6: 1H26 Select Highlights
1H26 Select Highlights Service & Products & Acquisitions & Experience Solutions Partnerships We have Expanded Branch Schwab CryptoTM continued to M&A Footprint 24 / 7 Crypto Futures innovate to Financial Consultant & SWA Enhancements strengthen our Wealth Advisor Coverage Fractional Trading Investme
Slide 7: Client Promoter Scores and awards
Client Promoter Scores +9 pts +10 pts Investor Services Advisor Services 2Q26 vs. 2Q25 1H26 vs. 1H25 …as clients & third-parties recognized these efforts. Best Investing Platform, 4 years in a row Schwab was awarded by Forbes, Awarded by U.S. News1 World's Best Banks 20262 Note: Pts = Points. Q = Qu
Slide 8: Schwab remains the trusted platform of choice for investors and RIAs
Schwab remains Ranked #1 the trusted platform of $13.1T $5.7T 11.9M choice for Total in RIA Daily investors & RIAs. Client Custodial Assets Average Trades Assets Note: RIA = Registered investment advisor. T = Trillion. M = Million. Q = Quarter. Schwab figures as of 2Q26. Rankings based on publicly t
Slide 9: A convergence of forces reshaping our industry
The next generations of investors There is a convergence of Emerging asset classes & products forces reshaping our industry,… The power of artificial intelligence The bull market for convenience Charles Schwab Corporation 9
Slide 10: Investing is playing an increasingly central role in financial lives
…at a time when 62% ~2x investing is of U.S. adults own stock — highest level since 20071 Increase in holdings of equities & mutual funds in last decade2 playing an More people invest More wealth is tied to markets increasingly central role in individual’s financial lives. 61% Affluent clients that
Slide 11: Schwab 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
Slide 12: Tackling our growth opportunities head-on
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 12
Slide 13: Serve a Growing Number of Clients
Core Net New Assets and New Brokerage Accounts 19% $260 $218 $184 $157 Core NNA ($B) 2,687 Serve a Growing New Brokerage Accounts (K) 2,002 2,079 2,281 Number of Clients 1H23 1H24 1H25 1H26 across a diverse spectrum of individual investors & RIAs Total client assets ($T) $8.0 $9.4 $10.8 $13.1 Total
Slide 14: 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 14
Slide 15: Our Opportunity Pathway: Managed Investing
DEEPEN EXISTING CLIENT RELATIONSHIPS Our Opportunity Pathway ~2% Managed Investing Net Flows +50% Schwab Share of $41B $37T Advice Market2 Schwab Wealth $28B 87 pts AdvisoryTM SWA Client Schwab Advisor Promoter Score1 NetworkTM Other MI Adoption WTP 1H25 1H26 Schwab Advice Adoption vs. Willingness t
Slide 16: Our Opportunity Pathway: Bank Lending
DEEPEN EXISTING CLIENT RELATIONSHIPS Our Opportunity Pathway Bank Lending Balances Lending Penetration3 EOP ~4% 4% +33% $67B PAL $50B 85 pts 0.5% 1% PAL Client Residential Promoter Score2 Schwab Industry Real Estate1 1H25 1H26 Expanded Pledged Asset LineTM Eligibility >100 bp Ongoing Structured
Slide 17: Enhance Scale & Efficiency
Schwab Cost Per Account1 Expense on Client Assets2 (bps) $442 -21% $404 ~11 GAAP Schwab $332 ~11 Adjusted $319 Online Enhance Brokers ~33 Scale & Efficiency Wirehouses ~37 to make it easier for clients to work with us while keeping Regionals ~68 2020 2020 2025 2025 & IBDs costs low & reinvesting in
Slide 18: Powerful Combination of People + AI
Powerful Combination of People + AI AI continues to Client Experiences Supercharging Our amplify our & Capabilities People & Processes Serve a Growing advantage, Number of Clients Personalized Insights v1.0 AI-Assisted Servicing creating more Schwab AI-Powered personalized Assistant v1.0 Developer T
Slide 19: 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
Slide 20: 2Q26 revenue increased 21% year-over-year to a quarterly record
2Q26 revenue increased 21% year-over-year to a quarterly record,… 2Q26 vs. 2Q25 $7.1B NIR increased 19%, $6.5B $0.7B reflecting higher lending $6.1B $6.3B $5.9B $0.4B $0.5B balances, lower wholesale $0.4B $1.2B bank borrowing levels, & Other $0.5B $1.1B $1.1B $1.0B growth in long/short Trading $1.
Slide 21: Efficiently supported robust client engagement
…as we efficiently supported robust client engagement across the Schwab platform. 2Q26 vs. 2Q25 GAAP expenses up 12%, reflecting strong $3.4B client engagement and $3.3B $3.2B higher volumes $3.0B $3.1B GAAP 1 Adjusted expenses rose 11% $3.2B $3.2B Adjusted 1 $2.9B $3.0B $3.0B 2Q25 3Q25 4Q25 1Q2
Slide 22: Record adjusted earnings per share of $1.62
Schwab’s diversified model and leading scale combined to deliver record adjusted earnings per share of $1.62. 1 Pre-tax Profit Margin (%) Earnings per Share ($) GAAP GAAP Adjusted1 Adjusted1 54.3% 51.3% 52.2% 51.4% $1.62 50.1% $1.39 $1.43 $1.31 $1.14 50.2% 51.9% $1.54 47.9% 49.2% 49.2% $1.33 $1.37 $
Slide 23: 2Q26 Balance Sheet Highlights
2Q26 Balance Sheet Highlights Supported Client-Driven Growth 1 – Client margin balances grew to $165.1 billion as of June 30, up 47% Balance Sheet Principles from year-end 2025 – Long/short related margin increased by $20.8 billion during 2Q26 to $42.1 billion Support our clients’ evolving needs –
Slide 24: Capital ratios remained strong while supporting growth
Our capital ratios remained strong while supporting growth and opportunistic capital return. Capital Management Framework Consolidated Tier 1 Leverage Ratio 2Q26 Capital Actions Regulatory T1LR1 Adjusted T1LR1 Support ongoing business growth 9.8% $1.0B 8.7% Common stock Common dividend repurchased 7
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
Slide 26: Factors informing our 2026 financial outlook
As we enter the second half of the year, a range of factors will continue to inform our 2026 financial outlook. Winter Business Update 2026 Investor Day Interest Fed Funds finishes 2026 Fed Funds finishes 2026 at Rates at 3.25% (upper-bound) 3.75% (upper-bound) Macro Equity 6.5% appreciation ~10% ap
Slide 27: Factors informing our 2026 financial outlook (with forward curve)
As we enter the second half of the year, a range of factors will continue to inform our 2026 financial outlook. 1 Winter Business Update 2026 Investor Day Summer Business Update Forward Curve Expectations2 Interest Fed Funds finishes 2026 Fed Funds finishes 2026 at Fed Funds finishes 2026 at Rates a
Slide 28: Updated 2026 financial scenario
Our updated 2026 financial scenario reflects sustained momentum and robust client engagement through 1H26. Anticipate revenue to increase by 17.5% to 18.5% versus the prior year as clients continue to utilize our expanding set of services and solutions Revenue Strong lending utilization supports f
Slide 29: Select Annualized Revenue Sensitivities
Select Annualized Revenue Sensitivities As of June 30, 2026 ~$35M Net Interest +/- $1B of Revenue Bank Sweep ~$250M Balances BDA Balances ~$35M – $300M ~$30M +/- 25 bps Target +/- 25 bps in +/- $1B Fed Funds Rate1 Fed Funds AMAF Margin Client ~$40M ~$35M 2 +/- 100K Balances3 ~$20M S&P 500® Trading D
Slide 30: Our financial formula is built for durability through the cycle
Our financial formula is built for durability through the cycle. Sustainable organic growth High-single-digit to Revenue low-double-digit revenue growth Diverse monetization Profitable growth Expenses Enhanced efficiency Positive operating leverage Balance Sheet Increased durability Balance sheet ma
Slide 31: Q&A
Q&A Charles Schwab Corporation 31
Slide 32: Appendix
Appendix Charles Schwab Corporation 32
Slide 33: Balance Sheet (as of June 30, 2026)
Appendix Balance Sheet (as of June 30, 2026) ($M, EOP) 2Q25 3Q25 4Q25 1Q26 2Q26 Total Assets $458,936 $465,255 $490,995 $493,319 $517,266 Bank Deposits $233,058 $239,057 $255,747 $253,041 $249,682 Payables to Brokerage Clients $109,355 $115,397 $116,341 $117,986 $123,968 Long-term Debt $20,208 $20,1
Slide 34: Average Interest-earning Assets & Bank Investment Portfolio
Appendix Average Interest-earning Assets & Bank Investment Portfolio (as of June 30, 2026) 2Q26 Avg. Interest-earning Assets ($B,%)1, 2 Bank Investment Portfolio Spotlight Other IEA Fixed vs. Floating 96% Fixed / 4% Floating Cash & 9% Equiv. 7% 59% 28% 13% 44% Securities Agency RMBS Agency CMBS Othe
Slide 35: Bank Deposit Account Summary
Appendix Bank Deposit Account Summary (as of June 30, 2026) Mix of Average BDA Balances ($B,%) BDA Balances by Maturity, EOP ($B) 17% Total Balance: $70.6 Net Rate2: 1.91% Annual Revenue3: $1,370M Fixed Maturities: $59.8 (85% of total)1 | Net Rate2: 1.64% $71.9 $17.8 $18.0 $13.0 $10.9 $8.0 83% $3.0
Slide 36: 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 37: 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, Twelve Months Ended, Twelve Months Ended, June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2
Slide 38: 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, June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 % of % of %
Slide 39: 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, June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 (In millions, per
Slide 40: Non-GAAP Reconciliation: Consolidated Adjusted Tier 1 Leverage Ratio
Appendix Non-GAAP Reconciliation: Consolidated Adjusted Tier 1 Leverage Ratio Preliminary (In millions, except ratios) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Tier 1 Leverage Ratio (GAAP) 8.7% 8.9% 9.3% 9.7% 9.8% Tier 1 Capital $ 42,751 $ 41,894 $ 42,844 $ 43,
Slide 41: Summer Business Update
Summer Business Update July 21, 2026
Charles Schwab Corporation (The) — Q2 2026 Earnings Presentation on 6ix