Strong Q2 Results Driven by Trading and Interest Income
Shares of Charles Schwab (SCHW) surged to an all-time high after the investment firm reported better-than-expected second-quarter results, driven by a sharp increase in trading fees and net interest income. The discount broker posted adjusted earnings per share of $1.14, exceeding analysts’ forecasts. Revenue rose 24.8% year-over-year to $5.85 billion, also beating estimates.
The results reflect robust activity across Schwab’s financial services, including a 22.5% increase in trading revenue to $952 million and a 30.8% rise in net interest income to $2.82 billion. Additionally, bank deposit account fees spiked 61.4% to $247 million, highlighting continued client engagement and cash activity across the platform.
Client Growth and Asset Expansion Fuel Momentum
Charles Schwab reported significant growth in its client base and assets. Total client assets climbed 14% to reach a record high of $10.76 trillion. The firm added over 1 million new brokerage accounts during the quarter and brought in $80.3 billion in core net new assets, marking a 31% increase from the same period last year.
CEO Rick Wurster credited both retail investors and registered investment advisors for driving growth and sustaining momentum. Schwab’s scale and technology platform continue to attract a wide spectrum of clients, reinforcing its position as a leader in the investment services industry.
Stock Up 30% in 2025 Amid Optimistic Outlook
With shares rising nearly 30% since the beginning of the year, Schwab’s performance reflects investor confidence in its financial health and growth trajectory. The company’s ability to grow revenue through both traditional banking income and transaction-related activity sets it apart in a competitive financial landscape.
The record-breaking performance in Q2 and expanding client metrics suggest that Schwab is capitalizing on macroeconomic tailwinds, particularly higher interest rates, to strengthen its profitability. The results further support a positive outlook as the firm continues to scale across multiple financial service verticals.
