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Schwab Delivers Record Net New Assets & Earnings

10/15/2026

Record Quarterly Core Net New Assets of $190.4 Billion, Up 38% Year-Over-Year
3Q Net Revenues Reached a Record $7.2 Billion, Up 17% Year-Over-Year
Record GAAP Earnings Per Share of $1.62; $1.69 Adjusted(1) – Up 29% versus 3Q25

WESTLAKE, Texas--(BUSINESS WIRE)-- The Charles Schwab Corporation reported net income for the third quarter totaling $2.9 billion, or earnings per share of $1.62. Excluding $151 million of pre-tax transaction-related costs, adjusted(1) net income and earnings per share equaled $3.0 billion and $1.69, respectively.

Client Driven

Growth

$190.4B
3Q26 Core

Net New Assets

“During the third quarter, clients opened 1.2 million new brokerage accounts and entrusted Schwab with $190.4 billion in core net new assets – an annualized growth rate of 5.8%. We are delivering new capabilities and solutions, while our leading value proposition continues to resonate with investors and RIAs.”
President & CEO Rick Wurster

Deepen Client Relationships

55%
3Q26 Schwab Wealth Advisory™ Net Flows Growth vs. 3Q25

“As investing plays an increasingly central role in people’s financial lives, clients continue to turn to Schwab for our broad set of wealth, trading, and banking capabilities. During the quarter, Pledged Asset Line™ balances grew to $37.3 billion, up 59% year-over-year, while net flows into Schwab Wealth Advisory™ increased 55%.”
President & CEO Rick Wurster

Diversified Revenue Growth

17%
3Q26 Revenue

Growth vs. 3Q25

“Deeper client engagement across Schwab's platform continues to broaden and strengthen our revenue model, helping our third quarter revenue increase 17% year-over-year to a record $7.2 billion.”
CFO Mike Verdeschi

Strong Earnings Momentum

29%
3Q26 GAAP EPS

Growth vs. 3Q25

“Our diversified business model, continued focus on meeting clients’ evolving needs, and industry leading scale combined to drive year-over-year GAAP earnings growth of 29% to a record $1.62, or $1.69 on an adjusted(1) basis.”
CFO Mike Verdeschi

3Q26 Client and Business Highlights

  • Total client assets increased 15% year-over-year to $13.33 trillion
  • Core net new assets totaled $190.4 billion, up 38% versus 3Q25
  • New brokerage account openings equaled 1.2 million, helping bring total client accounts to 48.6 million
  • Managed Investing Solutions net flows grew 22% versus 3Q25
  • Bank loan balances equaled $72.3 billion at September month-end, up 35% year-over-year
  • Margin loan balances increased 14% quarter-over-quarter to $187.9 billion at quarter-end, including $60.7 billion related to long/short strategies (2)
  • Daily average trading volume equaled 10.7 million – up 44% versus 3Q25
  • Announced Single Stock Futures on the thinkorswim ® trading platform and plans to expand digital assets available in Schwab Crypto™
  • Introduced Charley, a new AI-powered assistant that provides U.S. retail clients with conversational access to Schwab’s tools and insights
  • Partnered with Anthropic to bring Claude for Financial Advisors directly to the independent RIAs Schwab serves
  • Schwab was recognized as one of Fortune’s 2026 Most Innovative Companies (3)

Three Months Ended
September 30,

%

Nine Months Ended
September 30,

%

Financial Highlights

2026

2025

Change

2026

2025

Change

Net revenues (in millions)

$

7,171

$

6,135

17%

$

20,725

$

17,585

18%

Net income (in millions)

GAAP

$

2,906

$

2,358

23%

$

8,185

$

6,393

28%

Adjusted

$

3,021

$

2,456

23%

$

8,539

$

6,686

28%

Diluted earnings per common share

GAAP

$

1.62

$

1.26

29%

$

4.53

$

3.33

36%

Adjusted

$

1.69

$

1.31

29%

$

4.73

$

3.49

36%

Pre-tax profit margin

GAAP

52.7

%

49.2

%

51.3

%

47.1

%

Adjusted

54.8

%

51.3

%

53.5

%

49.3

%

Return on average common stockholders’ equity (annualized)

25

%

21

%

24

%

20

%

Return on tangible common equity (annualized)

44

%

38

%

42

%

37

%

Note:

Items labeled “adjusted” are non-GAAP financial measures; further details are included on pages 10-12 of this release. All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding.

3Q26 Financial Commentary

  • Quarterly net revenues grew year-over-year by 17% to a record $7.2 billion
  • Net interest margin expanded quarter-over-quarter to 3.04%
  • Client transactional sweep cash balances ended September at $492.8 billion, an increase of $7.1 billion versus the prior quarter-end, reflecting continued demand for long/short strategies and organic growth, partially offset by client asset allocation decisions
  • Average interest-earning assets for the quarter equaled $451.5 billion, up 8% versus 3Q25
  • Asset management and administration fees grew by 14% year-over-year to $1.9 billion, powered by the firm’s organic growth and investors’ increased utilization of our wealth and asset management solutions
  • Clients remained engaged with the market, driving trading revenue of $1.2 billion, up 16% year-over-year
  • GAAP expenses for the quarter increased 9% year-over-year; excluding acquisition and integration-related costs and the amortization of acquired intangibles of $151 million, adjusted total expenses (1) were also up 9% relative to 3Q25
  • Capital ratios across the firm remained strong – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) of 8.9% and 7.0%, respectively
  • Repurchased 4.7 million shares of our common stock for $0.5 billion during the quarter

(1)

Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-12 of this release.

