Charles Schwab Corporation (SCHW) delivered strong fourth-quarter and full-year 2025 results that showcase growing client engagement across its platform, with people apparently doing more trading, borrowing, and wealth management than ever before.
The brokerage giant reported adjusted earnings per share of $1.39, up 38% year over year, landing right in line with analyst expectations. Quarterly revenue came in at $6.336 billion, up 19% from the same period last year but slightly below the Street's $6.369 billion estimate.
Trading and Interest Revenue Drive Growth
Trading revenue climbed 22% year over year to $1.07 billion, reflecting what the company called "continued strong engagement." Average daily trading volume hit 8.3 million trades, representing a 31% jump compared to the fourth quarter of 2024. People are clearly busy.
Net interest revenue proved even more impressive, gaining 25% year over year to reach $3.17 billion in the quarter. The net interest margin expanded by 57 basis points to 2.90%, benefiting from the higher rate environment.
Asset management and administration fees increased 15% year over year to $1.7 billion, driven by organic growth, improved equity markets, and higher utilization of wealth and asset management solutions. Margin loan balances hit $112.3 billion at quarter's end, reflecting a 34% increase compared to year-end 2024.
Record Asset Gathering and Account Growth
Total client assets reached a record $11.9 trillion in the quarter, up 18% year over year. That's a lot of money under management.
The company pulled in record fourth-quarter core net new assets of $163.9 billion, bringing total 2025 asset gathering to $519.4 billion—a 42% increase from 2024. New brokerage account openings topped 1 million for the fifth straight quarter, lifting active brokerage accounts to 38.5 million and total client accounts to 46.5 million.
Schwab ended the quarter with $46.0 billion in cash and cash equivalents. The bank held $255.7 billion in deposits at quarter's end, down 1% year over year. During the quarter, the company repurchased 29.2 million shares for $2.7 billion.
Management's Take
President and CEO Rick Wurster emphasized the breadth of client activity: "Clients are conducting more of their financial lives at Schwab, with record engagement across wealth management, trading, and banking. Net inflows into our Managed Investing solutions grew by 36% versus 2024, while bank loan originations achieved another record year."
CFO Mike Verdeschi highlighted how this diversified engagement translated to the bottom line: "Doing more for our growing client base bolsters Schwab's diversified revenue model. In 2025, the combination of our business momentum, strong engagement, and favorable equity markets resulted in record revenue of $23.9 billion—up 22% versus the prior year."
Charles Schwab shares edged up 0.02% to $101.01 during premarket trading Wednesday following the earnings release.
