Record June Core Net New Assets Grew 47% Year-Over-Year to $62.7 Billion

2Q Net Revenues Reached a Record $7.1 Billion, Up 21% Year-Over-Year

Record GAAP Earnings Per Share of $1.54; $1.62 Adjusted ⁽¹⁾ – up 42% versus 2Q25

The Charles Schwab Corporation reported net income for the second quarter totaling $2.8 billion, or earnings per share of $1.54. Excluding $170 million of pre-tax transaction-related costs, adjusted ⁽¹⁾ net income and earnings per share equaled $2.9 billion and $1.62, respectively.

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Client Driven Growth	$120B 2Q26 Core Net New Assets	"Schwab’s leading value proposition continued to resonate in 2Q26, as investors opened 1.4 million new brokerage accounts and brought $120 billion in core net new assets to the firm. June core asset gathering totaled a record $62.7 billion – an annualized organic growth rate of 5.8%." President & CEO Rick Wurster

Deepen Client Relationships	53% 2Q26 Managed Investing Net Flows Growth	"Investors continued to engage with Schwab’s expanding set of solutions during 2Q as daily average trades reached a record 11.9 million, net flows into Schwab Wealth Advisory™ increased 80% year-over-year, and Pledged Asset Line™ balances equaled $33.4 billion – up 59% from 2Q25." President & CEO Rick Wurster

Diversified Revenue Growth	21% 2Q26 Revenue Growth vs. 2Q25	"Our ability to do more for clients throughout their financial lives enables Schwab to deliver robust results across a range of environments. During the second quarter, strong client engagement helped drive year-over-year revenue growth of 21% to a record $7.1 billion." CFO Mike Verdeschi

Strong Earnings Momentum	43% 2Q26 GAAP EPS Growth vs. 2Q25	"During 2Q26, the strength of Schwab’s diversified business model, our industry-leading scale, and opportunistic capital return in multiple forms combined to deliver year-over-year GAAP earnings growth of 43% to a record $1.54 per share, or $1.62 on an adjusted⁽¹⁾ basis." CFO Mike Verdeschi

2Q26 Client and Business Highlights

Total client assets increased 22% year-over-year to $13.08 trillion
Core net new assets totaled $119.8 billion, up 49% versus 2Q25
New brokerage account openings equaled 1.4 million, helping bring total client accounts to 48.0 million
Managed Investing Solutions net flows grew 53% versus 2Q25
Bank loan balances equaled $67.0 billion at June month-end, up 33% year-over-year
Margin loan balances increased 30% quarter-over-quarter to $165.1 billion at quarter-end
Long/short strategy interest remained strong amongst RIA clients ⁽²⁾, with margin loan debits and short cash credits equaling $42.1 billion and $43.7 billion, respectively, as of June 30, 2026
Daily average trading volume reached a record 11.9 million – up 57% versus 2Q25
Launched Schwab Crypto™, providing direct access to Bitcoin and Ethereum trading for retail clients
Introduced Portfolio Insights, a generative AI-powered capability that helps investors understand portfolio performance ⁽³⁾
Schwab recognized as the Best Investing Platform by U.S. News for the 4^th consecutive year ⁽⁴⁾

	Three Months Ended June 30,						%		Six Months Ended June 30,						%
Financial Highlights	2026			2025			Change		2026			2025			Change

Net revenues (in millions)	$	7,072		$	5,851		21	%	$	13,554		$	11,450		18	%
Net income (in millions)
GAAP	$	2,800		$	2,126		32	%	$	5,279		$	4,035		31	%
Adjusted	$	2,930		$	2,222		32	%	$	5,518		$	4,230		30	%
Diluted earnings per common share
GAAP	$	1.54		$	1.08		43	%	$	2.91		$	2.07		41	%
Adjusted	$	1.62		$	1.14		42	%	$	3.05		$	2.17		41	%
Pre-tax profit margin
GAAP		51.9	%		47.9	%				50.6	%		45.9	%
Adjusted		54.3	%		50.1	%				52.9	%		48.2	%
Return on average common stockholders’ equity (annualized)		25	%		19	%				23	%		18	%
Return on tangible common equity (annualized)		44	%		35	%				41	%		34	%

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.