(2)

Client margin loans and short credits related to certain long/short strategies utilized by RIAs are excluded from interest-earning assets and company funding sources.

(3)

Fortune America’s Most Innovative Companies 2026 was given on March 25, 2026, and expires on March 24, 2027. The criteria, evaluation, and ranking were determined by Fortune, partnered with Statista. Visit https://www.fortune.com/ranking/americas-most-innovative-companies/ for more information. Schwab paid a licensing fee to Fortune for use of the award and logos.

Fall Business Update

The company will host its Fall Business Update for institutional investors this morning from 7:30 a.m. - 8:30 a.m. CT, 8:30 a.m. - 9:30 a.m. ET.

Registration for this Update webcast is accessible at https://www.aboutschwab.com/schwabevents.

Forward-Looking Statements

This press release contains forward-looking statements relating to the company’s diversified business model, scale, capabilities, solutions, value proposition, and client engagement. These forward-looking statements reflect management’s expectations as of the date hereof. Achievement of these expectations and objectives is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations. Important factors that may cause such differences are described in the company’s most recent reports on Form 10-K and Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company’s website (https://www.aboutschwab.com/financial-reports) and on the Securities and Exchange Commission’s website (https://www.sec.gov). The company makes no commitment to update any forward-looking statements.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 40.3 million active brokerage accounts, 5.9 million workplace plan participant accounts, 2.4 million banking accounts, and $13.33 trillion in client assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services™. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com.

THE CHARLES SCHWAB CORPORATION

Consolidated Statements of Income

(In millions, except per share amounts)

(Unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Net Revenues

Interest revenue

$

4,473

$

3,956

$

12,581

$

11,500

Interest expense

(997

)

(906

)

(2,604

)

(2,922

)

Net interest revenue

3,476

3,050

9,977

8,578

Asset management and administration fees

1,913

1,673

5,497

4,773

Trading revenue

1,158

995

3,462

2,855

Bank deposit account fees

345

247

973

739

Other

279

170

816

640

Total net revenues

7,171

6,135

20,725

17,585

Expenses Excluding Interest

Compensation and benefits

1,756

1,653

5,358

4,861

Professional services

325

293

935

853

Occupancy and equipment

316

280

902

824

Advertising and market development

114

101

326

305

Communications

172

149

533

478

Depreciation and amortization

196

212

595

644

Amortization of acquired intangible assets

141

127

415

385

Regulatory fees and assessments

73

59

211

225

Other

301

240

816

731

Total expenses excluding interest

3,394

3,114

10,091

9,306

Income before taxes on income

3,777

3,021

10,634

8,279

Taxes on income

871

663

2,449

1,886

Net Income

2,906

2,358

8,185

6,393

Preferred stock dividends and other

95

81

296

343

Net Income Available to Common Stockholders

$

2,811

$

2,277

$

7,889

$

6,050

Weighted-Average Common Shares Outstanding:

Basic

1,728

1,806

1,736

1,815

Diluted

1,733

1,811

1,741

1,820

Earnings Per Common Shares Outstanding:

Basic

$

1.63

$

1.26

$

4.54

$

3.33

Diluted

$

1.62

$

1.26

$

4.53

$

3.33

THE CHARLES SCHWAB CORPORATION

Financial and Operating Highlights

(Unaudited)

Q3-26 % change

2026

2025

(In millions, except per share amounts and as noted)

vs.

vs.

Third

Second

First

Fourth

Third

Q3-25

Q2-26

Quarter

Quarter

Quarter

Quarter

Quarter

Net Revenues

Net interest revenue

14%

4%

$

3,476

$

3,357

$

3,144

$

3,172

$

3,050

Asset management and administration fees

14%

5%

1,913

1,825

1,759

1,733

1,673

Trading revenue

16%

(5)%

1,158

1,215

1,089

1,066

995

Bank deposit account fees

40%

4%

345

333

295

238

247

Other

64%

(18)%

279

342

195

127

170

Total net revenues

17%

1%

7,171

7,072

6,482

6,336

6,135

Expenses Excluding Interest

Compensation and benefits

6%

(2)%

1,756

1,790

1,812

1,630

1,653

Professional services

11%

6%

325

307

303

344

293

Occupancy and equipment

13%

5%

316

301

285

293

280

Advertising and market development

13%

3%

114

111

101

115

101

Communications

15%

(13)%

172

198

163

142

149

Depreciation and amortization

(8)%

(1)%

196

198

201

206

212

Amortization of acquired intangible assets

11%

(1)%

141

142

132

127

127

Regulatory fees and assessments

24%

16%

73

63

75

62

59

Other

25%

3%

301

293

222

237

240

Total expenses excluding interest

9%

—

3,394

3,403

3,294

3,156

3,114

Income before taxes on income

25%

3%

3,777

3,669

3,188

3,180

3,021

Taxes on income

31%

—

871

869

709

721

663

Net Income

23%

4%

2,906

2,800

2,479

2,459

2,358

Preferred stock dividends and other

17%

(20)%

95

119

82

92

81

Net Income Available to Common Stockholders

23%

5%

$

2,811

$

2,681

$

2,397

$

2,367

$

2,277

Earnings per common share:

