Charles Schwab : PRESS RELEASE AND TABLES (schw q1 2025 earnings release)

Published: 2025-04-17 07:39:10 ET SCHW

SCHWAB REPORTS RECORD FIRST QUARTER REVENUE

March Core Net New Assets Equal $59.1 Billion, 1Q25 Totals $137.7 Billion

1Q25 Net Revenues Up 18% Year-Over-Year to a Record $5.6 Billion

Quarterly GAAP Earnings Per Share of $.99, $1.04 Adjusted (1) - Up 41% Versus 1Q24

WESTLAKE, Texas, April 17, 2025 - The Charles Schwab Corporation reported net income for the first quarter totaling $1.9 billion, or $.99 earnings per share. Excluding $130 million of pre-tax transaction-related costs, adjusted (1) net income and earnings per share equaled $2.0 billion and $1.04, respectively.

"Investors turned to Schwab to navigate an increasingly uncertain

Client Driven

$137.7B

environment in 1Q25, entrusting us with $138 billion in core net new

assets. This 44% year-over-year increase in asset gathering was powered

1Q25 Core

Growth

by our unwavering focus on serving the needs of clients across Retail,

Net New Assets

Advisor Services, and Workplace Financial Services."

President & CEO Rick Wurster

18%

"Schwab delivered growth on all fronts during the first quarter, converting

Diversified

robust organic growth, increased trading volumes, strong Managed

1Q25 Revenue

Investing net inflows, and sustained bank lending momentum into record

Revenue Growth

Growth vs. 1Q24

net revenues totaling $5.6 billion."

President & CEO Rick Wurster

"Client transactional sweep cash equaled $407.8 billion at the end of

Balance Sheet

$11.8B

March - reflecting normal first quarter deployment activity partially offset

by client net selling following the re-emergence of market volatility. At

1Q25 Reduction in Bank

Management

the same time, we further reduced Bank Supplemental Funding to

Supplemental Funding

(2)

$38.1 billion at quarter-end - a 46% decrease versus 1Q24."

CFO Mike Verdeschi

$1.5B

"While continuing to meet the evolving needs of our growing client base,

Opportunistic

we increased capital return to stockholders during the quarter - including

Worth of Common

increasing the quarterly common dividend by 8% and repurchasing

Capital Return

Shares Repurchased

$1.5 billion worth of common stock."

CFO Mike Verdeschi

1Q25 Client and Business Highlights

- 1 -

Three Months Ended

March 31,

Financial Highlights

2025

2024

Change

Net revenues (in millions)

5,599

4,740

18%

Net income (in millions)

GAAP

1,909

1,362

40%

Adjusted

2,008

1,469

37%

Diluted earnings per common share

GAAP

.99

.68

46%

Adjusted

1.04

.74

41%

Pre-tax profit margin

GAAP

43.8%

37.9%

Adjusted

46.2%

40.9%

Return on average common

stockholders' equity (annualized)

18%

15%

Return on tangible

common equity (annualized)

35%

39%

Note: Items labeled "adjusted" are non-GAAP financial measures; further details 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.

1Q25 Financial Commentary

Spring Business Update

The company will host its Spring 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 business results 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

- 2 -

expectations. 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 37.0 million active brokerage accounts, 5.5 million workplace plan participant accounts, 2.1 million banking accounts, and $9.93 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 [email protected]

INVESTORS/ANALYSTS Jeff Edwards, 817-854-6177 [email protected]

- 3 -

THE CHARLES SCHWAB CORPORATION

Consolidated Statements of Income

(In millions, except per share amounts)

(Unaudited)

Three Months Ended

March 31,

2025

2024

Net Revenues

Interest revenue

3,757

3,941

Interest expense

(1,051)

(1,708)

Net interest revenue

2,706

2,233

Asset management and administration fees

1,530

1,348

Trading revenue

908

817

Bank deposit account fees

245

183

Other

210

159

Total net revenues

5,599

4,740

Expenses Excluding Interest

Compensation and benefits

1,672

1,538

Professional services

269

241

Occupancy and equipment

274

265

Advertising and market development

Communications

153

141

Depreciation and amortization

217

228

Amortization of acquired intangible assets

130

Regulatory fees and assessments

125

Other

244

186

Total expenses excluding interest

3,144

2,942

Income before taxes on income

2,455

1,798

Taxes on income

546

436

Net Income

1,909

1,362

Preferred stock dividends and other

113

111

Net Income Available to Common Stockholders

1,796

1,251

Weighted-Average Common Shares Outstanding:

Basic

1,817

1,825

Diluted

1,822

1,831

Earnings Per Common Shares Outstanding:

Basic

.99

.69

Diluted

.99

.68

- 4 -

THE CHARLES SCHWAB CORPORATION

Financial and Operating Highlights

(Unaudited)

(In millions, except per share amounts and as noted)

Net Revenues

Net interest revenue

Asset management and administration fees

Trading revenue

Bank deposit account fees

Other

Total net revenues

Expenses Excluding Interest

Compensation and benefits

Professional services

Occupancy and equipment

Advertising and market development

Communications

Depreciation and amortization

Amortization of acquired intangible assets

Regulatory fees and assessments

Other

Total expenses excluding interest

Income before taxes on income

Taxes on income

Net Income

Preferred stock dividends and other

Net Income Available to Common Stockholders

Earnings per common share:

Basic

Diluted

Dividends declared per common share

Weighted-average common shares outstanding:

Basic

Diluted

Performance Measures

Pre-tax profit margin

Return on average common stockholders' equity (annualized) (1)

Financial Condition (at quarter end, in billions) Cash and cash equivalents

Cash and investments segregated

Receivables from brokers, dealers, and clearing organizations Receivables from brokerage clients - net

Available for sale securities Held to maturity securities Bank loans - net

Total assets Bank deposits

Payables to brokers, dealers, and clearing organizations (2) Payables to brokerage clients

Accrued expenses and other liabilities (2) Other short-term borrowings

Federal Home Loan Bank borrowings Long-term debt

Total liabilities Stockholders' equity

Total liabilities and stockholders' equity

Other

Full-time equivalent employees (at quarter end, in thousands)

Capital expenditures - purchases of equipment, office facilities, and property, net (in millions)

Expenses excluding interest as a percentage of average client assets (annualized)

Clients' Daily Average Trades (DATs) (in thousands)

Number of Trading Days

Revenue Per Trade (3)

Q1-25 % change

2025

2024

vs.

First

Fourth

Third

Second

First

Q1-24

Q4-24

Quarter

21%

2,706

2,531

2,222

2,158

2,233

14%

1,530

1,509

1,476

1,383

1,348

11%

908

873

797

777

817

34%

245

241

152

153

183

32%

20%

210

175

200

219

159

18%

5,599

5,329

4,847

4,690

4,740

1,672

1,533

1,522

1,450

1,538

12%

(9)%

269

297

256

259

241

(1)%

274

276

271

248

265

(5)%

101

107

17%

153

131

147

172

141

(5)%

(3)%

217

224

231

233

228

130

129

130

(29)%

125

31%

244

243

259

249

186

3,144

3,024

3,005

2,943

2,942

37%

2,455

2,305

1,842

1,747

1,798

25%

17%

546

465

434

415

436

40%

1,909

1,840

1,408

1,332

1,362

(8)%

113

123

109

121

111

44%

1,796

1,717

1,299

1,211

1,251

43%

.99

.94

.71

.66

.69

46%

.99

.94

.71

.66

.68

.27

.25

(1)%

1,817

1,831

1,829

1,828

1,825

(1)%

1,822

1,836

1,834

1,831

43.8%

43.3%

38.0%

37.2%

37.9%

18%

14%

15%

10%

(17)%

35.0

42.1

34.9

25.4

31.8

48%

38.4

38.2

33.7

21.7

25.9

(29)%

21%

2.9

2.4

3.4

3.2

4.1

19%

(1)%

84.4

85.4

74.0

72.8

71.2

(26)%

(10)%

74.8

83.0

90.0

93.6

101.1

(8)%

(2)%

143.8

146.5

149.9

153.2

156.4

15%

47.1

45.2

43.3

42.2

40.8

(1)%

(4)%

462.9

479.8

466.1

449.7

468.8

(9)%

(5)%

246.2

259.1

246.5

252.4

269.5

134%

18%

15.7

13.3

16.4

5.9

6.7

20%

(1)%

100.6

101.6

89.2

80.0

84.0

(11)%

11.0

12.3

11.2

10.6

10.9

(18)%

15%

6.9

6.0

10.6

10.0

8.4

(52)%

(31)%

11.5

16.7

22.6

24.4

24.0

(6)%

(4)%

21.5

22.4

22.9

(3)%

(4)%

413.4

431.5

418.8

405.7

426.4

17%

49.5

48.4

47.2

44.0

42.4

(1)%

(4)%

462.9

479.8

466.1

449.7

468.8

(2)%

32.1

32.3

32.6

28%

(40)%

156

258

135

122

0.12%

0.13%

0.14%

24%

17%

7,391

6,312

5,697

5,486

5,958

(2)%

(5)%

60.0

63.0

63.5

63.0

61.0

(9)%

(7)%

2.05

2.20

2.25

- 5 -

THE CHARLES SCHWAB CORPORATION

Net Interest Revenue Information

(In millions, except ratios or as noted)

