Business Description
The Charles Schwab Corporation (CSC) is a savings and loan holding company that operates through its subsidiaries to provide a wide range of financial services, including wealth management, securities brokerage, banking, asset management, custody, and financial advisory services . Schwab's business is divided into two main segments: Investor Services and Advisor Services, offering products such as brokerage accounts, mutual funds, exchange-traded funds (ETFs), advice solutions, alternative investments, banking products, and trust services . The company's largest sources of net revenues are net interest revenue, asset management and administration fees, trading revenue, and bank deposit account fees .
- Net Interest Revenue - Generated from interest-earning assets such as high-quality fixed income securities, margin loans, and bank loans, funded by uninvested client cash balances.
- Asset Management and Administration Fees - Collected from managing and administering client assets, including mutual funds and ETFs.
- Trading Revenue - Earned from facilitating securities transactions for clients.
- Bank Deposit Account Fees - Charged for maintaining client bank deposit accounts.
- Investor Services - Offers retail brokerage, investment advisory, banking, and trust services to individual investors, as well as retirement plan services and corporate brokerage services to businesses and their employees.
- Advisor Services - Provides custodial, trading, banking, trust, and support services to independent registered investment advisors (RIAs), independent retirement advisors, and recordkeepers.
- Brokerage Accounts - Offers platforms for clients to buy and sell securities.
- Mutual Funds and ETFs - Provides a range of investment funds for clients to diversify their portfolios.
- Advice Solutions - Delivers personalized investment advice and planning services.
- Alternative Investments - Offers investment options outside of traditional stocks and bonds.
- Banking Products - Includes a variety of banking services such as loans and deposit accounts.
- Trust Services - Provides trust administration and management services for clients.
You might also like
Key Metrics
Revenue by Segment - in Millions of USD | FY 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | FY 2014 | Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | FY 2015 | Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | FY 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | FY 2017 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | FY 2018 | Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | FY 2019 | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | FY 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | FY 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | FY 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Investor Services | 3,863 | 3,543 | 3,560 | 3,439 | 14,405 | 3,672 | 3,654 | 3,787 | ||||||||||||||||||||||||||||||||||||||||||||||
- Net Interest Revenue | 737 | 585 | 527 | 483 | 2,332 | 491 | 443 | 467 | ||||||||||||||||||||||||||||||||||||||||||||||
- Asset Management Fees | 313 | 332 | 347 | 366 | 1,358 | 401 | 410 | 430 | ||||||||||||||||||||||||||||||||||||||||||||||
- Trading Revenue | 117 | 102 | 96 | 109 | 424 | 104 | 92 | 91 | ||||||||||||||||||||||||||||||||||||||||||||||
- Bank Deposit Fees | 52 | 35 | 48 | 46 | 181 | 48 | 40 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||
- Other | 80 | - | 82 | - | 325 | 87 | 88 | - | ||||||||||||||||||||||||||||||||||||||||||||||
Advisor Services | 1,253 | 1,113 | 1,046 | 1,02 | 4,432 | 1,068 | 1,036 | 1,060 | ||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Revenue | 2,770 | 2,290 | 2,237 | 2,13 | 9,427 | 2,233 | 2,158 | 2,222 | ||||||||||||||||||||||||||||||||||||||||||||||