Basic

29%

5%

$

1.63

$

1.55

$

1.37

$

1.34

$

1.26

Diluted

29%

5%

$

1.62

$

1.54

$

1.37

$

1.33

$

1.26

Dividends declared per common share

19%

—

$

.32

$

.32

$

.32

$

.27

$

.27

Weighted-average common shares outstanding:

Basic

(4)%

—

1,728

1,735

1,746

1,772

1,806

Diluted

(4)%

—

1,733

1,739

1,752

1,777

1,811

Performance Measures

Pre-tax profit margin

52.7

%

51.9

%

49.2

%

50.2

%

49.2

%

Return on average common stockholders’ equity (annualized)(1)

25

%

25

%

23

%

22

%

21

%

Financial Condition (at quarter end, in billions)

Cash and cash equivalents

20%

(10)%

$

36.7

$

40.6

$

45.0

$

46.0

$

30.6

Cash and investments segregated

(33)%

(4)%

31.8

33.0

39.8

42.9

47.8

Receivables from brokers, dealers, and clearing organizations

N/M

24%

27.2

22.0

11.8

7.2

4.7

Receivables from brokerage clients — net

37%

4%

128.1

122.8

106.2

104.7

93.8

Available for sale securities

(5)%

(6)%

59.0

62.5

61.1

62.4

62.3

Held to maturity securities

(7)%

(3)%

126.6

130.6

131.7

134.0

136.7

Bank loans — net

35%

8%

72.3

67.0

60.9

58.0

53.6

Total assets

12%

1%

520.7

517.3

493.3

491.0

465.3

Bank deposits

2%

(2)%

244.1

249.7

253.0

255.7

239.1

Payables to brokers, dealers, and clearing organizations

108%

6%

46.5

43.8

28.1

25.7

22.4

Payables to brokerage clients

8%

1%

125.2

124.0

118.0

116.3

115.4

Accrued expenses and other liabilities

18%

7%

13.4

12.5

12.0

12.8

11.4

Other short-term borrowings

118%

2%

14.2

13.9

12.5

6.9

6.5

Federal Home Loan Bank borrowings

122%

N/M

2.0

0.5

—

1.9

0.9

Long-term debt

18%

5%

23.8

22.7

20.5

22.2

20.2

Total liabilities

13%

—

469.2

467.1

444.1

441.6

415.9

Stockholders’ equity

4%

3%

51.4

50.1

49.2

49.4

49.4

Total liabilities and stockholders’ equity

12%

1%

520.7

517.3

493.3

491.0

465.3

Other

Full-time equivalent employees (at quarter end, in thousands)

4%

1%

33.9

33.7

33.5

33.0

32.7

Capital expenditures — purchases of equipment, office facilities, and property, net (in millions)(2)

110%

(60)%

$

319

$

792

$

173

$

158

$

152

Expenses excluding interest as a percentage of average client assets (annualized)

0.10

%

0.11

%

0.11

%

0.11

%

0.11

%

Clients’ Daily Average Trades (DATs) (in thousands)

44%

(10)%

10,687

11,920

9,899

8,274

7,421

Number of Trading Days

1%

3%

64.0

62.0

61.0

63.0

63.5

Revenue Per Trade(3)

(20)%

3%

$

1.69

$

1.64

$

1.80

$

2.05

$

2.11

(1)

Return on average common stockholders’ equity is calculated using net income available to common stockholders divided by average common stockholders’ equity.

(2)

Second quarter of 2026 includes incremental capital expenditures of $633 million related to a multi-year software license agreement with a corresponding liability recognized in long-term debt.

(3)

Revenue per trade is calculated as trading revenue divided by the product of DATs and the number of trading days.

N/M Not meaningful. Percentage changes greater than 200% are presented as not meaningful.

THE CHARLES SCHWAB CORPORATION

Net Interest Revenue Information

(In millions, except ratios or as noted)

(Unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Average

Balance

Interest

Revenue/

Expense

Average

Yield/

Rate

Average

Balance

Interest

Revenue/

Expense

Average

Yield/

Rate

Average

Balance

Interest

Revenue/

Expense

Average

Yield/

Rate

Average

Balance

Interest

Revenue/

Expense

Average

Yield/

Rate

Interest-earning assets

Cash and cash equivalents

$

34,525

$

317

3.59

%

$

24,298

$

264

4.26

%

$

32,577

$

883

3.58

%

$

27,571

$

897

4.29

%

Cash and investments segregated

31,251

289

3.62

%

46,046

494

4.20

%

38,795

1,060

3.60

%

44,104

1,412

4.22

%

Receivables from brokerage clients(1)

123,061

1,792

5.70

%

87,292

1,454

6.52

%

113,307

4,900

5.70

%

82,992

4,154

6.60

%

Available for sale securities(2)

65,149

379

2.31

%

69,794

360

2.05

%

65,422

1,063

2.16

%

77,324

1,198

2.06

%

Held to maturity securities(2)