(Unaudited)

Three Months Ended

March 31,

2025

2024

Average

Interest

Average

Interest

Average

Revenue/

Yield/

Revenue/

Yield/

Balance

Expense

Rate

Balance

Expense

Rate

Interest-earning assets

Cash and cash equivalents

30,483

328

4.31%

33,791

454

5.31%

Cash and investments segregated

38,611

412

4.27%

29,297

388

5.24%

Receivables from brokerage clients

83,137

1,382

6.65%

63,804

1,260

7.81%

Available for sale securities (1)

84,590

433

2.05%

111,867

594

2.12%

Held to maturity securities (1)

144,401

622

1.72%

157,410

690

1.75%

Bank loans

46,043

493

4.32%

40,529

440

4.36%

Total interest-earning assets

427,265

3,670

3.44%

436,698

3,826

3.48%

Securities lending revenue

Other interest revenue

Total interest-earning assets

427,265

3,757

3.52%

436,698

3,941

3.59%

Funding sources

Bank deposits

245,719

436

0.72%

274,368

921

1.35%

Payables to brokers, dealers, and clearing organizations (2)

14,177

137

3.88%

5,513

3.96%

Payables to brokerage clients

90,173

0.23%

68,343

0.43%

Other short-term borrowings

6,695

4.96%

7,385

103

5.61%

Federal Home Loan Bank borrowings

10,725

133

4.94%

24,857

330

5.27%

Long-term debt

22,281

212

3.81%

25,000

224

3.59%

Total interest-bearing liabilities (2)

389,770

1,051

1.09%

405,466

1,706

1.69%

Non-interest-bearing funding sources (2)

37,495

31,232

Other interest expense

Total funding sources

427,265

1,051

0.99%

436,698

1,708

1.57%

Net interest revenue

2,706

2.53%

2,233

2.02%

- 6 -

THE CHARLES SCHWAB CORPORATION

Asset Management and Administration Fees Information

(In millions, except ratios or as noted)

(Unaudited)

Three Months Ended

March 31,

2025

2024

Average

Client

Revenue

Client

Revenue

Assets

Fee

Assets

Fee

Schwab money market funds

621,474

418

0.27%

499,887

336

0.27%

Schwab equity and bond funds, exchange-traded funds (ETFs), and

658,588

122

0.08%

539,661

107

0.08%

collective trust funds (CTFs)

Mutual Fund OneSource® and other no-transaction-

359,696

222

0.25%

314,576

209

0.27%

fee funds

Other third-party mutual funds and ETFs

623,647

103

0.07%

605,625

106

0.07%

Total mutual funds, ETFs, and CTFs (1)

2,263,405

865

0.15%

1,959,749

758

0.16%

Managed investing solutions (1)

Fee-based

590,483

569

0.39%

506,133

503

0.40%

Non-fee-based

120,442

106,032

Total managed investing solutions

710,925

569

0.32%

612,165

503

0.33%

Other balance-based fees (2)

841,555

0.04%

719,447

0.04%

Other (3)

Total asset management and administration fees

1,530

1,348

- 7 -

THE CHARLES SCHWAB CORPORATION

Growth in Client Assets and Accounts

(Unaudited)

(In billions, at quarter end, except as noted)

Assets in client accounts

Schwab One®, certain cash equivalents, and bank deposits Bank deposit account balances

Proprietary mutual funds (Schwab Funds® and Laudus Funds®) and CTFs Money market funds (1)

Equity and bond funds and CTFs (2)

Total proprietary mutual funds and CTFs

Mutual Fund Marketplace® (3)

Mutual Fund OneSource® and other no-transaction-fee funds Mutual fund clearing services

Other third-party mutual funds

Total Mutual Fund Marketplace

Total mutual fund assets

Exchange-traded funds

Proprietary ETFs (2)

Other third-party ETFs

Total ETF assets

Equity and other securities

Fixed income securities

Margin loans outstanding

Total client assets

Client assets by business (4)

Investor Services (5)

Advisor Services (6)

Total client assets

Net growth in assets in client accounts (for the quarter ended) Net new assets by business (4)

Investor Services (5)

Advisor Services (6)

Total net new assets

Net market gains (losses)

Net growth (decline)

New brokerage accounts (in thousands, for the quarter ended) Client accounts (in thousands)

Active brokerage accounts

Banking accounts

Workplace Plan Participant Accounts (7)

Q1-25 % Change

2025

2024

vs.