2Q26 Financial Commentary

Quarterly net revenues grew year-over-year by 21% to a record $7.1 billion
Net interest margin for the quarter expanded 12 basis points quarter-over-quarter to 3.00%
Client transactional sweep cash balances ended June at $485.7 billion, an increase of $24.2 billion versus the prior quarter-end, reflecting typical 2Q tax seasonality, organic growth, and client asset allocation decisions
Average interest-earning assets for the quarter equaled $445.0 billion, up 5% versus 2Q25
Asset management and administration fees grew by 16% year-over-year to $1.8 billion, powered by the firm’s organic growth and investors’ increased utilization of our wealth and asset management solutions
Record client trading activity drove trading revenue of $1.2 billion, up 28% year-over-year
GAAP expenses for the quarter increased 12% year-over-year; excluding acquisition and integration-related costs and the amortization of acquired intangibles of $170 million, adjusted total expenses⁽¹⁾were up 11% relative to 2Q25
Capital ratios across the firm remained strong – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage⁽¹⁾ equaling 8.7% and 6.8%, respectively
Redeemed $2.1 billion Series I Preferred Stock and issued $1.5 billion Series L Preferred Stock
Repurchased 11.2 million shares of our common stock for $1.0 billion during the quarter

⁽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⁾		Client margin loans and short credits related to certain long/short strategies utilized by RIAs are excluded from interest-earning assets and company funding sources.
⁽³⁾		Portfolio Insights (Insights) is a generative artificial intelligence feature designed to provide: (1) a narrative snapshot of a client’s Portfolio’s Day Change performance as of now versus the prior trading day’s close; (2) a recap of recent news about the top S&P 500^® equity movers (up to five securities) most affecting the value of a client’s portfolio; and (3) snippets of the day’s Schwab Center for Financial Research and other Schwab expert content related to a client’s portfolio. The summaries can be refreshed throughout the day. Insights into specific securities are not necessarily representative of a client’s portfolio. The securities referenced to prepare each Insight vary and certain asset types are excluded. Insights should not be construed as investment advice or recommendations and are for informational and educational purposes only. Generative AI output may be inaccurate, containing hallucinated, stale, or incomplete information. Clients should consult their Account Statement(s) for complete account information. For more information about Schwab Portfolio Insights, please visit https://www.schwab.com/legal/portfolio-insights-disclosure.
⁽⁴⁾		U.S. News & World Report’s Best Investing Platforms awards were given on 04/16/2026. The criteria, evaluation, and ranking were determined by U.S. News & World Report. See https://money.usnews.com/investing/best-brokers/methodology for more information. Schwab paid a licensing fee to U.S. News & World Report for use of the award and logos.

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 diversified business model, scale, solutions, client engagement, and capital return. 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 39.8 million active brokerage accounts, 5.9 million workplace plan participant accounts, 2.4 million banking accounts, and $13.08 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,
	2026			2025			2026			2025
Net Revenues
Interest revenue	$	4,432		$	3,787		$	8,394		$	7,544
Interest expense		(1,075	)		(965	)		(1,893	)		(2,016	)
Net interest revenue		3,357			2,822			6,501			5,528
Asset management and administration fees		1,825			1,570			3,584			3,100
Trading revenue		1,215			952			2,304			1,860
Bank deposit account fees		333			247			628			492
Other		342			260			537			470
Total net revenues		7,072			5,851			13,554			11,450
Expenses Excluding Interest
Compensation and benefits		1,790			1,536			3,602			3,208
Professional services		307			291			610			560
Occupancy and equipment		301			270			586			544
Advertising and market development		111			108			212			204
Communications		198			176			361			329
Depreciation and amortization		198			215			399			432
Amortization of acquired intangible assets		142			128			274			258
Regulatory fees and assessments		63			77			138			166
Other		293			247			515			491
Total expenses excluding interest		3,403			3,048			6,697			6,192
Income before taxes on income		3,669			2,803			6,857			5,258
Taxes on income		869			677			1,578			1,223
Net Income		2,800			2,126			5,279			4,035
Preferred stock dividends and other		119			149			201			262
Net Income Available to Common Stockholders	$	2,681		$	1,977		$	5,078		$	3,773
Weighted-Average Common Shares Outstanding:
Basic		1,735			1,817			1,740			1,819
Diluted		1,739			1,822			1,745			1,825
Earnings Per Common Shares Outstanding:
Basic	$	1.55		$	1.09		$	2.92		$	2.07
Diluted	$	1.54		$	1.08		$	2.91		$	2.07

THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)

	Q2-26 % change				2026						2025
(In millions, except per share amounts and as noted)	vs.		vs.		Second			First			Fourth			Third			Second
(In millions, except per share amounts and as noted)	Q2-25		Q1-26		Quarter			Quarter			Quarter			Quarter			Quarter
Net Revenues
Net interest revenue	19	%	7	%	$	3,357		$	3,144		$	3,172		$	3,050		$	2,822
Asset management and administration fees	16	%	4	%		1,825			1,759			1,733			1,673			1,570
Trading revenue	28	%	12	%		1,215			1,089			1,066			995			952
Bank deposit account fees	35	%	13	%		333			295			238			247			247
Other	32	%	75	%		342			195			127			170			260
Total net revenues	21	%	9	%		7,072			6,482			6,336			6,135			5,851
Expenses Excluding Interest
Compensation and benefits	17	%	(1	)%		1,790			1,812			1,630			1,653			1,536
Professional services	5	%	1	%		307			303			344			293			291
Occupancy and equipment	11	%	6	%		301			285			293			280			270
Advertising and market development	3	%	10	%		111			101			115			101			108
Communications	13	%	21	%		198			163			142			149			176
Depreciation and amortization	(8	)%	(1	)%		198			201			206			212			215
Amortization of acquired intangible assets	11	%	8	%		142			132			127			127			128
Regulatory fees and assessments	(18	)%	(16	)%		63			75			62			59			77
Other	19	%	32	%		293			222			237			240			247
Total expenses excluding interest	12	%	3	%		3,403			3,294			3,156			3,114			3,048
Income before taxes on income	31	%	15	%		3,669			3,188			3,180			3,021			2,803
Taxes on income	28	%	23	%		869			709			721			663			677
Net Income	32	%	13	%		2,800			2,479			2,459			2,358			2,126
Preferred stock dividends and other	(20	)%	45	%		119			82			92			81			149
Net Income Available to Common Stockholders	36	%	12	%	$	2,681		$	2,397		$	2,367		$	2,277		$	1,977
Earnings per common share:
Basic	42	%	13	%	$	1.55		$	1.37		$	1.34		$	1.26		$	1.09
Diluted	43	%	12	%	$	1.54		$	1.37		$	1.33		$	1.26		$	1.08
Dividends declared per common share	19	%	—		$	.32		$	.32		$	.27		$	.27		$	.27
Weighted-average common shares outstanding:
Basic	(5	)%	(1	)%		1,735			1,746			1,772			1,806			1,817
Diluted	(5	)%	(1	)%		1,739			1,752			1,777			1,811			1,822
Performance Measures
Pre-tax profit margin						51.9	%		49.2	%		50.2	%		49.2	%		47.9	%
Return on average common stockholders’ equity (annualized) ⁽¹⁾						25	%		23	%		22	%		21	%		19	%
Financial Condition (at quarter end, in billions)
Cash and cash equivalents	26	%	(10	)%	$	40.6		$	45.0		$	46.0		$	30.6		$	32.2
Cash and investments segregated	(28	)%	(17	)%		33.0			39.8			42.9			47.8			45.6
Receivables from brokers, dealers, and clearing organizations	N/M		86	%		22.0			11.8			7.2			4.7			4.3
Receivables from brokerage clients — net	48	%	16	%		122.8			106.2			104.7			93.8			82.8
Available for sale securities	(8	)%	2	%		62.5			61.1			62.4			62.3			67.6
Held to maturity securities	(7	)%	(1	)%		130.6			131.7			134.0			136.7			139.7
Bank loans — net	33	%	10	%		67.0			60.9			58.0			53.6			50.4
Total assets	13	%	5	%		517.3			493.3			491.0			465.3			458.9
Bank deposits	7	%	(1	)%		249.7			253.0			255.7			239.1			233.1
Payables to brokers, dealers, and clearing organizations	135	%	56	%		43.8			28.1			25.7			22.4			18.6
Payables to brokerage clients	13	%	5	%		124.0			118.0			116.3			115.4			109.4
Accrued expenses and other liabilities	16	%	4	%		12.5			12.0			12.8			11.4			10.8
Other short-term borrowings	64	%	11	%		13.9			12.5			6.9			6.5			8.5
Federal Home Loan Bank borrowings	(94	)%	N/M			0.5			—			1.9			0.9			9.0
Long-term debt	12	%	11	%		22.7			20.5			22.2			20.2			20.2
Total liabilities	14	%	5	%		467.1			444.1			441.6			415.9			409.5
Stockholders’ equity	1	%	2	%		50.1			49.2			49.4			49.4			49.5
Total liabilities and stockholders’ equity	13	%	5	%		517.3			493.3			491.0			465.3			458.9
Other
Full-time equivalent employees (at quarter end, in thousands)	3	%	1	%		33.7			33.5			33.0			32.7			32.6
Capital expenditures — purchases of equipment, office facilities, and property, net (in millions) ⁽²⁾	N/M		N/M		$	792		$	173		$	158		$	152		$	136
Expenses excluding interest as a percentage of average client assets (annualized)						0.11	%		0.11	%		0.11	%		0.11	%		0.12	%
Clients’ Daily Average Trades (DATs) (in thousands)	57	%	20	%		11,920			9,899			8,274			7,421			7,571
Number of Trading Days	—		2	%		62.0			61.0			63.0			63.5			62.0
Revenue Per Trade ⁽³⁾	(19	)%	(9	)%	$	1.64		$	1.80		$	2.05		$	2.11		$	2.03

