Charles Schwab Corporation (the) · NYSE:SCHW
Charles Schwab Corporation (the) — Q4 2025 Earnings Presentation
38 slides from Charles Schwab Corporation (the)'s earnings presentation, Jan 21, 2026
Slide 1: Winter Business Update
Winter Business Update January 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: Presenters: 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: In 2025, our Through Clients' Eyes strategy powered growth across all fronts
FY25 vs. FY24 Client $519B +42% 4.7M +13% Core Net New Brokerage In 2025, our New Assets Accounts “Through Clients’ Eyes” strategy powered Solutions +36% $58B +28% Managed Investing Bank Lending1 growth across Net Flows (EOP) all fronts. Financial $23.9B +22% $4.87 +50% Total Net Adjusted2 EPS Reven
Slide 5: 2025 Highlights
2025 Highlights With strong execution across Service & Products & Acquisitions & our key strategic Experience Solutions Partnerships focus areas, Branch Footprint Alternative Investments M&A we continued to Financial Consultant & Select innovate. Wealth Advisor Coverage Schwab Wealth AdvisoryTM Disc
Slide 6: Client Promoter Scores and awards
DRAFT Client Promoter Scores +7 pts +5 pts Investor Services Advisor Services 4Q25 vs. 1Q25 2H25 vs. 1H25 Clients and third-parties recognized these efforts,… Charles Schwab awarded best Charles Schwab named one of the most customer service by Forbes1 trusted financial services companies Awarded by
Slide 7: Reinforced position as an industry leader
Ranked #1 ...as we further reinforced our $11.9T $5.2T 7.7M position as an Daily industry-leader. Total Client in RIA Custodial Average Assets Assets Trades Note: RIA = Registered investment advisor. T = Trillion. M = Million. Ranked based off publicly traded peers as of 3Q25. Numbers above are FY25
Slide 8: Entering 2026 with strong momentum
Serve a Deepen Growing Number Existing Client of Clients Relationships We Serve are aentering Growing 2026 withof strong Number Clients momentum & are Earnings Growth well-positioned to Through the Cycle deliver earnings growth through the cycle. Leverage Enhanced Apply Disciplined Enhance Financial
Slide 9: Serve a Growing Number of Clients
Core Net New Assets and Annualized Organic Growth Rate 5.3% 5.1% 4.4% 4.3% $519 Serve a Growing $428 Number of Clients $306 $367 4,692 across a diverse Organic Growth Rate1 Core NNA ($B) 4,044 3,806 4,170 spectrum of individual New Brokerage Accounts (K) investors & RIAs 2022 2023 2024 2025 Total cl
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: 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 12: Deepen Relationships: Wealth
Wealth Managed Investing (MI) Net Flows Schwab Advice Adoption vs. Willingness to Pay 31% 3.7x $68B Deepen Existing 5% Client Relationships Schwab Retail HH Schwab Retail & help them conduct Adoption WTP1 $18B more of their financial MI2 ROCA lives at Schwab 2022 2025 AMAF Revenue MI Avg Assets $4.2
Slide 13: Deepen Relationships: Banking
Banking Schwab Pledged Asset Bank Lending Balances1 (EOP) Line® Utilization2 +43% $58B 9% 23% $45B $40B $27B Deepen Existing PAL $14B $17B Client Relationships Residential $27B $28B $31B & help them conduct Real Estate3 UHNW Retail RIA 2023 2024 2025 more of their financial lives at Schwab Pledged A
Slide 14: Deepen Relationships: Trading
Trading NTF Retail U.S. Equities Notional Trading Volume1 Clients Initiating $206T thinkorswimTM Access ~50% Schwab handled Deepen Existing $60T ~10% of Client Relationships total volume & help them conduct 2019 2025 more of their financial Schwab Share of lives at Schwab Spot Crypto ROCA vs. Avg HH
