Charles Schwab Corporation (SCHW) Q4 2024 Earnings Breakdown

Key Highlights:

• Revenue Growth: Schwab's net revenues for Q4 2024 reached $5.3 billion, a 20% increase compared to Q4 2023. Full-year revenue also increased to $19.6 billion, a 4% jump from 2023. This growth was attributed to strong client engagement, increased margin utilization, positive client cash trends, and record net inflows into Managed Investing Solutions. As CEO Rick Wurster stated, "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."
• Earnings Increase: GAAP earnings per share were $0.94, and adjusted earnings per share reached $1.01, representing a 49% increase compared to Q4 2023. GAAP net income hit $1.8 billion, while adjusted net income was $2.0 billion.
• Profitability: The adjusted pre-tax profit margin for Q4 2024 was a robust 46.6%, driven by strong revenue growth and disciplined expense management. According to CFO Mike Verdeschi, "The combination of 20% revenue growth and disciplined expense management resulted in a 4Q24 pre-tax profit margin of 43.3% – 46.6% adjusted – as well as quarterly GAAP and adjusted earnings per share growth of 84% and 49%, respectively.”
• Expense Management: GAAP expenses decreased by 7% compared to Q4 2023, and adjusted expenses remained flat year-over-year, excluding transaction-related and