Schwab Earnings Jump 30%, Adds Crypto Trading

Revenue climbed 16% to a record $6.5 billion, in line with forecasts from FactSet, and total client assets rose 19% to $11.8 trillion. Daily average trades hit a record 9.9 million for the quarter, up 34% year over year, with trading revenue growing 20% and net interest income rising 16%.

Asset management and administration fees increased 15% to $1.8 billion. Schwab CEO Rick Wurster linked the trading surge to a cautious investor mindset amid geopolitical and economic uncertainties.

Schwab also reported strong client engagement, with core net new assets totaling $140 billion and 1.3 million new brokerage accounts. The company is enhancing its RIA platform with digital experience upgrades and modernizing tools, with CFO Michael Verdeschi noting cash levels across the RIA platform are around 10% of client assets.

Looking ahead, Schwab will roll out AI tools capable of analyzing client portfolios and responding to general financial questions. Despite these strong results, Schwab's stock fell nearly 5% in midday trading Thursday, following earlier gains from reports of a potential rule change for "pattern day traders."