Charles Schwab Corporation (NYSE:SCHW) stock rose 0.30% (As on October 17, 11:22:16 AM UTC-4, Source: Google Finance) after the company reported third-quarter earnings and revenue that exceeded analyst expectations. Strengthening organic growth trends, increasing adoption of wealth solutions, and favorable macroeconomic tailwinds powered another quarter of record revenue and earnings per share. For the quarter, total client assets increased 17% year-over-year to a record $11.59 trillion. Core net new assets of $137.5 billion brings year-to-date asset gathering to $355.5 billion – up 41% year-over-year. New brokerage account openings exceeded 1 million for the 4th consecutive quarter, pushing active brokerage accounts and total client accounts to 38.0 million and 45.7 million, respectively. Managed Investing Solutions net inflows grew 40% versus 3Q24. Margin balances ended the quarter at $97.2 billion – up 16% versus year-end 2024 Daily average trading volume was 7.4 million – up 30% versus 3Q24.

Moreover, net interest margin expanded sequentially by 21 basis points to 2.86% due to the further reduction of higher cost liabilities, strong securities lending activity, and clients’ increased utilization of our lending solutions. Client transactional sweep cash balances ended September at $425.6 billion, an increase of $13.5 billion versus the prior quarter-end, reflecting organic growth, client net buying activity, and seasonality. Bank Supplemental Funding declined by $12.9 billion to end the quarter at $14.8 billion. Asset management and administration fees increased by 13% year-over-year to $1.7 billion, powered by the firm’s organic growth, equity market appreciation, and investors’ utilization of our wealth and asset management solutions. Trading revenue increased 25% versus 3Q24 due to robust volumes and stronger client interest in derivatives

SCHW in the third quarter of FY25 has reported the adjusted earnings per share of $1.31, beating the analysts’ estimates for the adjusted earnings per share of $1.24, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 27 percent to $6.14 billion in the third quarter of FY25, beating the analysts’ estimates for revenue by 3%. Capital ratios across the firm remained strong – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage equaling 9.7% and 7.3%, respectively. The firm delivered an annualized return on average common equity of 21%, up from 14% in the same period last year, while annualized return on tangible common equity improved to 38% from 31% a year ago.

Additionally, the company repurchased 28.9 million shares of the common stock for $2.7 billion during the quarter.