128,026

553

1.72

%

137,672

587

1.70

%

130,433

1,690

1.72

%

141,032

1,811

1.71

%

Bank loans

69,526

775

4.43

%

51,849

557

4.27

%

64,249

2,095

4.35

%

48,882

1,568

4.28

%

Total interest-earning assets

451,538

4,105

3.58

%

416,951

3,716

3.51

%

444,783

11,691

3.48

%

421,905

11,040

3.46

%

Securities lending revenue

238

183

507

339

Other interest revenue(1,3)

130

57

383

121

Total interest-earning assets

$

451,538

$

4,473

3.90

%

$

416,951

$

3,956

3.74

%

$

444,783

$

12,581

3.75

%

$

421,905

$

11,500

3.61

%

Funding sources

Bank deposits

$

244,309

$

139

0.23

%

$

229,281

$

248

0.43

%

$

244,451

$

371

0.20

%

$

237,488

$

1,010

0.57

%

Payables to brokers, dealers, and clearing organizations

42,113

376

3.50

%

19,131

188

3.84

%

33,165

869

3.46

%

16,673

492

3.89

%

Payables to brokerage clients(1)

106,900

59

0.22

%

96,064

67

0.28

%

106,952

174

0.22

%

92,909

176

0.25

%

Other short-term borrowings

14,349

148

4.06

%

7,593

87

4.56

%

11,531

351

4.04

%

7,314

256

4.68

%

Federal Home Loan Bank borrowings

929

10

3.97

%

7,103

79

4.35

%

776

23

3.90

%

9,180

322

4.62

%

Long-term debt

23,572

272

4.52

%

20,204

207

4.01

%

22,206

701

4.16

%

21,029

625

3.92

%

Total interest-bearing liabilities

432,172

1,004

0.91

%

379,376

876

0.91

%

419,081

2,489

0.79

%

384,593

2,881

0.99

%

Non-interest-bearing funding sources

19,366

37,575

25,702

37,312

Other interest expense(1,3)

(7

)

30

115

41

Total funding sources

$

451,538

$

997

0.86

%

$

416,951

$

906

0.86

%

$

444,783

$

2,604

0.78

%

$

421,905

$

2,922

0.92

%

Net interest revenue

$

3,476

3.04

%

$

3,050

2.88

%

$

9,977

2.97

%

$

8,578

2.69

%

(1)

Beginning in the fourth quarter of 2025, average balances of margin loans and short credits related to client long/short strategies from which the Company earns a fixed net yield are excluded from interest-earning assets and funding sources. Also beginning in the fourth quarter of 2025, related interest revenue and expense were moved from receivables from brokerage clients and payables to brokerage clients, respectively, to other interest revenue and other interest expense, respectively. Amounts and average yields have been reclassified and recalculated for 2025 periods to reflect these changes. Average margin loans related to these client strategies totaled $51.4 billion and $33.0 billion for the three and nine months ended September 30, 2026, respectively, compared to $2.8 billion and $1.3 billion for the same periods in 2025. Average short credits related to these client strategies totaled $53.3 billion and $34.2 billion for the three and nine months ended September 30, 2026, respectively, compared to $2.8 billion and $1.3 billion for the same periods in 2025.

(2)

Amounts have been calculated based on amortized cost.

(3)

Beginning in the second quarter of 2026, the net fixed yield earned on client long/short strategies is presented in other interest revenue; amounts for periods prior to the three months ended June 30, 2026 have not been recast as the impact of this change was not material.

THE CHARLES SCHWAB CORPORATION

Asset Management and Administration Fees Information

(In millions, except ratios or as noted)

(Unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Average

Client

Assets

Revenue

Average

Fee

Average

Client

Assets

Revenue

Average

Fee

Average

Client

Assets

Revenue

Average

Fee

Average

Client

Assets

Revenue

Average

Fee

Schwab money market funds

$

699,067

$

481

0.27

%

$

663,218

$

458

0.27

%

$

696,173

$

1,422

0.27

%

$

643,168

$

1,318

0.27

%

Schwab equity and bond funds, exchange-traded funds (ETFs), and collective trust funds (CTFs)

943,891

167

0.07

%

735,519

132

0.07

%

881,581

470

0.07

%

685,300

376

0.07

%

Mutual Fund OneSource ® and other no-transaction-fee funds (NTFs)

486,893

277

0.23

%

443,660

259

0.23

%

479,690

812

0.23

%

384,614

699

0.24

%

Other third-party mutual funds, ETFs, and alternatives(1)

696,598

126

0.07

%

639,677

112

0.07

%

680,066

358

0.07

%

637,610

344

0.07

%

Total mutual funds, ETFs, CTFs, and alternatives(1,2)

$

2,826,449

$

1,051

0.15

%

$

2,482,074

$

961

0.15

%

$

2,737,510

$

3,062

0.15

%

$

2,350,692

$

2,737

0.16

%

Managed investing solutions(2)

Fee-based

$

801,949

$

761

0.38

%

$

654,220

$

619

0.38

%

$

764,516

$

2,142

0.37

%

$

613,302

$

1,777

0.39

%

Non-fee-based

165,151

—

—

127,592

—

—

156,678

—

—

122,920

—

—

Total managed investing solutions

$

967,100

$

761

0.31

%

$

781,812

$

619

0.31

%

$

921,194

$

2,142

0.31

%

$

736,222

$

1,777

0.32

%

Other balance-based fees(1,3)

1,020,380

70

0.03

%

900,385

66

0.03

%

991,943

209

0.03

%

849,876

191

0.03

%

Other(4)

31

27

84

68

Total asset management and administration fees

$

1,913

$

1,673

$

5,497

$

4,773

(1)

Beginning in the first quarter of 2026, alternative investments and related revenue were moved from other balance-based fees to other third-party mutual funds, ETFs, and alternatives. Prior period amounts and average fees have been reclassified and recalculated to reflect this change.

