Schwab Stock Climbs As Clients Pour In $138 Billion While Volatility Sends Others Scrambling

The Charles Schwab Corporation SCHW shares are trading higher after the company reported first-quarter results.

Revenue rose 18% year over year (Y/Y) to $5.60 billion, beating the consensus of $5.51 billion.

Net interest revenue rose 21% Y/Y to $2.706 billion in the first quarter. Clients' daily average trades totaled 7.391 billion, up 24% Y/Y.

Also Read: BofA Analyst Forecasts Slower Growth For Broker Stocks As Market Volatility Increases

Asset management and administration fees rose 14% Y/Y to $1.53 billion on organic growth and product utilization.

Trading revenue surged 11% Y/Y, led by higher volumes, in the quarter.

Adjusted net income rose 37% Y/Y to $2.01 billion. Adjusted EPS increased 41% Y/Y to $1.04, beating the consensus of $1.01.

The bank had $246.2 billion in deposits at the end of the first quarter of 2025, down 9% Y/Y. In the first quarter of FY25, core net new assets stood at $137.7 billion.

Total client assets rose 9% Y/Y to $9.93 trillion. The company's active brokerage accounts reached 37.0 million in the quarter.

Buyback: The company repurchased 19.2 million common shares for $1.5 billion in connection with The Toronto-Dominion Bank's secondary offering.

Dividend: The company raised dividend per share by 8% to 27 cents.

"Client transactional sweep cash equaled $407.8 billion at the end of March – reflecting normal first quarter deployment activity partially offset by client net selling following the re-emergence of market volatility. At the same time, we further reduced Bank Supplemental Funding to $38.1 billion at quarter-end – a 46% decrease versus 1Q24," said CFO Mike Verdeschi.

President & CEO Rick Wurster added, "Investors turned to Schwab to navigate an increasingly uncertain environment in 1Q25, entrusting us with $138 billion in core net new assets. This 44% year-over-year increase in asset gathering was powered by our unwavering focus on serving the needs of clients across Retail, Advisor Services, and Workplace Financial Services."

Investors can gain exposure to the stock via IShares U.S. Broker-Dealers & Securities Exchanges ETF IAI and iShares FinTech Active ETF BPAY.

Price Action: SCHW shares are up 3.70% at $78.50 premarket at the last check Thursday.

Read Next: