SCHWAB CHARLES CORPfalse000031670900003167092025-01-212025-01-210000316709us-gaap:CommonStockMember2025-01-212025-01-210000316709us-gaap:SeriesDPreferredStockMember2025-01-212025-01-210000316709schw:SeriesJPreferredStockMember2025-01-212025-01-21

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (date of earliest event reported): January 21, 2025

The Charles Schwab Corporation

(Exact name of registrant as specified in its charter)

Commission File Number:  1-9700
Delaware
94-3025021
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)

3000 Schwab Way, Westlake, TX 76262
(Address of principal executive offices, including zip code)

(817) 859-5000
(Registrant’s telephone number, including area code)

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock – $.01 par value per shareSCHWNew York Stock Exchange
Depositary Shares, each representing a 1/40th ownership interest in a share of 5.95% Non-Cumulative Preferred Stock, Series DSCHW PrDNew York Stock Exchange
Depositary Shares, each representing a 1/40th ownership interest in a share of 4.450% Non-Cumulative Preferred Stock, Series JSCHW PrJNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02Results of Operations and Financial Condition

On January 21, 2025, The Charles Schwab Corporation issued a press release announcing its financial results for the quarter ended December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 to this report.

Item 9.01Financial Statements and Exhibits
(d)
Exhibits
Exhibit No.Description
99.1
104Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.




Signature(s)


    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



THE CHARLES SCHWAB CORPORATION
Date:January 21, 2025By:
/s/ Michael Verdeschi
Michael Verdeschi
Managing Director and Chief Financial Officer






Exhibit 99.1
cslogoa03.jpg
SCHWAB REPORTS FOURTH QUARTER AND FULL YEAR RESULTS
December Core Net New Assets Equal $61.4 Billion, 4Q24 Totals $114.8 Billion
4Q Net Revenues Up 20% Year-Over-Year to $5.3 Billion
 Quarterly GAAP Earnings Per Share of $.94, $1.01 Adjusted (1) – Up 49% Versus 4Q23

WESTLAKE, Texas, January 21, 2025 – The Charles Schwab Corporation reported net income for the fourth quarter totaling $1.8 billion, or $.94 earnings per share. Excluding $177 million of pre-tax transaction-related and restructuring costs, adjusted (1) net income and earnings per share equaled $2.0 billion and $1.01, respectively.

Client Driven
Growth
 
$367B
2024 Core
Net New Assets

“In the fourth quarter of 2024, we added $115 billion in core net new assets, bringing asset gathering for the year to $367 billion – a 4.3% annualized growth rate. This 20% annual increase in net new assets reflects our ongoing progress following the Ameritrade integration.”
CEO Rick Wurster
Revenue Growth

20%
4Q24 Revenue
Growth vs. 4Q23

“Strong client engagement, increased margin utilization, encouraging client cash trends, and record net inflows into our Managed Investing Solutions helped lift 4Q24 revenue to $5.3 billion, – an increase of 20% year-over-year.”
CEO Rick Wurster

Through-
the-Cycle Profitability


46.6%
4Q24 Adjusted
Pre-Tax Profit Margin (1)

“The combination of 20% revenue growth and disciplined expense management resulted in a 4Q24 pre-tax profit margin of 43.3% – 46.6% adjusted (1) – as well as quarterly GAAP and adjusted (1) earnings per share growth of 84% and 49%, respectively.”
CFO Mike Verdeschi
Balance Sheet
Management

$14.9B
4Q24 Reduction in Bank Supplemental Funding (2)

“Client transactional sweep cash grew by $35 billion versus 3Q24, including a $25 billion increase in December due to typical year-end seasonality. This build helped us further reduce Bank Supplemental Funding by $14.9 billion to $49.9 billion – down ~50% from peak levels.”
CFO Mike Verdeschi

4Q24 Client and Business Highlights

•Net asset gathering helped total client assets increase 19% year-over-year to $10.10 trillion
•Core net new assets equaled $114.8 billion, bringing full year total to $366.9 billion – up 20% versus 2023
•New brokerage account openings increased 23% year-over-year to 1.1 million for the quarter, pushing total active accounts to 36.5 million
•Managed Investing Solutions net inflows of $15 billion brought the full-year total to a record $55 billion – with converted Retail Ameritrade clients accounting for approximately 35% of net inflows
•Margin balances grew sequentially by 15% to $83.8 billion, up 34% from year-end 2023
•Trading activity increased 11% relative to the prior quarter as client engagement surged following the election
•Retail client satisfaction scores achieved record levels, while Advisor Services promoter scores remained above pre-conversion levels
•Schwab was awarded America’s Best Customer Service 2025 by Newsweek (3)
•Schwab Mobile recognized as the #1 mobile investing app by Corporate Insight (4)

- 1 -

Three Months Ended
December 31,		%Twelve Months Ended
December 31,		%
Financial Highlights20242023Change20242023Change
Net revenues (in millions)$5,329 $4,459 20%$19,606 $18,837 4%
Net income (in millions)
GAAP$1,840 $1,045 76%$5,942 $5,067 17%
Adjusted$1,974 $1,367 44%$6,433 $6,159 4%
Diluted earnings per common share
GAAP$.94 $.51 84%$2.99 $2.54 18%
Adjusted$1.01 $.68 49%$3.25 $3.13 4%
Pre-tax profit margin
GAAP43.3 %26.8 %39.2 %33.9 %
Adjusted46.6 %36.0 %42.5 %41.5 %
Return on average common
stockholders’ equity (annualized)18 %12 %15 %16 %
Return on tangible
common equity (annualized)36 %43 %35 %54 %
Note: Items labeled “adjusted” are non-GAAP financial measures; 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. All per-share results are rounded to the nearest cent, based on weighted-average diluted common
          shares outstanding.

4Q24 Financial Commentary

•Net revenues grew on both a year-over-year and sequential basis, up 20% and 10%, respectively
•Sequential net interest margin expanded by 25 basis points to 2.33%
•Client transactional sweep cash balances ended at $418.6 billion, a sequential increase of $34.6 billion
•Bank Supplemental Funding (2) declined sequentially by $14.9 billion to $49.9 billion at December month-end
•Asset management and administration fees achieved a quarterly record of $1.5 billion
•Trading revenue increased 14% versus 4Q23 as a result of higher volumes and changes in trading mix
•GAAP expenses for the quarter declined 7% versus 4Q23
•Fourth quarter acquisition and integration-related costs, amortization of acquired intangibles, and restructuring costs equaled $177 million; exclusive of these items, adjusted total expenses (1) were flat year-over-year
•Capital ratios across the firm continue to strengthen – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) reaching 9.9% and 6.8%, respectively
•Results reflect certain items, including the resolution of previously accrued tax and legal reserves, which contributed $.03 to both GAAP and adjusted diluted earnings per share (1)
(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) Bank Supplemental Funding includes repurchase agreements at the banks, Schwab Bank Certificates of Deposit (CDs), and Federal Home Loan Bank balances.
(3) Newsweek America’s Best Customer Service 2025 was given on October 30, 2024, and expires November 1, 2025. The criteria, evaluation, and ranking were determined by Newsweek, partnered with Statista. Visit https://d.newsweek.com/en/file/473784/newsweek-americas-best-customer-service-2025-methodology.pdf for more information. Schwab paid a licensing fee to Newsweek for use of the award and logos.
(4) Schwab leads in mobile rankings in Corporate Insight’s 2024 Brokerage Experience Benchmarks (https://corporateinsight.com/the-2024-brokerage-experience-benchmarks), which evaluate the individual investor experience offered by 20 leading brokerage websites and mobile apps. This research was independently conducted by Corporate Insight using the Experience Benchmarks’ analytical frameworks that are built on over 25 years of research to provide a clear view of how the nation’s top brokerage websites and mobile apps stack up against one another in terms of functionality, design, navigation, and usability.

Winter Business Update
The company will host its Winter 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 ongoing progress following the Ameritrade acquisition; asset gathering; client cash trends; competitive position; through-the-cycle profitability; and capital ratios. 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.
- 2 -

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 36.5 million active brokerage accounts, 5.4 million workplace plan participant accounts, 2.0 million banking accounts, and $10.10 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.

Contact Information

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

INVESTORS/ANALYSTS
Jeff Edwards, 817-854-6177
investor.relations@schwab.com
- 3 -


THE CHARLES SCHWAB CORPORATION
Consolidated Statements of Income
(In millions, except per share amounts)
(Unaudited)




Three Months Ended
December 31,		Twelve Months Ended
December 31,
2024202320242023
Net Revenues
Interest revenue$3,851 $3,963 $15,537 $16,111 
Interest expense(1,320)(1,833)(6,393)(6,684)
Net interest revenue2,531 2,130 9,144 9,427 
Asset management and administration fees
1,509 1,241 5,716 4,756 
Trading revenue873 767 3,264 3,230 
Bank deposit account fees241 174 729 705 
Other175 147 753 719 
Total net revenues5,329 4,459 19,606 18,837 
Expenses Excluding Interest
Compensation and benefits1,533 1,409 6,043 6,315 
Professional services297 253 1,053 1,058 
Occupancy and equipment276 331 1,060 1,254 
Advertising and market development101 104 397 397 
Communications131 144 591 629 
Depreciation and amortization224 238 916 804 
Amortization of acquired intangible assets130 130 519 534 
Regulatory fees and assessments89 270 398 547 
Other243 386 937 921 
Total expenses excluding interest3,024 3,265 11,914 12,459 
Income before taxes on income2,305 1,194 7,692 6,378 
Taxes on income465 149 1,750 1,311 
Net Income1,840 1,045 5,942 5,067 
Preferred stock dividends and other123 119 464 418 
Net Income Available to Common Stockholders$1,717 $926 $5,478 $4,649 
Weighted-Average Common Shares Outstanding:
Basic1,831 1,823 1,828 1,824 
Diluted1,836 1,828 1,834 1,831 
Earnings Per Common Shares Outstanding (1):
Basic$.94 $.51 $3.00 $2.55 
Diluted$.94 $.51 $2.99 $2.54 
(1) The Company has voting and nonvoting common stock outstanding. As the participation rights, including dividend and liquidation rights, are identical between the voting and nonvoting stock classes, basic and diluted earnings per share are the same for each class.
        
- 4 -

THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)
Q4-24 % change20242023
vs.vs.FourthThirdSecondFirstFourth
(In millions, except per share amounts and as noted)Q4-23Q3-24QuarterQuarterQuarterQuarterQuarter
Net Revenues
Net interest revenue19 %14 %$2,531 $2,222 $2,158 $2,233 $2,130 
Asset management and administration fees22 %2 %1,509 1,476 1,383 1,348 1,241 
Trading revenue 14 %10 %873 797 777 817 767 
Bank deposit account fees39 %59 %241 152 153 183 174 
Other 19 %(13)%175 200 219 159 147 
Total net revenues20 %10 %5,329 4,847 4,690 4,740 4,459 
Expenses Excluding Interest
Compensation and benefits (1)
9 %1 %1,533 1,522 1,450 1,538 1,409 
Professional services17 %16 %297 256 259 241 253 
Occupancy and equipment(17)%2 %276 271 248 265 331 
Advertising and market development(3)%— 101 101 107 88 104 
Communications(9)%(11)%131 147 172 141 144 
Depreciation and amortization (6)%(3)%224 231 233 228 238 
Amortization of acquired intangible assets— — 130 130 129 130 130 
Regulatory fees and assessments(67)%1 %89 88 96 125 270 
Other (2)
(37)%(6)%243 259 249 186 386 
Total expenses excluding interest(7)%1 %3,024 3,005 2,943 2,942 3,265 
Income before taxes on income93 %25 %2,305 1,842 1,747 1,798 1,194 
Taxes on incomeN/M7 %465 434 415 436 149 
Net Income76 %31 %1,840 1,408 1,332 1,362 1,045 
Preferred stock dividends and other3 %13 %123 109 121 111 119 
Net Income Available to Common Stockholders85 %32 %$1,717 $1,299 $1,211 $1,251 $926 
Earnings per common share (3):
Basic84 %32 %$.94 $.71 $.66 $.69 $.51 
Diluted84 %32 %$.94 $.71 $.66 $.68 $.51 
Dividends declared per common share— — $.25 $.25 $.25 $.25 $.25 
Weighted-average common shares outstanding:
Basic— — 1,831 1,829 1,828 1,825 1,823 
Diluted— — 1,836 1,834 1,834 1,831 1,828 
Performance Measures
Pre-tax profit margin43.3 %38.0 %37.2 %37.9 %26.8 %
Return on average common stockholders’ equity (annualized) (4)
18 %14 %14 %15 %12 %
Financial Condition (at quarter end, in billions)
Cash and cash equivalents(3)%21 %$42.1 $34.9 $25.4 $31.8 $43.3 
Cash and investments segregated20 %13 %38.2 33.7 21.7 25.9 31.8 
Receivables from brokerage clients — net24 %15 %85.4 74.0 72.8 71.2 68.7 
Available for sale securities(23)%(8)%83.0 90.0 93.6 101.1 107.6 
Held to maturity securities(8)%(2)%146.5 149.9 153.2 156.4 159.5 
Bank loans — net12 %4 %45.2 43.3 42.2 40.8 40.4 
Total assets(3)%3 %479.8 466.1 449.7 468.8 493.2 
Bank deposits(11)%5 %259.1 246.5 252.4 269.5 290.0 
Payables to brokers, dealers, and clearing organizations (5)
102 %(19)%13.3 16.4 5.9 6.7 6.6 
Payables to brokerage clients20 %14 %101.6 89.2 80.0 84.0 84.8 
Other short-term borrowings(9)%(43)%6.0 10.6 10.0 8.4 6.6 
Federal Home Loan Bank borrowings(37)%(26)%16.7 22.6 24.4 24.0 26.4 
Long-term debt(14)%— 22.4 22.4 22.4 22.9 26.1 
Stockholders’ equity18 %3 %48.4 47.2 44.0 42.4 41.0 
Other
Full-time equivalent employees (at quarter end, in thousands)(3)%— 32.1 32.1 32.3 32.6 33.0 
Capital expenditures — purchases of equipment, office facilities, and property,
  net (in millions)		30 %91 %$258 $135 $92 $122 $199 
Expenses excluding interest as a percentage of average client assets (annualized)0.12 %0.12 %0.13 %0.14 %0.16 %
Clients’ Daily Average Trades (DATs) (in thousands)
22 %11 %6,312 5,697 5,486 5,958 5,192 
Number of Trading Days1 %(1)%63.0 63.5 63.0 61.0 62.5 
Revenue Per Trade (6)
(7)%— $2.20 $2.20 $2.25 $2.25 $2.36 
(1) Fourth quarter of 2023 includes $16 million in restructuring costs.
(2) Fourth quarter of 2023 includes $181 million in restructuring costs.
(3) The Company has voting and nonvoting common stock outstanding. As the participation rights, including dividend and liquidation rights, are identical between the voting and nonvoting stock classes, basic and diluted earnings per share are the same for each class.
(4) Return on average common stockholders’ equity is calculated using net income available to common stockholders divided by average common stockholders’ equity.
(5) Payables to brokers, dealers, and clearing organizations include securities loaned.
(6) Revenue per trade is calculated as trading revenue divided by the product of DATs multiplied by the number of trading days.
N/M Not meaningful. Percentage changes greater than 200% are presented as not meaningful.
- 5 -

THE CHARLES SCHWAB CORPORATION
Net Interest Revenue Information
(In millions, except ratios or as noted)
(Unaudited)
Three Months Ended
December 31,		Twelve Months Ended
December 31,
2024202320242023
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$28,332 $334 4.61 %$35,312 $475 5.27 %$29,676 $1,539 5.10 %$37,846 $1,894 4.94 %
Cash and investments segregated36,510 429 4.60 %23,830 314 5.16 %28,450 1,443 4.99 %28,259 1,355 4.73 %
Receivables from brokerage clients77,524 1,378 6.95 %62,602 1,260 7.88 %70,811 5,420 7.53 %61,914 4,793 7.64 %
Available for sale securities (1)
92,216 486 2.09 %118,831 647 2.16 %101,659 2,166 2.12 %137,178 2,987 2.17 %
Held to maturity securities (1)
147,608 638 1.72 %160,378 700 1.74 %152,566 2,636 1.72 %165,634 2,872 1.73 %
Bank loans44,248 483 4.36 %40,386 437 4.31 %42,255 1,867 4.42 %40,234 1,664 4.14 %
Total interest-earning assets426,438 3,748 3.46 %441,339 3,833 3.43 %425,417 15,071 3.51 %471,065 15,565 3.28 %
Securities lending revenue72 78 330 419 
Other interest revenue31 52 136 127 
Total interest-earning assets$426,438 $3,851 3.56 %$441,339 $3,963 3.54 %$425,417 $15,537 3.61 %$471,065 $16,111 3.39 %
Funding sources
Bank deposits$244,176 $550 0.90 %$280,380 $971 1.37 %$256,212 $3,152 1.23 %$306,505 $3,363 1.10 %
Payables to brokers, dealers, and
  clearing organizations (2)
13,045 142 4.28 %5,386 51 3.72 %8,522 372 4.30 %4,477 147 3.23 %
Payables to brokerage clients82,279 43 0.21 %61,781 66 0.43 %72,776 272 0.37 %66,842 271 0.41 %
Other short-term borrowings9,094 122 5.33 %6,724 95 5.63 %9,146 504 5.51 %7,144 375 5.25 %
Federal Home Loan Bank borrowings19,392 257 5.18 %31,630 423 5.28 %23,102 1,245 5.32 %34,821 1,810 5.14 %
Long-term debt22,438 206 3.67 %25,457 226 3.54 %23,083 846 3.66 %22,636 715 3.16 %
Total interest-bearing liabilities (2)
390,424 1,320 1.34 %411,358 1,832 1.77 %392,841 6,391 1.62 %442,425 6,681 1.51 %
Non-interest-bearing funding sources (2)
36,014 29,981 32,576 28,640 
Other interest expense— 1 2 3 
Total funding sources$426,438 $1,320 1.23 %$441,339 $1,833 1.65 %$425,417 $6,393 1.49 %$471,065 $6,684 1.41 %
Net interest revenue$2,531 2.33 %$2,130 1.89 %$9,144 2.12 %$9,427 1.98 %
(1) Amounts have been calculated based on amortized cost.
(2) Beginning in 2024, payables to brokers, dealers, and clearing organizations is presented separately from non-interest-bearing funding sources and included in total interest-bearing liabilities. This line item includes securities loaned and related interest expense. Prior period amounts have been reclassified to reflect this change.
- 6 -

THE CHARLES SCHWAB CORPORATION
Asset Management and Administration Fees Information
(In millions, except ratios or as noted)
(Unaudited)

Three Months Ended
December 31,		Twelve Months Ended
December 31,
2024202320242023
Average
Client
Assets		RevenueAverage
Fee		Average
Client
Assets		RevenueAverage
Fee		Average
Client
Assets		RevenueAverage
Fee		Average
Client
Assets		RevenueAverage
Fee
Schwab money market funds$580,957 $389 0.27 %$461,091 $299 0.26 %$539,113 $1,461 0.27 %$391,864 $1,034 0.26 %
Schwab equity and bond funds, exchange-traded funds (ETFs), and collective trust funds (CTFs) 647,170 125 0.08 %486,340 98 0.08 %588,999 462 0.08 %471,832 382 0.08 %
Mutual Fund OneSource® and other no-transaction-
  fee funds
363,024 231 0.25 %289,841 188 0.26 %342,615 878 0.26 %249,131 657 0.26 %
Other third-party mutual funds and ETFs629,913 106 0.07 %572,027 97 0.07 %611,999 420 0.07 %640,689 490 0.08 %
Total mutual funds, ETFs, and CTFs (1)
$2,221,064 $851 0.15 %$1,809,299 $682 0.15 %$2,082,726 $3,221 0.15 %$1,753,516 $2,563 0.15 %
Managed investing solutions (1)
Fee-based$582,464 $557 0.38 %$465,266 $475 0.41 %$542,253 $2,129 0.39 %$458,114 $1,868 0.41 %
Non-fee-based115,712 — — 98,679 — — 111,571 — — 96,633 — — 
Total managed investing solutions
$698,176 $557 0.32 %$563,945 $475 0.33 %$653,824 $2,129 0.33 %$554,747 $1,868 0.34 %
Other balance-based fees (2)
827,930 76 0.04 %664,774 65 0.04 %776,715 286 0.04 %608,170 254 0.04 %
Other (3)
25 19 80 71 
Total asset management and administration fees$1,509 $1,241 $5,716 $4,756 
(1) Managed investing solutions, formerly referred to as “Advice solutions”, includes managed portfolios, specialized strategies, and customized investment advice such as Schwab Wealth AdvisoryTM, Schwab Managed PortfoliosTM, Managed Account Select®, Schwab Advisor Network®, Windhaven Strategies®, ThomasPartners® Strategies, Wasmer SchroederTM Strategies, Schwab Index Advantage advised retirement plan balances, Schwab Intelligent Portfolios®, Institutional Intelligent Portfolios®, Schwab Intelligent Portfolios Premium®, 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.
(2) Includes various asset-related fees, such as trust fees, 401(k) recordkeeping fees, and mutual fund clearing fees and other service fees.
(3) Includes miscellaneous service and transaction fees relating to mutual funds and ETFs that are not balance-based.
- 7 -

THE CHARLES SCHWAB CORPORATION
Growth in Client Assets and Accounts
(Unaudited)

Q4-24 % Change20242023
vs.vs.FourthThirdSecondFirstFourth
(In billions, at quarter end, except as noted)Q4-23Q3-24QuarterQuarterQuarterQuarterQuarter
Assets in client accounts
Schwab One®, certain cash equivalents, and bank deposits
(3)%7 %$358.8 $334.1 $330.7 $348.2 $368.3 
Bank deposit account balances(10)%4 %87.5 84.0 84.5 90.2 97.4 
Proprietary mutual funds (Schwab Funds® and Laudus Funds®) and CTFs
Money market funds (1)
25 %6 %596.5 562.1 533.6 515.7 476.4 
Equity and bond funds and CTFs (2)
24 %1 %232.2 228.9 214.4 206.0 186.7 
Total proprietary mutual funds and CTFs25 %5 %828.7 791.0 748.0 721.7 663.1 
Mutual Fund Marketplace® (3)
Mutual Fund OneSource® and other no-transaction-fee funds
14 %(3)%347.8 358.0 344.8 329.2 306.2 
Mutual fund clearing services20 %— 280.7 280.8 264.7 248.1 233.4 
Other third-party mutual funds8 %(2)%1,211.1 1,236.5 1,177.5 1,182.9 1,126.5 
Total Mutual Fund Marketplace10 %(2)%1,839.6 1,875.3 1,787.0 1,760.2 1,666.1 
Total mutual fund assets15 %— 2,668.3 2,666.3 2,535.0 2,481.9 2,329.2 
Exchange-traded funds
Proprietary ETFs (2)
24 %2 %395.0 385.9 349.6 342.9 319.4 
Other third-party ETFs28 %3 %1,940.6 1,888.2 1,738.6 1,676.6 1,521.7 
Total ETF assets27 %3 %2,335.6 2,274.1 2,088.2 2,019.5 1,841.1 
Equity and other securities26 %3 %3,972.6 3,839.6 3,648.8 3,467.7 3,163.5 
Fixed income securities(2)%(4)%762.3 795.4 792.0 779.0 779.7 
Margin loans outstanding34 %15 %(83.8)(73.0)(71.7)(68.1)(62.6)
Total client assets19 %2 %$10,101.3 $9,920.5 $9,407.5 $9,118.4 $8,516.6 
Client assets by business (4)
Investor Services (5)
20 %3 %$5,721.6 $5,576.7 $5,317.5 $5,108.9 $4,759.2 
Advisor Services (6)
17 %1 %4,379.7 4,343.8 4,090.0 4,009.5 3,757.4 
Total client assets19 %2 %$10,101.3 $9,920.5 $9,407.5 $9,118.4 $8,516.6 
Net growth in assets in client accounts (for the quarter ended)
Net new assets by business (4)
Investor Services (5)
64 %24 %$46.2 $37.2 $40.1 $37.6 $28.1 
Advisor Services (6)
63 %16 %62.2 53.6 34.1 50.6 38.2 
Total net new assets63 %19 %$108.4 $90.8 $74.2 $88.2 $66.3 
Net market gains72.4 422.2 214.9 513.6 625.8 
Net growth $180.8 $513.0 $289.1 $601.8 $692.1 
New brokerage accounts (in thousands, for the quarter ended)23 %15 %1,119 972 985 1,094 910 
Client accounts (in thousands)
Active brokerage accounts5 %1 %36,456 35,982 35,612 35,301 34,838 
Banking accounts9 %2 %1,998 1,954 1,931 1,885 1,838 
Workplace Plan Participant Accounts (7)
3 %— 5,399 5,388 5,363 5,277 5,221 
(1) Total client assets in purchased money market funds are located at: https://www.aboutschwab.com/investor-relations.
(2) Includes balances held on and off the Schwab platform. As of December 31, 2024, off-platform equity and bond funds, CTFs, and ETFs were $35.0 billion, $3.9 billion, and $139.0 billion, respectively.
(3) Excludes all proprietary mutual funds and ETFs.
(4) In the fourth quarter of 2024, Retirement Business Services moved from Advisor Services to Investor Services. Prior periods have been recast.
(5) Fourth quarter of 2024 includes net outflows of $5.5 billion from off-platform Schwab Bank Retail CDs and an outflow of $0.6 billion from a large international relationship. Third quarter of 2024 includes net outflows of $4.4 billion from off-platform Schwab Bank Retail CDs and an outflow of $0.1 billion from a large international relationship. Second quarter of 2024 includes net inflows of $2.7 billion from off-platform Schwab Bank Retail CDs and an inflow of $10.3 billion from a mutual fund clearing services client. First quarter of 2024 includes net outflows of $7.4 billion from off-platform Schwab Bank Retail CDs. Fourth quarter of 2023 includes net inflows of $2.4 billion from off-platform Schwab Bank Retail CDs and outflows of $5.8 billion from a large international relationship.
(6) Fourth quarter of 2024 includes an outflow of $0.3 billion from a large international relationship. Fourth quarter of 2023 includes outflows of $6.4 billion from a large international relationship.
(7) 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.

- 8 -

The Charles Schwab Corporation Monthly Activity Report For December 2024
20232024Change
DecJanFebMarAprMayJunJulAugSepOctNovDecMo.Yr.
Market Indices (at month end)
Dow Jones Industrial Average®
37,690 38,150 38,996 39,807 37,816 38,686 39,119 40,843 41,563 42,330 41,763 44,911 42,544 (5)%13 %
Nasdaq Composite®
15,011 15,164 16,092 16,379 15,658 16,735 17,733 17,599 17,714 18,189 18,095 19,218 19,311 — 29 %
Standard & Poor’s® 500
4,770 4,846 5,096 5,254 5,036 5,278 5,460 5,522 5,648 5,762 5,705 6,032 5,882 (2)%23 %
Client Assets (in billions of dollars)
Beginning Client Assets8,180.6 8,516.6 8,558.1 8,879.5 9,118.4 8,847.5 9,206.3 9,407.5 9,572.1 9,737.7 9,920.5 9,852.0 10,305.4 
Net New Assets (1)
42.1 14.8 31.7 41.7 10.0 31.0 33.2 29.0 31.5 30.3 22.7 25.5 60.2 136 %43 %
Net Market Gains (Losses)293.9 26.7 289.7 197.2 (280.9)327.8 168.0 135.6 134.1 152.5 (91.2)427.9 (264.3)
Total Client Assets (at month end)8,516.6 8,558.1 8,879.5 9,118.4 8,847.5 9,206.3 9,407.5 9,572.1 9,737.7 9,920.5 9,852.0 10,305.4 10,101.3 (2)%19 %
Core Net New Assets (1,2)
43.1 17.2 33.4 45.0 1.0 31.1 29.1 29.0 32.8 33.5 24.6 28.8 61.4 113 %42 %
Receiving Ongoing Advisory Services (at month end)
Investor Services581.4 584.1 601.8 618.5 602.2 624.0 632.9 649.1 663.7 675.1 665.6 688.9 682.0 (1)%17 %
Advisor Services
3,757.4 3,780.4 3,902.5 4,009.5 3,893.9 4,027.3 4,090.0 4,185.4 4,268.1 4,343.8 4,303.3 4,489.2 4,379.7 (2)%17 %
Client Accounts (at month end, in thousands)
Active Brokerage Accounts34,838 35,017 35,127 35,301 35,426 35,524 35,612 35,743 35,859 35,982 36,073 36,222 36,456 1 %5 %
Banking Accounts 1,838 1,856 1,871 1,885 1,901 1,916 1,931 1,937 1,940 1,954 1,967 1,980 1,998 1 %9 %
Workplace Plan Participant Accounts (3)
5,221 5,226 5,268 5,277 5,282 5,345 5,363 5,382 5,373 5,388 5,407 5,393 5,399 — 3 %
Client Activity
New Brokerage Accounts (in thousands)340 366 345 383 361 314 310 327 324 321 331 357 431 21 %27 %
Client Cash as a Percentage of Client Assets (4)
10.5 %10.5 %10.2 %10.0 %10.2 %9.9 %9.7 %9.6 %9.5 %9.5 %9.8 %9.5 %10.1 %60 bp(40) bp
Derivative Trades as a Percentage of Total Trades21.8 %21.8 %22.2 %21.9 %22.1 %21.9 %21.3 %21.2 %20.8 %21.5 %21.4 %19.7 %18.6 %(110) bp(320) bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (5)
446,305 443,694 434,822 431,456 423,532 415,950 417,150 417,379 420,191 420,203 422,327 425,789 431,177 1 %(3)%
Average Margin Balances62,309 61,368 63,600 66,425 68,827 67,614 69,730 73,206 73,326 72,755 74,105 76,932 81,507 6 %31 %
Average Bank Deposit Account Balances (6)
95,518 95,553 92,075 90,774 88,819 86,844 85,195 83,979 82,806 82,336 83,261 84,385 85,384 1 %(11)%
Mutual Fund and Exchange-Traded Fund
  Net Buys (Sells) (7,8) (in millions of dollars)
Equities7,903 8,182 7,624 10,379 3,472 5,734 3,379 10,908 5,609 5,217 7,176 13,226 14,805 
Hybrid(1,596)(501)(1,330)(439)(703)(558)(843)(1,155)(1,377)(432)(1,397)(329)124 
Bonds6,104 7,510 9,883 7,561 5,949 5,854 6,346 8,651 10,919 11,015 10,442 7,473 10,969 
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (7)
(7,406)(966)(1,348)(1,607)(4,818)(5,544)(4,254)(4,679)(4,003)(1,261)(4,905)(4,492)(4,331)
Exchange-Traded Funds (8)
19,817 16,157 17,525 19,108 13,536 16,574 13,136 23,083 19,154 17,061 21,126 24,862 30,229 
Money Market Funds7,745 11,717 10,129 9,085 (2,357)9,790 3,858 9,110 8,048 9,672 11,032 9,172 8,956 
Note: Certain supplemental details related to the information above can be found at: https://www.aboutschwab.com/financial-reports.
(1) Unless otherwise noted, differences between net new assets and core net new assets are net flows from off-platform Schwab Bank Retail CDs. Additionally, 2024 includes outflows from a large international relationship of $0.1 billion in August, $0.3 billion in October, $0.6 billion in November, and an inflow of $10.3 billion from a mutual fund clearing services client in April. 2023 also includes an outflow from a large international relationship of $0.6 billion in December.
(2) Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $10 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) 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.
(5) Represents average total interest-earning assets on the Company’s balance sheet.
(6) Represents average clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions.
(7) Represents the principal value of client mutual fund transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to Investment Managers. Excludes money market fund transactions.
(8) Represents the principal value of client ETF transactions handled by Schwab, including transactions in proprietary ETFs.

- 9 -
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 fourth 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. Beginning in the third quarter of 2023, these adjustments also include restructuring costs, which the Company began incurring in connection with its previously announced plans to streamline its operations to prepare for post-integration of Ameritrade. See Part I – Item 1 – Note 10 of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 for additional information.
Non-GAAP Adjustment or MeasureDefinitionUsefulness to Investors and Uses by Management
Acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costsSchwab 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 equityReturn 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.


