Total Client Assets Reached A Record $9.4 Trillion, Up 17% Year-Over-Year

Core Net New Assets Rose 17% to $61.2 Billion, Highlighting Continued Momentum

The Charles Schwab Corporation reported net income for the second quarter totaling $1.3 billion, or $.66 diluted earnings per common share. Excluding $175 million of pre-tax transaction-related and restructuring costs, adjusted ⁽¹⁾ net income and diluted common earnings per share equaled $1.5 billion and $.73, respectively.

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Client Driven Growth	+17% Core Net New Asset Growth Versus 2Q23	"Schwab's ‘no trade-offs' value proposition continued to resonate with investors, as new brokerage accounts opened this year grew to over 2 million and second quarter core asset gathering equaled $61.2 billion – a year-over-year increase of 17%." Co-Chairman and CEO Walt Bettinger




Modern Wealth Solutions	+56% YTD Inflows to Managed Investing Solutions Versus 2023	"Client interest in our broad array of wealth solutions remained strong through June. Year-to-date enrollments are up ~30% versus the prior year period and net flows into Managed Investing solutions reached $25 billion – an increase of 56% versus the first 6 months of 2023." Co-Chairman and CEO Walt Bettinger




Diversified Operating Model	41.0% 2Q24 Adjusted Pre-Tax Profit Margin ⁽¹⁾	"Record asset management and administration fees, along with our balanced approach to expense management, helped Schwab produce a second quarter pre-tax margin of 37.2% – 41.0% adjusted⁽¹⁾." CFO Peter Crawford




Balance Sheet Management	9.4% Tier 1 Leverage Ratio 5.9% Adj. Tier 1 Leverage Ratio ⁽¹⁾	"Similar to prior years, our strong capital levels and all-weather model enabled us to successfully complete the 2024 Federal Reserve stress test, with Schwab notching the highest post-stress ratios among all major banks." CFO Peter Crawford

2Q24 Client and Business Highlights

Sustained equity market strength and organic asset gathering pushed total client assets to a record $9.41 trillion
Active brokerage accounts increased 4% year-over-year to 35.6 million
Despite expected integration-related attrition, core net new assets grew 17% versus the prior year to $61.2 billion
Client assets receiving ongoing advisory services are up 16% year-over-year, including year-to-date net flow increases into Schwab Wealth Advisory™ and Wasmer Schroeder™ Strategies of 40% and 53%, respectively
Margin balances totaled $71.7 billion at quarter-end, up 15% since the end of 2023
Second quarter trading activity remained robust versus 2023 levels as client engagement in the markets persisted
Strong year-to-date client net buying of mutual and exchange-traded funds totaled $77 billion – the 2nd highest first half ever
Schwab ranked #1 for mobile app customer experience by Corporate Insight for the second year in a row ⁽²⁾

	Three Months Ended June 30,						%		Six Months Ended June 30,						%
Financial Highlights ⁽¹⁾	2024			2023			Change		2024			2023			Change

Net revenues (in millions)	$	4,690		$	4,656		1	%	$	9,430		$	9,772		(3	)%
Net income (in millions)
GAAP	$	1,332		$	1,294		3	%	$	2,694		$	2,897		(7	)%
Adjusted ⁽¹⁾	$	1,465		$	1,494		(2	)%	$	2,934		$	3,274		(10	)%
Diluted earnings per common share
GAAP	$	.66		$	.64		3	%	$	1.34		$	1.48		(9	)%
Adjusted ⁽¹⁾	$	.73		$	.75		(3	)%	$	1.47		$	1.68		(13	)%
Pre-tax profit margin
GAAP		37.2	%		36.3	%				37.6	%		38.9	%
Adjusted ⁽¹⁾		41.0	%		42.0	%				40.9	%		44.0	%
Return on average common stockholders' equity (annualized)		14	%		17	%				15	%		20	%
Return on tangible common equity (annualized) ⁽¹⁾		34	%		62	%				36	%		71	%

Note: All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding.

