Charles Schwab Q1 2025 Earnings Surpass Wall Street Expectations, Trading Volumes And New Accounts Surge Amid Rising Market Volatility

Shares of Charles Schwab Corp (SCHW) rallied over 3% on Thursday after the company’s first-quarter earnings surpassed Wall Street expectations.

The financial services company posted earnings per share (EPS) of $1.04 in the first quarter (Q1), beating expectations of $1.01, according to Stocktwits data.

Its revenue surged more than 18% year-on-year (YoY) to $5.6 billion, beating an estimated $5.53 billion.

The company has beaten earnings and revenue expectations consecutively for the past five quarters.

One of the drivers of Schwab’s revenue growth during the quarter was the company’s asset management business, which grew 14% YoY to $1.5 billion. 

The company said organic growth and product utilization more than offset the recent weakness in equity markets.

Net interest margins during the quarter expanded 20 basis points sequentially to 2.53%.

The company also reported a 44% YoY surge in net new assets, which rose to $137.7 billion in Q1. 

Charles Schwab CEO Rick Wurster noted that the growth was visible across the Retail, Advisor Services, and Workplace Financial Services segments.

“Schwab delivered growth on all fronts during the first quarter, converting robust organic growth, increased trading volumes, strong Managed Investing net inflows, and sustained bank lending momentum into record net revenues,” Wurster added.

Amid a rise in market volatility, Schwab reported a 17% sequential increase in its daily trading volumes. New brokerage accounts increased 8% YoY to 37 million.

The company announced an 8% increase in its quarterly dividend to $0.27 per share. It also repurchased common shares worth $1.5 billion during the quarter.

Charles Schwab’s stock has gained 5.5% year-to-date and 7.8% over the past 12 months.

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