Schwab's Third-Quarter Net Income Rises 23% To $2.9 Billion On Record $190.4 Billion In Core Net New Assets
Revenue rose 17% to $7.2 billion, and bank loans grew 35% from a year earlier, the company said.
Charles Schwab reported third-quarter net income of $2.9 billion, or $1.62 per share on a standard-accounting basis, in an 8-K filed Thursday. Adjusted earnings were $1.69 per share, up 29% from a year earlier, and clients brought in a record $190.4 billion in core net new assets.
What the results show
Net revenues reached a record $7.2 billion, up 17%. Net interest revenue rose 14% to $3.5 billion, asset management and administration fees rose 14% to $1.9 billion, and trading revenue rose 16% to $1.2 billion, according to the company's press release.
GAAP net income rose 23% from $2.358 billion a year earlier; adjusted net income was $3.0 billion after excluding $151 million of pre-tax transaction-related costs. The adjusted pre-tax profit margin was 54.8%, versus 51.3% a year earlier.
Core net new assets, up 38% from the third quarter of 2025, equaled an annualized growth rate of 5.8%. Clients opened 1.2 million new brokerage accounts, bringing total client accounts to 48.6 million, and total client assets rose 15% to $13.33 trillion.
CEO Rick Wurster said clients "entrusted Schwab with $190.4 billion in core net new assets."
Lending and trading activity
Bank loan balances reached $72.3 billion at September month-end, up 35% year over year. Margin loans rose 14% from the prior quarter to $187.9 billion, including $60.7 billion tied to long/short strategies. Pledged Asset Line balances grew to $37.3 billion, up 59%.
Daily average trades reached 10.7 million, up 44% from the third quarter of 2025. The net interest margin widened to 3.04% from the prior quarter.
Expenses rose 9% year over year. Schwab repurchased 4.7 million shares for $0.5 billion, and its preliminary consolidated Tier 1 leverage ratio was 8.9%.
What to watch
Schwab hosted its Fall Business Update for institutional investors Thursday morning, per the release. Shares closed at $94.16 on Thursday, and the filing was accepted at 4:18 p.m. ET, after the close.
The release also lists a new AI assistant called Charley and a partnership with Anthropic to bring Claude for Financial Advisors to independent advisors Schwab serves.
Sources
- 8-K Filing — SCHWAB CHARLES CORP (SCHW) — SEC EDGAR
- Exhibit a3q26exhibit991.htm — SCHWAB CHARLES CORP 8-K exhibit — SEC EDGAR
- Schwab earnings beat estimates despite revenue miss — Yahoo Finance
- Charles Schwab Profits Climb On New Assets, More Lending — The Wall Street Journal
- Schwab (SCHW) Q3 2026 Earnings Call Transcript - The Globe and Mail — theglobeandmail.com
- Charles Schwab reported record revenue in Q3 2026 earnings — qz.com
- Can Robust Trading, Higher NIR Support Schwab's Q3 Earnings? — Yahoo Finance