2Q24 Financial Commentary

Total net revenue increased by 1% year-over-year led by sustained market strength
Net interest margin expanded to 2.03%, up 1 basis point sequentially
Client transactional sweep cash balances ended June at $374.8 billion, reflecting clients' April tax disbursements, slowing client cash realignment activity, and continued net securities purchases by clients
Supplemental funding ⁽³⁾ finished the second quarter at $73.7 billion, up from the first quarter as we redirected some client cash from the bank to the broker-dealer to support increased margin lending
Asset management and administration fees totaled $1.4 billion, a new quarterly record
GAAP expenses declined by 1% versus the prior year period and included $43 million in accruals in connection with an industry-wide regulatory review of off-channel communications
Second quarter acquisition and integration-related costs, amortization of acquired intangibles, and restructuring costs totaled $175 million, down $89 million from 2Q23. Exclusive of these items, adjusted total expenses ⁽¹⁾ grew by 2%
Charles Schwab Bank, SSB (CSB) capital ratios continued to build, with preliminary Tier 1 Leverage and adjusted Tier 1 Leverage ⁽¹⁾ reaching 10.9% and 6.2%, respectively

⁽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⁾		Charles Schwab leads in mobile in Corporate Insight's 2024 Brokerage Experience Benchmarks (https://corporateinsight.com/the-2024-brokerage-experience-benchmarks-find-hybrids-still-offer-best-experiences/), which evaluate the individual investor experience offered by 20 leading brokerage websites and mobile apps. This research was independently conducted by Corporate Benchmarks' analytical frameworks that are built on over 25 years of research and 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. Schwab paid a licensing fee to Corporate Insight for use of the award and logos.
⁽³⁾		Supplemental funding includes repurchase agreements, Schwab Bank Certificates of Deposit (CDs), and Federal Home Loan Bank balances.

Summer Business Update

The company will host its Summer 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 value proposition and success with investors, Ameritrade integration-related attrition, expense management and capital levels. 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. 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 35.6 million active brokerage accounts, 5.4 million workplace plan participant accounts, 1.9 million banking accounts, and $9.41 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.

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Net Revenues
Interest revenue	$	3,817		$	4,104		$	7,758		$	8,120
Interest expense		(1,659	)		(1,814	)		(3,367	)		(3,060	)
Net interest revenue		2,158			2,290			4,391			5,060
Asset management and administration fees		1,383			1,173			2,731			2,291
Trading revenue		777			803			1,594			1,695
Bank deposit account fees		153			175			336			326
Other		219			215			378			400
Total net revenues		4,690			4,656			9,430			9,772
Expenses Excluding Interest
Compensation and benefits		1,450			1,498			2,988			3,136
Professional services		259			272			500			530
Occupancy and equipment		248			319			513			618
Advertising and market development		107			103			195			191
Communications		172			188			313			334
Depreciation and amortization		233			191			461			368
Amortization of acquired intangible assets		129			134			259			269
Regulatory fees and assessments		96			80			221			163
Other		249			180			435			362
Total expenses excluding interest		2,943			2,965			5,885			5,971
Income before taxes on income		1,747			1,691			3,545			3,801
Taxes on income		415			397			851			904
Net Income		1,332			1,294			2,694			2,897
Preferred stock dividends and other		121			121			232			191
Net Income Available to Common Stockholders	$	1,211		$	1,173		$	2,462		$	2,706
Weighted-Average Common Shares Outstanding:
Basic		1,828			1,820			1,827			1,827
Diluted		1,834			1,825			1,832			1,834
Earnings Per Common Shares Outstanding ⁽¹⁾:
Basic	$	.66		$	.64		$	1.35		$	1.48
Diluted	$	.66		$	.64		$	1.34		$	1.48

⁽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.

THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)

	Q2-24 % change					2024						2023
(In millions, except per share amounts and as noted)		vs. Q2-23		vs. Q1-24		Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Net Revenues
Net interest revenue		(6	)%	(3	)%	$	2,158		$	2,233		$	2,130		$	2,237		$	2,290
Asset management and administration fees		18	%	3	%		1,383			1,348			1,241			1,224			1,173
Trading revenue		(3	)%	(5	)%		777			817			767			768			803
Bank deposit account fees		(13	)%	(16	)%		153			183			174			205			175
Other		2	%	38	%		219			159			147			172			215
Total net revenues		1	%	(1	)%		4,690			4,740			4,459			4,606			4,656
Expenses Excluding Interest
Compensation and benefits ⁽¹⁾		(3	)%	(6	)%		1,450			1,538			1,409			1,770			1,498
Professional services		(5	)%	7	%		259			241			253			275			272
Occupancy and equipment		(22	)%	(6	)%		248			265			331			305			319
Advertising and market development		4	%	22	%		107			88			104			102			103
Communications		(9	)%	22	%		172			141			144			151			188
Depreciation and amortization		22	%	2	%		233			228			238			198			191
Amortization of acquired intangible assets		(4	)%	(1	)%		129			130			130			135			134
Regulatory fees and assessments		20	%	(23	)%		96			125			270			114			80
Other ⁽²⁾		38	%	34	%		249			186			386			173			180
Total expenses excluding interest		(1	)%	—			2,943			2,942			3,265			3,223			2,965
Income before taxes on income		3	%	(3	)%		1,747			1,798			1,194			1,383			1,691
Taxes on income		5	%	(5	)%		415			436			149			258			397
Net Income		3	%	(2	)%		1,332			1,362			1,045			1,125			1,294
Preferred stock dividends and other		—		9	%		121			111			119			108			121
Net Income Available to Common Stockholders		3	%	(3	)%	$	1,211		$	1,251		$	926		$	1,017		$	1,173
Earnings per common share ⁽³⁾:
Basic		3	%	(4	)%	$	.66		$	.69		$	.51		$	.56		$	.64
Diluted		3	%	(3	)%	$	.66		$	.68		$	.51		$	.56		$	.64
Dividends declared per common share		—		—		$	.25		$	.25		$	.25		$	.25		$	.25
Weighted-average common shares outstanding:
Basic		—		—			1,828			1,825			1,823			1,821			1,820
Diluted		—		—			1,834			1,831			1,828			1,827			1,825
Performance Measures
Pre-tax profit margin							37.2	%		37.9	%		26.8	%		30.0	%		36.3	%
Return on average common stockholders' equity (annualized) ⁽⁴⁾							14	%		15	%		12	%		14	%		17	%
Financial Condition (at quarter end, in billions)
Cash and cash equivalents		(47	)%	(20	)%	$	25.4		$	31.8		$	43.3		$	33.3		$	47.7
Cash and investments segregated		(14	)%	(16	)%		21.7			25.9			31.8			18.6			25.1
Receivables from brokerage clients — net		12	%	2	%		72.8			71.2			68.7			69.1			65.2
Available for sale securities		(26	)%	(7	)%		93.6			101.1			107.6			110.3			125.8
Held to maturity securities		(8	)%	(2	)%		153.2			156.4			159.5			162.5			166.3
Bank loans — net		5	%	3	%		42.2			40.8			40.4			40.3			40.1
Total assets		(12	)%	(4	)%		449.7			468.8			493.2			475.2			511.5
Bank deposits		(17	)%	(6	)%		252.4			269.5			290.0			284.4			304.4
Payables to brokerage clients		(6	)%	(5	)%		80.0			84.0			84.8			72.8			84.8
Other short-term borrowings		28	%	19	%		10.0			8.4			6.6			7.6			7.8
Federal Home Loan Bank borrowings		(40	)%	2	%		24.4			24.0			26.4			31.8			41.0
Long-term debt		—		(2	)%		22.4			22.9			26.1			24.8			22.5
Stockholders' equity		19	%	4	%		44.0			42.4			41.0			37.8			37.1
Other
Full-time equivalent employees (at quarter end, in thousands)		(12	)%	(1	)%		32.3			32.6			33.0			35.9			36.6
Capital expenditures — purchases of equipment, office facilities, and property, net (in millions)		(45	)%	(25	)%	$	92		$	122		$	199		$	250		$	168
Expenses excluding interest as a percentage of average client assets (annualized)							0.13	%		0.14	%		0.16	%		0.16	%		0.15	%
Clients' Daily Average Trades (DATs) (in thousands)		4	%	(8	)%		5,486			5,958			5,192			5,218			5,272
Number of Trading Days		2	%	3	%		63.0			61.0			62.5			62.5			62.0
Revenue Per Trade ⁽⁵⁾		(9	)%	—		$	2.25		$	2.25		$	2.36		$	2.35		$	2.46

⁽¹⁾		Fourth quarter of 2023 includes $16 million in restructuring costs. Third quarter of 2023 includes $276 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⁾		Revenue per trade is calculated as trading revenue divided by DATs multiplied by the number of trading days.