First

Fourth

Third

Second

First

Q1-24

Q4-24

Quarter

(1)%

(4)%

345.2

358.8

334.1

330.7

348.2

(7)%

(4)%

83.7

87.5

84.0

84.5

90.2

24%

641.5

596.5

562.1

533.6

515.7

10%

(2)%

227.0

232.2

228.9

214.4

206.0

20%

868.5

828.7

791.0

748.0

721.7

(2)%

340.3

347.8

358.0

344.8

329.2

13%

280.6

280.7

280.8

264.7

248.1

(1)%

1,195.4

1,211.1

1,236.5

1,177.5

1,182.9

(1)%

1,816.3

1,839.6

1,875.3

1,787.0

1,760.2

2,684.8

2,668.3

2,666.3

2,535.0

2,481.9

16%

398.2

395.0

385.9

349.6

342.9

17%

1,960.1

1,940.6

1,888.2

1,738.6

1,676.6

17%

2,358.3

2,335.6

2,274.1

2,088.2

2,019.5

(5)%

3,765.5

3,972.6

3,839.6

3,648.8

3,467.7

775.8

762.3

795.4

792.0

779.0

23%

(83.6)

(83.8)

(73.0)

(71.7)

(68.1)

(2)%

9,929.7

10,101.3

9,920.5

9,407.5

9,118.4

(3)%

5,557.4

5,721.6

5,576.7

5,317.5

5,108.9

4,372.3

4,379.7

4,343.8

4,090.0

4,009.5

(2)%

9,929.7

10,101.3

9,920.5

9,407.5

9,118.4

85%

50%

69.5

46.2

37.2

40.1

37.6

24%

62.9

62.2

53.6

34.1

50.6

50%

22%

132.4

108.4

90.8

74.2

88.2

(304.0)

72.4

422.2

214.9

513.6

(171.6)

180.8

513.0

289.1

601.8

1,183

1,119

972

985

1,094

37,011

36,456

35,982

35,612

35,301

2,050

1,998

1,954

1,931

1,885

5,495

5,399

5,388

5,363

5,277

- 8 -

The Charles Schwab Corporation Monthly Activity Report For March 2025

2024

2025

Change

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Mo.

Yr.

Market Indices (at month end)

Dow Jones Industrial Average®

39,807

37,816

38,686

39,119

40,843

41,563

42,330

41,763

44,911

42,544

44,545

43,841

42,002

(4)%

Nasdaq Composite®

16,379

15,658

16,735

17,733

17,599

17,714

18,189

18,095

19,218

19,311

19,627

18,847

17,299

(8)%

Standard & Poor's® 500

5,254

5,036

5,278

5,460

5,522

5,648

5,762

5,705

6,032

5,882

6,041

5,955

5,612

(6)%

Client Assets (in billions of dollars)

Beginning Client Assets

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

10,333.1

10,280.2

Net New Assets (1)

41.7

10.0

31.0

33.2

29.0

31.5

30.3

22.7

25.5

60.2

30.5

46.6

55.3

19%

33%

Net Market Gains (Losses)

197.2

(280.9)

327.8

168.0

135.6

134.1

152.5

(91.2)

427.9

(264.3)

201.3

(99.5)

(405.8)

Total Client Assets (at month end)

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

10,333.1

10,280.2

9,929.7

(3)%

Core Net New Assets (1,2)

23%

31%

45.0

1.0

31.1

29.1

29.0

32.8

33.5

24.6

28.8

61.4

30.6

48.0

59.1

Receiving Ongoing Advisory Services (at month end)

Investor Services

618.5

602.2

624.0

632.9

649.1

663.7

675.1

665.6

688.9

682.0

698.7

703.5

688.8

(2)%

11%

Advisor Services

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

4,496.6

4,493.2

4,372.3

(3)%

Client Accounts (at month end, in thousands)

Active Brokerage Accounts

35,301

35,426

35,524

35,612

35,743

35,859

35,982

36,073

36,222

36,456

36,709

36,861

37,011

Banking Accounts

1,885

1,901

1,916

1,931

1,937

1,940

1,954

1,967

1,980

1,998

2,019

2,033

2,050

Workplace Plan Participant Accounts (3)

5,277

5,282

5,345

5,363

5,382

5,373

5,388

5,407

5,393

5,399

5,450

5,464

5,495

Client Activity

New Brokerage Accounts (in thousands)

383

361

314

310

327

324

321

331

357

431

433

362

388

Client Cash as a Percentage of Client Assets (4)