Asset Management Fees | 1,118 | 1,173 | 1,224 | 1,241 | 4,756 | 1,348 | 1,383 | 1,476 | ||||||||||||||||||||||||||||||||||||||||||||||
- Mutual Funds, ETFs, CTFs | 585 | - | 666 | - | 2,563 | 758 | 785 | - | ||||||||||||||||||||||||||||||||||||||||||||||
- Advice Solutions | 453 | - | 476 | - | 1,868 | 503 | 510 | - | ||||||||||||||||||||||||||||||||||||||||||||||
Trading Revenue | 892 | 803 | 768 | 767 | 3,230 | 817 | 777 | 797 | ||||||||||||||||||||||||||||||||||||||||||||||
- Commissions | 422 | - | 394 | - | 1,601 | 413 | 383 | - | ||||||||||||||||||||||||||||||||||||||||||||||
- Order Flow Revenue | 414 | - | 325 | - | 1,404 | 352 | 357 | - | ||||||||||||||||||||||||||||||||||||||||||||||
- Principal Transactions | 56 | - | 49 | - | 225 | 52 | 37 | - | ||||||||||||||||||||||||||||||||||||||||||||||
Bank Deposit Fees | 151 | 175 | 205 | 174 | 705 | 183 | 153 | 152 | ||||||||||||||||||||||||||||||||||||||||||||||
Other Revenue | 185 | 215 | 172 | 147 | 719 | 159 | 219 | 200 | ||||||||||||||||||||||||||||||||||||||||||||||
Total Revenue | 5,116 | 4,656 | 4,606 | 4,459 | 18,837 | 4,740 | 4,690 | 4,847 | ||||||||||||||||||||||||||||||||||||||||||||||
KPIs - Metric | FY 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | FY 2014 | Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | FY 2015 | Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | FY 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | FY 2017 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | FY 2018 | Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | FY 2019 | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | FY 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | FY 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | FY 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
Clients' Daily Average Trades [thousands] | 5,895 | 5,272 | 5,218 | 5,192 | - | 5,958 | 5,486 | 5,697 | ||||||||||||||||||||||||||||||||||||||||||||||
New Brokerage Accounts [thousands] | 1,042 | 960 | 894 | 910 | - | 1,100 | 985 | 972 | ||||||||||||||||||||||||||||||||||||||||||||||
Active Brokerage Accounts [millions] | 34.12 | 34.4 | 34.5 | 34.8 | - | 35.3 | 35.6 | 36.0 | ||||||||||||||||||||||||||||||||||||||||||||||
Assets Receiving Ongoing Advisory Services [billion $] | 3,895.5 | 4,075.3 | 3,981.0 | 4,338.8 | - | 4,628.0 | 4,722.9 | 5,018.9 | ||||||||||||||||||||||||||||||||||||||||||||||
Client Cash as a Percentage of Client Assets [%] | 11.6 | 10.5 | 10.8 | 10.5 | - | 10.0 | 9.7 | 9.5 | ||||||||||||||||||||||||||||||||||||||||||||||
Revenue per Trade [$] | 2.44 | 2.46 | 2.35 | 2.36 | - | 2.25 | 2.25 | 2.20 | ||||||||||||||||||||||||||||||||||||||||||||||
BDA Balances [billion $] | 106.5 | 102.7 | 99.6 | 97.4 | - | 92.859 | 84.5 | 84.0 | ||||||||||||||||||||||||||||||||||||||||||||||
CSB Purchased First Mortgages [million $] | 723 | 854 | 765 | - | - | 680 | 851 | 1,100 | ||||||||||||||||||||||||||||||||||||||||||||||
Bank Deposit Account Fees [million $] | 151 | 175 | 205 | 174 | - | 183 | 153 | 152 | ||||||||||||||||||||||||||||||||||||||||||||||
Average Net Yield [%] | 0.52 | 0.67 | 0.79 | - | - | 0.78 | 0.70 | 0.72 | ||||||||||||||||||||||||||||||||||||||||||||||
HELOCs Converted to Amortizing Loans [million $] | 7 | 11 | 176 | - | - | 156 | 147 | 143 | ||||||||||||||||||||||||||||||||||||||||||||||
HELOCs Secured by Second Liens [million $] | 435 | 404 | 389 | 379 | - | 360 | 352 | 344 |
Executive Team
Competitors
Competitors mentioned in the company's latest 10K filing.
- Brokerage firms
- Wealth management firms
- Asset management firms
- Banks
- Trust companies
- Financial technology companies
- Retirement service providers
- Institutional custodians
- Wirehouses
- Regional broker-dealers
- Independent broker-dealers