Slide 15: Alternative & Private Investments
Alternative & Private Investments Large Opportunity to Serve Select Achievements Schwab HNW Retail and RIA Clients Launched retail Retail Advisor Services alternative investments platform $5.5T $5.2T Deepen Existing Client Assets2 Client Assets2 Expanded available Client Relationships products t
Slide 16: Enhance Scale & Efficiency
Artificial Intelligence Use Cases Adjusted3 Cost Per Account1 -21% 220+ $404 $319 Enhance 2020 2025 Scale & Efficiency Use Cases in Production: GAAP $442 $332 to make it easier for Schwab Knowledge Assistant clients to work with us EOCA vs. Select Peers (bps)2 Schwab Research Assistant while kee
Slide 17: Entering 2026 with strong momentum
Serve a Deepen Growing Number Existing Client of Clients Relationships We Serve are aentering Growing 2026 withof strong Number Clients momentum & are Earnings Growth well-positioned to Through the Cycle deliver earnings growth through the cycle. Leverage Enhanced Apply Disciplined Enhance Financial
Slide 18: 2025 Results, Financial Capabilities, 2026 Outlook
2026 2025 Financial Outlook & Results Capabilities Considerations Charles Schwab Corporation 18
Slide 19: 4Q25 total revenue grew 19% year-over-year to a new quarterly record
4Q25 total revenue grew 19% year-over-year to a new quarterly record. 4Q25 vs. 4Q24 $6.3B NIR rose 25%, reflecting $6.1B $5.9B $0.4B lower supplemental $5.6B $0.4B $5.3B $0.5B borrowings and increased $0.5B $1.1B Other $0.4B $1.0B client utilization of our $1.0B $0.9B $0.9B bank and margin lending
Slide 20: 4Q25 expenses reflect investment in growth with incremental efficiency
4Q25 expenses reflect our ability to invest in growth while driving incremental efficiency. 4Q25 vs. 4Q24 GAAP expenses up 4% Adjusted1 expenses $3.1B $3.2B rose 6%, reflecting $3.0B $3.0B $3.1B robust client engagement GAAP resulting in elevated volume-related costs as well as continued investm
Slide 21: 4Q25 adjusted EPS expanded by 38% year-over-year
4Q25 adjusted1 EPS expanded by 38% year-over-year,… 4Q25 Pre-tax Profit Revenue Expenses Earnings Per Share Margin $3.2B 50.2% $1.33 $6.3B GAAP GAAP GAAP $3.0B Adjusted1 52.2% Adjusted1 $1.39 Adjusted1 Note: B = Billion. Q = Quarter. EPS = Earnings per share. GAAP = Generally accepted accounting pri
Slide 22: Capping a year of record financial results
…capping a year of record financial results. FY25 Pre-tax Profit Revenue Expenses Earnings Per Share Margin $12.5B 47.9% $4.65 $23.9B GAAP GAAP GAAP $12.0B Adjusted1 50.0% Adjusted1 $4.87 Adjusted1 Note: B = Billion. FY = Full year. GAAP = Generally accepted accounting principles. 1. Further details
Slide 23: FY25 Balance Sheet Highlights
FY25 Balance Sheet Highlights Supported Client-Driven Growth – Client margin balances rose to finish the quarter at $112.3 billion, or up Balance Sheet Principles 34% from year-end 2024 – Bank loans to clients increased 28% versus year-end 2024 – including growth of $9.6 billion in PAL® balances S
Slide 24: Capital ratios remained strong while returning $11.8B of capital in 2025
Schwab’s capital ratios remained strong while returning $11.8B of total capital in 2025. Capital Management Framework Consolidated Tier 1 Leverage Ratio FY25 Capital Actions Regulatory T1LR1 Adjusted T1LR1 Common stock $1.9B Support ongoing business growth dividend 9.9% 9.3% Common dividend payout r
Slide 25: A range of factors will inform our 2026 results