⁽¹⁾		Return on average common stockholders’ equity is calculated using net income available to common stockholders divided by average common stockholders’ equity.
⁽²⁾		Second quarter of 2026 includes incremental capital expenditures of $633 million related to a multi-year software license agreement with a corresponding liability recognized in long-term debt.
⁽³⁾		Revenue per trade is calculated as trading revenue divided by the product of DATs and the number of trading days.
N/M Not meaningful. Percentage changes greater than 200% are presented as not meaningful.

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,
	2026						2025						2026						2025
	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	$	30,707	$	278	3.58	%	$	28,000	$	305	4.30	%	$	31,587	$	566	3.57	%	$	29,236	$	633	4.30	%
Cash and investments segregated		41,326		374	3.58	%		47,574		506	4.20	%		42,629		771	3.60	%		43,117		918	4.23	%
Receivables from brokerage clients ⁽¹⁾		112,136		1,609	5.68	%		78,732		1,321	6.64	%		108,349		3,108	5.71	%		80,805		2,700	6.64	%
Available for sale securities ⁽²⁾		65,864		358	2.17	%		77,750		405	2.08	%		65,561		684	2.09	%		81,151		838	2.06	%
Held to maturity securities ⁽²⁾		131,126		570	1.73	%		141,098		602	1.70	%		131,656		1,137	1.73	%		142,740		1,224	1.71	%
Bank loans		63,823		693	4.35	%		48,691		518	4.27	%		61,567		1,320	4.31	%		47,374		1,011	4.29	%
Total interest-earning assets		444,982		3,882	3.47	%		421,845		3,657	3.45	%		441,349		7,586	3.43	%		424,423		7,324	3.44	%
Securities lending revenue				178						96						269						156
Other interest revenue ⁽¹⁾				372						34						539						64
Total interest-earning assets	$	444,982	$	4,432	3.96	%	$	421,845	$	3,787	3.57	%	$	441,349	$	8,394	3.79	%	$	424,423	$	7,544	3.54	%
Funding sources
Bank deposits	$	246,346	$	114	0.19	%	$	237,645	$	326	0.55	%	$	244,522	$	232	0.19	%	$	241,660	$	762	0.64	%
Payables to brokers, dealers, and clearing organizations		31,693		276	3.45	%		16,657		167	3.97	%		28,617		493	3.43	%		15,424		304	3.93	%
Payables to brokerage clients ⁽¹⁾		108,840		59	0.22	%		92,425		60	0.26	%		106,978		115	0.22	%		91,305		109	0.24	%
Other short-term borrowings		11,082		111	3.98	%		7,644		87	4.55	%		10,098		203	4.02	%		7,172		169	4.74	%
Federal Home Loan Bank borrowings		126		1	3.79	%		9,753		110	4.48	%		699		13	3.85	%		10,236		243	4.72	%
Long-term debt		21,324		228	4.23	%		20,624