10.0%

10.2%

9.9%

9.7%

9.6%

9.5%

9.8%

9.5%

10.1%

9.8%

10.0%

10.6%

60 bp

Derivative Trades as a Percentage of Total Trades

21.9%

22.1%

21.9%

21.3%

21.2%

20.8%

21.5%

21.4%

19.7%

18.6%

19.3%

19.9%

19.5%

(40) bp

(240) bp

Selected Average Balances (in millions of dollars)

Average Interest-Earning Assets (5)

431,456

423,532

415,950

417,150

417,379

420,191

420,203

422,327

425,789

431,177

431,523

424,805

425,228

(1)%

Average Margin Balances

66,425

68,827

67,614

69,730

73,206

73,326

72,755

74,105

76,932

81,507

82,551

84,233

82,725

(2)%

25%

Average Bank Deposit Account Balances (6)

90,774

88,819

86,844

85,195

83,979

82,806

82,336

83,261

84,385

85,384

84,790

83,089

84,302

(7)%

Mutual Funds and Exchange-Traded Funds

Net Buys (Sells) (7,8) (in millions of dollars)

Equities

10,379

3,472

5,734

3,379

10,908

5,609

5,217

7,176

13,226

14,805

10,050

4,987

(1,221)

Hybrid

(439)

(703)

(558)

(843)

(1,155)

(1,377)

(432)

(1,397)

(329)

124

(1,324)

(464)

(603)

Bonds

7,561

5,949

5,854

6,346

8,651

10,919

11,015

10,442

7,473

10,969

8,747

12,162

11,438

Net Buy (Sell) Activity (in millions of dollars)

Mutual Funds (7)

(1,607)

(4,818)

(5,544)

(4,254)

(4,679)

(4,003)

(1,261)

(4,905)

(4,492)

(4,331)

(6,785)

(3,971)

(8,537)

Exchange-Traded Funds (8)

19,108

13,536

16,574

13,136

23,083

19,154

17,061

21,126

24,862

30,229

24,258

20,656

18,151

Money Market Funds

9,085

(2,357)

9,790

3,858

9,110

8,048

9,672

11,032

9,172

8,956

11,584

12,306

14,586

Note: Certain supplemental details related to the information above can be found at: https://www.aboutschwab.com/financial-reports.

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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 first 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.

Non-GAAP Adjustment

Definition

Usefulness to Investors and Uses by

or Measure

Management

Acquisition and

Schwab adjusts certain GAAP financial measures

We exclude acquisition and integration-related

integration-related costs,

to exclude the impact of acquisition and

costs, amortization of acquired intangible assets,

amortization of acquired

integration-related costs incurred as a result of the

and restructuring costs for the purpose of

intangible assets, and

Company's acquisitions, amortization of acquired

calculating certain non-GAAP measures because

restructuring costs

intangible assets, restructuring costs, and, where

we believe doing so provides additional

applicable, the income tax effect of these expenses.

transparency of Schwab's ongoing operations, and

Adjustments made to exclude amortization of

is useful in both evaluating the operating

performance of the business and facilitating

acquired intangible assets are reflective of all

comparison of results with prior and future

acquired intangible assets, which were recorded as

periods.

part of purchase accounting. These acquired

Costs related to acquisition and integration or

intangible assets contribute to the Company's

revenue generation. Amortization of acquired

restructuring fluctuate based on the timing of

intangible assets will continue in future periods

acquisitions, integration and restructuring

over their remaining useful lives.

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

Return on tangible common equity represents

Acquisitions typically result in the recognition of

common equity

annualized adjusted net income available to

significant amounts of goodwill and acquired

common stockholders as a percentage of average

intangible assets. We believe return on tangible

tangible common equity. Tangible common equity

common equity may be useful to investors as a

represents common equity less goodwill, acquired

supplemental measure to facilitate assessing

intangible assets - net, and related deferred tax

capital efficiency and returns relative to the

liabilities.

composition of Schwab's balance sheet.

Adjusted Tier 1 Leverage

Adjusted Tier 1 Leverage Ratio represents the Tier

Inclusion of the impacts of AOCI in the

Ratio

1 Leverage Ratio as prescribed by bank regulatory

Company's Tier 1 Leverage Ratio provides

guidance for the consolidated company and for

additional information regarding the Company's

Charles Schwab Bank, SSB (CSB), adjusted to

current capital position. We believe Adjusted Tier

reflect the inclusion of accumulated other

1 Leverage Ratio may be useful to investors as a

comprehensive income (AOCI) in the ratio.

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 -

Disclaimer

The Charles Schwab Corporation published this content on April 17, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 17, 2025 at 11:38 UTC.