A range of factors will inform our 2026 results. Interest Current Forward Curve Expectations1 Rates Fed Funds finishes 2026 at 3.25% (upper-bound) Macro Equity 6.5% appreciation from 2025 EOY level Markets In-line with long-term equity market returns Client Continued strong new account formation Gro
Slide 26: 2026 scenario highlights ability to deliver growth through a range of environments
Our 2026 scenario highlights our ability to deliver financial growth through a range of environments. Anticipate revenue to increase by 9.5% to 10.5% versus the prior year as clients continue to utilize our expanding set of services and solutions Revenue Full-year NIM ranging between 2.85% – 2.95%
Slide 27: Select Annualized Revenue Sensitivities
Select Annualized Revenue Sensitivities As of December 31, 2025 ~$35M Net Interest +/- $1B of Revenue Bank Sweep ~$250M Balances BDA Balances ~$35M – $300M ~$40M +/- 25 bps Target +/- 25 bps in +/- $1B Fed Funds Rate1 Fed Funds AMAF Daily Margin Average ~$35M ~$50M Balances ~$20M S&P 500® Trades +/-
Slide 28: Entering 2026 with strong momentum
Serve a Deepen Growing Number Existing Client of Clients Relationships We Serve are aentering Growing 2026 withof strong Number Clients momentum & are Earnings Growth well-positioned to Through the Cycle deliver earnings growth through the cycle. Leverage Enhanced Apply Disciplined Enhance Financial
Slide 29: Appendix
Appendix Charles Schwab Corporation 30
Slide 30: Balance Sheet
Appendix Balance Sheet (as of December 31, 2025) ($M, EOP) 4Q24 1Q25 2Q25 3Q25 4Q25 Total Assets $479,843 $462,903 $458,936 $465,255 $490,995 Bank Deposits $259,121 $246,160 $233,058 $239,057 $255,747 Payables to Brokerage Clients $101,559 $100,579 $109,355 $115,397 $116,341 Long-term Debt $22,428 $
Slide 31: Average Interest-earning Assets & Bank Investment Portfolio
Appendix Average Interest-earning Assets & Bank Investment Portfolio (as of December 31, 2025) 4Q25 Avg. Interest-earning Assets ($B,%)1, 2 Bank Investment Portfolio Spotlight Fixed vs. Floating 96% Fixed / 4% Floating Other IEA Cash & 10% Equiv. 7% 62% 28% 10% Securities Agency RMBS Agency CMBS Oth
Slide 32: Bank Deposit Account Summary
Appendix Bank Deposit Account Summary (as of December 31, 2025) Mix of Average BDA Balances ($B,%) BDA Balances by Maturity, EOP ($B) Total Balance: $76.2 Net Rate2: 1.49% Annual Revenue3: $1,156.5M 21% Fixed Maturities: $59.6 (78% of total)1 | Net Rate2: 0.96% $74.8 $16.7 $20.9 $17.8 $12.0 79% $4.0
Slide 33: 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 34: 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, Twelve Months Ended, December 31, 2025 September 30, 2025 June 30, 2025 Marc
Slide 35: 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, Twelve Months Ended, Twelve Months Ended, December 31, 2025 September 30, 2025 June 30, 2025
Slide 36: Non-GAAP Reconciliation: Adjusted net income to common 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, Twelve Months Ended, Twelve Months Ended, December 31, 2025 September 30, 2025 June 30, 2025 March
Slide 37: Non-GAAP Reconciliation: Consolidated Adjusted Tier 1 Leverage Ratio
Appendix Non-GAAP Reconciliation: Consolidated Adjusted Tier 1 Leverage Ratio Preliminary December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 Tier 1 Leverage Ratio (GAAP) 9.3% 9.7% 9.8% 9.9% 9.9% (In millions, except ratios and per share amounts) Tier 1 Capital $ 42,8
Slide 38: Winter Business Update
Winter Business Update January 21, 2026
Charles Schwab Corporation (The) — Q4 2025 Earnings Presentation on 6ix