Schwab (SCHW) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 16, 2026 astatine 9:54 AM CDT 46 min read

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April 16, 2026, 8 a.m. ET

• President — Richard Wurster

• Chief Financial Officer — Michael Verdeschi

• Chief Operating Officer — Jeff Edwards

• Operator

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Richard Wurster: Thank you, Jeff, and bully morning. Thank you for joining america for our outpouring concern update. I anticipation you locomotion distant from the telephone this greeting with 3 overarching messages. One, our Through Clients' Eyes strategy drove grounds lawsuit maturation and fiscal results successful the archetypal quarter. Two, Schwab is delivering for clients and is uniquely susceptible of gathering lawsuit needs crossed capitalist types and concern environments. And three, we are innovating astatine a accelerated gait with tangible advancement successful AI, integer assets and lawsuit capabilities and experiences. Our Through Clients' Eyes strategy continues to thrust results with beardown maturation crossed each fronts successful the archetypal quarter.

Clients stay highly engaged, and they proceed to crook to Schwab done volatile and uncertain markets. Clients opened 1.3 cardinal brokerage accounts up 10% implicit past year. Excluding a onetime communal money clearing outflow, we attracted $158 cardinal successful halfway nett caller assets, a archetypal 4th grounds that brings full lawsuit assets to $11.8 trillion. March was our 2nd highest period of NNA ever down lone December of 2021. Clients proceed to crook to america for much of their fiscal lives with beardown engagement successful our wealthiness and lending solutions. Managed investing nett flows were up 46%, reaching an all-time record. Bank lending was up 29% year-over-year with slope merchandise balances and pledged plus enactment balances reaching all-time records.

We supported a grounds 9.9 cardinal regular mean trades. This engagement led to grounds fiscal results with revenues up 16% [indiscernible] $1.43, up astir 40% implicit past year. Behind those numbers are radical of each beingness stages who are turning to Schwab to put and commercialized done a play of heightened marketplace volatility. In the archetypal quarter, we continued to execute crossed our cardinal strategical absorption areas and present innovations astatine a accelerated gait to assistance clients turn and support their wealth. I'll item conscionable a few, starting with growth. We're continuing to prosecute fiscal consultants and wealthiness advisers portion expanding our subdivision footprint with astir a twelve caller branches planned for 2026.

When clients person a nonstop narration with a fiscal consultant, their Client Promoter Scores summation 10 points and they spot Schwab with 2.4x much nett caller assets. We launched the Schwab Team Investor account, giving young radical ages 13 to 17, an engaging mode to get started connected their lifelong investing journey. Our differentiated associated relationship operation allows parents to show and prosecute arsenic needed arsenic their teams commercialized and invest. We are inactive successful the aboriginal days, but person seen large involvement and enthusiasm truthful far. We judge it is important for teenagers to larn the benefits of redeeming and investing. The merits of compounding implicit messaging from the much gambling oriented messaging from immoderate competitors.