- 10 -
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 December 31,Twelve Months Ended December 31,
2024202320242023
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)		$3,024 $1,840 $3,265 $1,045 $11,914 $5,942 $12,459 $5,067 
Acquisition and integration-related costs (1)
(20)20 (67)67 (117)117 (401)401 
Amortization of acquired intangible assets(130)130 (130)130 (519)519 (534)534 
Restructuring costs (2)
(27)27 (216)216 (9)9 (495)495 
Income tax effects (3)
N/A(43)N/A(91)N/A(154)N/A(338)
Adjusted total expenses (non-GAAP),
  Adjusted net income (non-GAAP)		$2,847 $1,974 $2,852 $1,367 $11,269 $6,433 $11,029 $6,159 
(1) Acquisition and integration-related costs for the three and twelve months ended December 31, 2024 primarily consist of $10 million and $54 million of compensation and benefits, $4 million and $36 million of professional services, and $6 million and $19 million of depreciation and amortization. Acquisition and integration-related costs for the three and twelve months ended December 31, 2023 primarily consist of $29 million and $187 million of compensation and benefits, $24 million and $135 million of professional services, $7 million and $28 million of occupancy and equipment, and $1 million and $27 million of other expense.
(2) Restructuring costs for the three months ended December 31, 2024 primarily consist of $24 million of other expense. Restructuring costs for the twelve months ended December 31, 2024 reflect a change in estimate of $34 million in compensation and benefits, offset by $5 million of occupancy and equipment and $37 million of other expense. Restructuring costs for the three and twelve months ended December 31, 2023 primarily consist of $16 million and $292 million of compensation and benefits, $15 million and $17 million of occupancy and equipment, and $181 million of other expense for each period.
(3) 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 December 31,Twelve Months Ended December 31,
2024202320242023
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)		$2,305 43.3 %$1,194 26.8 %$7,692 39.2 %$6,378 33.9 %
Acquisition and integration-related costs20 0.4 %67 1.5 %117 0.6 %401 2.1 %
Amortization of acquired intangible assets130 2.4 %130 2.9 %519 2.7 %534 2.9 %
Restructuring costs
27 0.5 %216 4.8 %9 — 495 2.6 %
Adjusted income before taxes on income (non-GAAP),
  Adjusted pre-tax profit margin (non-GAAP)		$2,482 46.6 %$1,607 36.0 %$8,337 42.5 %$7,808 41.5 %

Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
AmountDiluted
EPS		AmountDiluted
EPS		AmountDiluted
EPS		AmountDiluted
EPS
Net income available to common stockholders (GAAP),
  Earnings per common share — diluted (GAAP)		$1,717 $.94 $926 $.51 $5,478 $2.99 $4,649 $2.54 
Acquisition and integration-related costs20 .01 67 .04 117 .06 401 .22 
Amortization of acquired intangible assets130 .07 130 .07 519 .28 534 .29 
Restructuring costs27 .01 216 .12 9 — 495 .27 
Income tax effects(43)(.02)(91)(.06)(154)(.08)(338)(.19)
Adjusted net income available to common stockholders
  (non-GAAP), Adjusted diluted EPS (non-GAAP)		$1,851 $1.01 $1,248 $.68 $5,969 $3.25 $5,741 $3.13 

- 11 -
THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
Return on average common stockholders’ equity (GAAP)
18 %12 %15 %16 %
Average common stockholders’ equity
$38,604 $30,179 $35,475 $29,334 
Less: Average goodwill(11,951)(11,951)(11,951)(11,951)
Less: Average acquired intangible assets — net(7,808)(8,325)(8,002)(8,524)
Plus: Average deferred tax liabilities related to goodwill
  and acquired intangible assets — net		1,723 1,790 1,741 1,805 
Average tangible common equity$20,568 $11,693 $17,263 $10,664 
Adjusted net income available to common stockholders (1)
$1,851 $1,248 $5,969 $5,741 
Return on tangible common equity (non-GAAP)36 %43 %35 %54 %
(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)
December 31, 2024
CSCCSB
Tier 1 Leverage Ratio (GAAP)
9.9 %11.6 %
Tier 1 Capital
$45,186 $32,584 
Plus: AOCI adjustment(14,839)(12,938)
Adjusted Tier 1 Capital30,347 19,646 
Average assets with regulatory adjustments
458,119 280,701 
Plus: AOCI adjustment(14,831)(13,037)
Adjusted average assets with regulatory adjustments$443,288 $267,664 
Adjusted Tier 1 Leverage Ratio (non-GAAP)
6.8 %7.3 %
- 12 -
v3.24.4
Document and Entity Information
Jan. 21, 2025
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Jan. 21, 2025
Entity File Number 1-9700
Entity Registrant Name SCHWAB CHARLES CORP
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 94-3025021
Entity Address, Address Line One 3000 Schwab Way
Entity Address, City or Town Westlake
Entity Address, State or Province TX
Entity Address, Postal Zip Code 76262
City Area Code 817
Local Phone Number 859-5000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0000316709
Amendment Flag false
Common Stock [Member]  
Entity Information [Line Items]  
Title of 12(b) Security Common Stock – $.01 par value per share
Trading Symbol SCHW
Security Exchange Name NYSE
Series D Preferred Stock [Member]  
Entity Information [Line Items]  
Title of 12(b) Security Depositary Shares, each representing a 1/40th ownership interest in a share of 5.95% Non-Cumulative Preferred Stock, Series D
Trading Symbol SCHW PrD
Security Exchange Name NYSE
Series J Preferred Stock [Member]  
Entity Information [Line Items]  
Title of 12(b) Security Depositary Shares, each representing a 1/40th ownership interest in a share of 4.450% Non-Cumulative Preferred Stock, Series J
Trading Symbol SCHW PrJ
Security Exchange Name NYSE
Charles Schwab (NYSE:SCHW-J)
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