THE CHARLES SCHWAB CORPORATION
Net Interest Revenue Information
(In millions, except ratios or as noted)
(Unaudited)

	Three Months Ended June 30,													Six Months Ended June 30,
	2024						2023							2024						2023
	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	$	28,839	$	382	5.24	%	$	44,683	$	547		4.84	%	$	31,394	$	836	5.26	%	$	40,891	$	960	4.67	%
Cash and investments segregated		21,493		281	5.17	%		27,399		324		4.68	%		25,503		669	5.19	%		33,699		756	4.46	%
Receivables from brokerage clients		68,715		1,351	7.78	%		60,709		1,167		7.60	%		66,259		2,611	7.80	%		60,626		2,251	7.39	%
Available for sale securities ⁽¹⁾		104,045		555	2.13	%		145,032		791		2.18	%		107,956		1,149	2.12	%		150,382		1,616	2.15	%
Held to maturity securities		154,314		658	1.70	%		167,499		720		1.72	%		155,862		1,348	1.73	%		169,184		1,466	1.73	%
Bank loans		41,562		460	4.44	%		40,124		410		4.09	%		41,046		900	4.40	%		40,185		801	4.00	%
Total interest-earning assets		418,968		3,687	3.50	%		485,446		3,959		3.24	%		428,020		7,513	3.49	%		494,967		7,850	3.16	%
Securities lending revenue				95						124							171						236
Other interest revenue				35						21							74						34
Total interest-earning assets	$	418,968	$	3,817	3.62	%	$	485,446	$	4,104		3.36	%	$	428,020	$	7,758	3.60	%	$	494,967	$	8,120	3.27	%
Funding sources
Bank deposits	$	258,119	$	840	1.31	%	$	312,543	$	863		1.11	%	$	266,243	$	1,761	1.33	%	$	327,739	$	1,481	0.91	%
Payables to brokerage clients		67,680		77	0.45	%		64,892		64		0.40	%		68,011		150	0.44	%		70,997		139	0.40	%
Other short-term borrowings		9,268		129	5.59	%		7,622		97		5.08	%		8,327		232	5.60	%		7,272		183	5.06	%
Federal Home Loan Bank borrowings		25,582		348	5.42	%		46,813		606		5.13	%		25,220		678	5.35	%		35,697		910	5.07	%
Long-term debt		22,460		208	3.70	%		21,237		157		2.95	%		23,730		432	3.64	%		20,766		296	2.85	%
Total interest-bearing liabilities		383,109		1,602	1.68	%		453,107		1,787		1.57	%		391,531		3,253	1.66	%		462,471		3,009	1.31	%
Non-interest-bearing funding sources		35,859						32,339							36,489						32,496
Securities lending expense				57						28							112						50
Other interest expense				—						(1	)						2						1
Total funding sources	$	418,968	$	1,659	1.59	%	$	485,446	$	1,814		1.49	%	$	428,020	$	3,367	1.57	%	$	494,967	$	3,060	1.24	%
Net interest revenue			$	2,158	2.03	%			$	2,290		1.87	%			$	4,391	2.03	%			$	5,060	2.03	%

⁽¹⁾		Amounts have been calculated based on amortized cost.

THE CHARLES SCHWAB CORPORATION

Asset Management and Administration Fees Information

(In millions, except ratios or as noted)

(Unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2024

2023

2024

2023

Average

Client

Assets

Revenue

Average

Fee

Average

Client

Assets

Revenue

Average

Fee

Average

Client

Assets

Revenue

Average

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Average

Client

Assets

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Schwab money market funds