(2)

Managed investing solutions includes managed portfolios, specialized strategies, and customized investment advice such as Schwab Wealth Advisory™, Schwab Managed Portfolios™, Managed Account Select®, Schwab Advisor Network®, Windhaven Strategies®, ThomasPartners® Strategies, Wasmer Schroeder Strategies®, Schwab Index Advantage advised retirement plan balances, Schwab Intelligent Portfolios®, Institutional Intelligent Portfolios, Schwab Intelligent Portfolios Premium, Schwab Wealth Portfolios™, AdvisorDirect®, Essential Portfolios, Selective Portfolios, and Personalized Portfolios; as well as legacy non-fee managed investing solutions including Schwab Advisor Source and certain retirement plan balances. Average client assets for managed investing solutions may also include the asset balances contained in the mutual fund and/or ETF categories listed above. For the total end of period view, please see the Monthly Activity Report.

(3)

Includes various asset-related fees, such as trust fees, 401(k) recordkeeping fees, and mutual fund clearing fees and other service fees.

(4)

Includes miscellaneous service and transaction fees, including fees relating to mutual funds and ETFs that are not balance-based.

THE CHARLES SCHWAB CORPORATION

Growth in Client Assets and Accounts

(Unaudited)

Q3-26 % Change

2026

2025

(In billions, at quarter end, except as noted)

vs.

vs.

Third

Second

First

Fourth

Third

Q3-25

Q2-26

Quarter

Quarter

Quarter

Quarter

Quarter

Assets in client accounts

Schwab One®, certain cash equivalents, and bank deposits

20%

3%

$

428.5

$

415.4

$

390.5

$

379.5

$

357.1

Bank deposit account balances

(13)%

(4)%

68.0

70.6

73.5

76.2

78.5

Proprietary mutual funds (Schwab Funds® and Laudus Funds®) and CTFs

Money market funds

5%

1%

698.7

690.5

700.8

693.8

666.4

Equity and bond funds and CTFs(1)

17%

2%

316.0

311.2

271.8

277.4

269.7

Total proprietary mutual funds and CTFs

8%

1%

1,014.7

1,001.7

972.6

971.2

936.1

Mutual Fund Marketplace® (2)

Mutual Fund OneSource® and other NTF funds

—

(3)%

472.9

485.7

443.3

454.2

473.5

Mutual fund clearing services

2%

(2)%

327.3

334.3

311.1

327.7

320.2

Other third-party mutual funds

9%

(1)%

1,350.8

1,366.0

1,263.7

1,274.3

1,237.2

Total Mutual Fund Marketplace

6%

(2)%

2,151.0

2,186.0

2,018.1

2,056.2

2,030.9

Total mutual fund assets

7%

(1)%

3,165.7

3,187.7

2,990.7

3,027.4

2,967.0

Exchange-traded funds

Proprietary ETFs(1)

27%

4%

605.1

583.7

512.6

495.3

476.0

Other third-party ETFs

27%

3%

3,046.7

2,959.7

2,579.8

2,527.5

2,395.7

Total ETF assets

27%

3%

3,651.8

3,543.4

3,092.4

3,022.8

2,871.7

Equity and other securities

16%

3%

5,383.2

5,228.4

4,566.9

4,722.6

4,624.7

Fixed income securities

4%

2%

823.9

804.5

780.6

786.8

792.1

Margin loans outstanding

93%

14%

(187.9

)

(165.1

)

(126.7

)

(112.3

)

(97.2

)

Total client assets

15%

2%

$

13,333.2

$

13,084.9

$

11,767.9

$

11,903.0

$

11,593.9

Client assets by business

Investor Services(3)

14%

2%

$

7,487.3

$

7,343.0

$

6,566.4

$

6,707.5

$

6,577.2

Advisor Services

17%

2%

5,845.9

5,741.9

5,201.5

5,195.5

5,016.7

Total client assets

15%

2%

$

13,333.2

$

13,084.9

$

11,767.9

$

11,903.0

$

11,593.9

Net growth in assets in client accounts (for the quarter ended)

Net new assets by business

Investor Services(3)

37%

88%

$

72.3

$

38.5

$

54.1

$

60.4

$

52.7

Advisor Services

47%

50%

120.1

80.2

85.8

97.8

81.7

Total net new assets

43%

62%

$

192.4

$

118.7

$

139.9

$

158.2

$

134.4

Net market gains (losses)

55.9

1,198.3

(275.0

)

150.9

702.2

Net growth (decline)

$

248.3

$

1,317.0

$

(135.1

)

$

309.1

$

836.6

New brokerage accounts (in thousands, for the quarter ended)

9%

(10)%

1,243

1,388

1,299

1,268

1,143

Client accounts (in thousands)

Active brokerage accounts

6%

1%

40,260

39,802

39,099

38,506

37,963

Banking accounts

13%

3%

2,425

2,352

2,281

2,214

2,150

Workplace Plan Participant Accounts(4)

4%

—

5,868

5,888

5,844

5,740

5,619

(1)

Includes balances held on and off the Schwab platform. As of September 30, 2026, off-platform equity and bond funds, CTFs, and ETFs were $55.0 billion, $4.9 billion, and $223.5 billion, respectively.

(2)

Excludes all proprietary mutual funds and ETFs.

(3)

Third quarter of 2026 includes net inflows of $2.0 billion from off-platform Schwab Bank Retail Certificates of Deposit (CDs). Second quarter of 2026 includes net outflows of $1.1 billion from off-platform Schwab Bank Retail CDs. First quarter of 2026 includes net outflows of $0.1 billion from off-platform Schwab Bank Retail CDs. Fourth quarter of 2025 includes net outflows of $5.7 billion from off-platform Schwab Bank Retail CDs. Third quarter of 2025 includes net outflows of $3.1 billion from off-platform Schwab Bank Retail CDs.

(4)

Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business.

The Charles Schwab Corporation Monthly Activity Report For September 2026

2025

2026

Change

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Mo.

Yr.

Number of Trading Days

21.0

23.0

18.5

21.5

20.0

19.0

22.0

21.0

20.0

21.0

22.0

21.0

21.0

Market Indices (at month end)

Dow Jones Industrial Average®

46,398

47,563

47,716

48,063

48,892

48,978

46,342

49,652

51,032

52,319

52,485

53,186

50,906

(4)%

10%

Nasdaq Composite®

22,660

23,725

23,366

23,242

23,462

22,668

21,591

24,892

26,973

26,214

25,374

26,371

26,861

2%

19%

Standard & Poor’s® 500

6,688

6,840

6,849

6,846

6,939

6,879

6,529

7,209

7,580

7,499

7,490

7,686

7,652

—

14%

Client Assets (in billions of dollars)

Beginning Client Assets

11,228.1

11,593.9

11,828.0

11,834.3

11,903.0

12,148.5

12,220.3

11,767.9

12,605.3

13,135.3

13,084.9

13,042.5

13,410.0

Net New Assets(1)

45.4

41.6

38.7

77.9

27.6

32.5

79.8

6.7

49.9

62.1

60.1

64.7

67.6

4%

49%

Net Market Gains (Losses)

320.4

192.5

(32.4

)

(9.2

)

217.9

39.3

(532.2

)

830.7

480.1

(112.5

)

(102.5

)

302.8

(144.4

)

Total Client Assets (at month end)

11,593.9

11,828.0

11,834.3

11,903.0

12,148.5

12,220.3

11,767.9

12,605.3

13,135.3

13,084.9

13,042.5

13,410.0

13,333.2

(1)%

15%

Core Net New Assets(1,2)

46.2

44.4

40.4

79.1

27.8

32.5

79.7

7.2

49.9

62.7

58.1

64.8

67.5

4%

46%

Receiving Ongoing Advisory Services (at month end)

Investor Services

792.5

807.6

817.9

824.8

849.5

866.8

841.3

895.0

925.8

929.8

933.7

956.4

947.3

(1)%

20%

Advisor Services

5,016.7

5,106.1

5,155.9

5,195.5

5,311.7

5,394.3

5,201.5

5,525.7

5,716.0

5,741.9

5,763.1

5,903.0

5,845.9

(1)%

17%

Client Accounts (at month end, in thousands)

Active Brokerage Accounts

37,963

38,145

38,266

38,506

38,730

38,925

39,099

39,300

39,536

39,802

39,940

40,090

40,260

—

6%

Banking Accounts

2,150

2,172

2,189

2,214

2,239

2,258

2,281

2,305

2,329

2,352

2,381

2,407

2,425

1%

13%

Workplace Plan Participant Accounts(3)

5,619

5,696

5,730

5,740

5,793

5,829

5,844

5,864

5,886

5,888

5,915

5,910

5,868

(1)%

4%

Client Activity

New Brokerage Accounts (in thousands)

384

429

365

474

476

395

428

437

461

490

417

424

402

(5)%

5%

Client Daily Average Trades (DATs) (in thousands)

7,832

8,617

8,459

7,746

9,512

9,922

10,232

10,328

11,813

13,615

11,648

9,821

10,547

7%

35%

Derivative Trades as a Percentage of Total Trades

22.3

%

23.8

%

21.7

%

21.4

%

20.1

%

20.1

%

20.4

%

21.4

%

19.8

%

17.7

%

20.6

%

24.2

%

20.5

%

(370) bp

(180) bp

Margin Balances at month end (in billions of dollars)(4)

97.2

105.6

110.1

112.3

116.3

120.6

126.7

136.0

154.6

165.1

169.9

177.6

187.9

6%

93%

Schwab Trading Activity Index™ (STAX)(5)

46.1

48.1

48.8

48.5

50.0

57.3

56.0

50.1

55.1

59.1

59.8

57.5

58.9

2%

28%

Selected Balances (in billions of dollars)

Average Interest-Earning Assets(6)

419.8

428.3

429.1

436.0

441.7

434.2

436.8

444.6

442.0

448.4

449.9

453.0

453.5

—

8%

Transactional Sweep Cash(4,7) (at month end)

425.6

428.8

427.5

453.7

433.3

436.1

461.5

467.6

472.4

485.7

476.8

483.3

492.8

2%

16%

Total Money Market Funds (at month end)

667.0

675.5

685.9

694.5

693.4

696.2

702.2

688.1

694.6

691.9

695.3

702.5

700.5

—

5%

Client Cash as a Percentage of Client Assets(8)

9.4

%

9.3

%

9.4

%

9.7

%

9.3

%

9.3

%

9.9

%

9.2

%

8.9

%

9.0

%

9.0

%

8.8

%

8.9

%

10 bp

(50) bp

Net Buy (Sell) Activity (in billions of dollars)(9)

Mutual Funds

(4.8

)

(6.3

)

(7.3

)

(3.6

)

(0.9

)

(2.4

)

(8.5

)

(5.7

)

(7.4

)

(10.4

)

(6.0

)

(7.0

)

(12.7

)

Exchange-Traded Funds (ETFs)

25.6

28.1

24.9

39.8

34.8

37.4

25.3

27.4

34.2

32.0

36.3

34.2

27.8

(1)

Unless otherwise noted, differences between net new assets and core net new assets are net flows from off-platform Schwab Bank Retail CDs.

(2)

Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $25 billion) relating to a specific client, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods.

(3)

Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business.

(4)

Balances include margin loans and short credits related to certain long/short strategies from which the Company earns a fixed net yield. For the month of September 2026, margin loans totaled $60.7 billion and short credits totaled $63.3 billion.

(5)

For additional information regarding STAX, please visit: https://www.schwab.com/investment-research/stax/view-schwab-trading-activity-index.

(6)

Represents average total interest-earning assets on the Company’s balance sheet. Beginning in December 2025, average balances of margin loans and short credits related to client long/short strategies from which the Company earns a fixed net yield are excluded from average interest-earning assets. Prior period amounts have been adjusted accordingly.

(7)

Transactional sweep cash includes bank sweep deposits, broker-dealer cash balances, other client cash held on the balance sheet (such as bank checking and savings deposits, short credits related to certain client long/short strategies, and broker-dealer non-interest-bearing credits), and bank deposit account balances; excludes proprietary and third-party CDs.

(8)

Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets; client cash excludes brokered CDs issued by Charles Schwab Bank.

(9)

Represents the principal value of client mutual fund and ETF transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to investment managers. Excludes money market fund transactions.

THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)

In addition to disclosing financial results in accordance with generally accepted accounting principles in the U.S. (GAAP), Schwab’s third quarter earnings release contains references to the non-GAAP financial measures described below. We believe these non-GAAP financial measures provide useful supplemental information about the financial performance of the Company, and facilitate meaningful comparison of Schwab’s results in the current period to both historic and future results. These non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may not be comparable to non-GAAP financial measures presented by other companies.

Schwab’s use of non-GAAP measures is reflective of certain adjustments made to GAAP financial measures as described below.

Non-GAAP Adjustment or Measure

Definition

Usefulness to Investors and Uses by Management

Acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs

Schwab adjusts certain GAAP financial measures to exclude the impact of acquisition and integration-related costs incurred as a result of the Company’s acquisitions, amortization of acquired intangible assets, restructuring costs, and, where applicable, the income tax effect of these expenses.

Adjustments made to exclude amortization of acquired intangible assets are reflective of all acquired intangible assets, which were recorded as part of purchase accounting. These acquired intangible assets contribute to the Company’s revenue generation. Amortization of acquired intangible assets will continue in future periods over their remaining useful lives.

We exclude acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs for the purpose of calculating certain non-GAAP measures because we believe doing so provides additional transparency of Schwab’s ongoing operations, and is useful in both evaluating the operating performance of the business and facilitating comparison of results with prior and future periods.

Costs related to acquisition and integration or restructuring fluctuate based on the timing of acquisitions, integration and restructuring activities, thereby limiting comparability of results among periods, and are not representative of the costs of running the Company’s ongoing business. Amortization of acquired intangible assets is excluded because management does not believe it is indicative of the Company’s underlying operating performance.

Return on tangible common equity

Return on tangible common equity represents annualized adjusted net income available to common stockholders as a percentage of average tangible common equity. Tangible common equity represents common equity less goodwill, acquired intangible assets — net, and related deferred tax liabilities.

Acquisitions typically result in the recognition of significant amounts of goodwill and acquired intangible assets. We believe return on tangible common equity may be useful to investors as a supplemental measure to facilitate assessing capital efficiency and returns relative to the composition of Schwab’s balance sheet.

Adjusted Tier 1 Leverage Ratio

Adjusted Tier 1 Leverage Ratio represents the Tier 1 Leverage Ratio as prescribed by bank regulatory guidance for the consolidated company and for Charles Schwab Bank, SSB (CSB), adjusted to reflect the inclusion of accumulated other comprehensive income (AOCI) in the ratio.

Inclusion of the impacts of AOCI in the Company’s Tier 1 Leverage Ratio provides additional information regarding the Company’s current capital position. We believe Adjusted Tier 1 Leverage Ratio may be useful to investors as a supplemental measure of the Company’s capital levels.

The Company also uses adjusted diluted EPS and return on tangible common equity as components of performance criteria for employee bonus and certain executive management incentive compensation arrangements. The Compensation Committee of CSC’s Board of Directors maintains discretion in evaluating performance against these criteria. Additionally, the Company uses adjusted Tier 1 Leverage Ratio in managing capital, including its use of the measure as its long-term operating objective.

THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)

The tables below present reconciliations of GAAP measures to non-GAAP measures:

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Total
Expenses
Excluding
Interest

Net

Income

Total
Expenses
Excluding
Interest

Net

Income

Total
Expenses
Excluding
Interest

Net

Income

Total
Expenses Excluding
Interest

Net

Income

Total expenses excluding interest (GAAP), Net income (GAAP)

$

3,394

$

2,906

$

3,114

$

2,358

$

10,091

$

8,185

$

9,306

$

6,393

Amortization of acquired intangible assets

(141

)

141

(127

)

127

(415

)

415

(385

)

385

Acquisition and integration-related costs(1)

(10

)

10

—

—

(49

)

49

—

—

Income tax effects(2)

N/A

(36

)

N/A

(29

)

N/A

(110

)

N/A

(92

)

Adjusted total expenses (non-GAAP), Adjusted net income (non-GAAP)

$

3,243

$

3,021

$

2,987

$

2,456

$

9,627

$

8,539

$

8,921

$

6,686

(1)

Acquisition and integration-related costs for the three months ended September 30, 2026 primarily consist of compensation and benefits. Acquisition and integration-related costs for the nine months ended September 30, 2026 primarily consist of $34 million of compensation and benefits and $14 million of professional services. There were no acquisition and integration-related costs for the three and nine months ended September 30, 2025.

(2)

The income tax effects of the non-GAAP adjustments are determined using an effective tax rate reflecting the exclusion of non-deductible acquisition costs and are used to present the acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs on an after-tax basis.

N/A Not applicable.

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Amount

% of

Total Net Revenues

Amount

% of

Total Net Revenues

Amount

% of

Total Net Revenues

Amount

% of

Total Net Revenues

Income before taxes on income (GAAP), Pre-tax profit margin (GAAP)

$

3,777

52.7

%

$

3,021

49.2

%

$

10,634

51.3

%

$

8,279

47.1

%

Amortization of acquired intangible assets

141

2.0

%

127

2.1

%

415

2.0

%

385

2.2

%

Acquisition and integration-related costs

10

0.1

%

—

—

49

0.2

%

—

—

Adjusted income before taxes on income (non-GAAP), Adjusted pre-tax profit margin (non-GAAP)

$

3,928

54.8

%

$

3,148

51.3

%

$

11,098

53.5

%

$

8,664

49.3

%

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Amount

Diluted

EPS

Amount

Diluted

EPS

Amount

Diluted

EPS

Amount

Diluted

EPS

Net income available to common stockholders (GAAP), Earnings per common share — diluted (GAAP)

$

2,811

$

1.62

$

2,277

$

1.26

$

7,889

$

4.53

$

6,050

$

3.33

Amortization of acquired intangible assets

141

.08

127

.07

415

.24

385

.21

Acquisition and integration-related costs

10

.01

—

—

49

.03

—

—

Income tax effects

(36

)

(.02

)

(29

)

(.02

)

(110

)

(.07

)

(92

)

(.05

)

Adjusted net income available to common stockholders (non-GAAP), Adjusted diluted EPS (non-GAAP)

$

2,926

$

1.69

$

2,375

$

1.31

$

8,243

$

4.73

$

6,343

$

3.49

THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Return on average common stockholders’ equity — annualized (GAAP)

25

%

21

%

24

%

20

%

Average common stockholders’ equity

$

44,584

$

42,655

$

43,948

$

40,903

Less: Average goodwill

(12,290

)

(11,951

)

(12,121

)

(11,951

)

Less: Average acquired intangible assets — net

(7,212

)

(7,423

)

(7,187

)

(7,552

)

Plus: Average deferred tax liabilities related to goodwill and acquired intangible assets — net

1,753

1,695

1,704

1,695

Average tangible common equity

$

26,835

$

24,976

$

26,344

$

23,095

Adjusted net income available to common stockholders(1)

$

2,926

$

2,375

$

8,243

$

6,343

Return on tangible common equity — annualized (non-GAAP)

44

%

38

%

42

%

37

%

(1)

See table above for the reconciliation of net income available to common stockholders to adjusted net income available to common stockholders (non-GAAP).

(Preliminary)

September 30, 2026

CSC

CSB

Tier 1 Leverage Ratio (GAAP)

8.9

%

10.6

%

Tier 1 Capital

$

44,782

$

26,925

Plus: AOCI adjustment

(10,389

)

(9,043

)

Adjusted Tier 1 Capital

34,393

17,882

Average assets with regulatory adjustments

501,735

255,095

Plus: AOCI adjustment

(9,894

)

(8,746

)

Adjusted average assets with regulatory adjustments

$

491,841

$

246,349

Adjusted Tier 1 Leverage Ratio (non-GAAP)

7.0

%

7.3

%

MEDIA
Mayura Hooper, 415-667-1525
public.relations@schwab.com

INVESTORS/ANALYSTS
Kartik Sharma, 817-662-7648
investor.relations@schwab.com

Source: The Charles Schwab Corporation

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