Schwab’s New Assets Rise 48% on Retail Investor Demand

(Bloomberg) — Charles Schwab Corp. reported third-quarter earnings that beat estimates as the firm benefited from a surge in retail investing activity.

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The firm reported $134.4 billion in total net new assets, a 48% increase from a year earlier. That’s more than the $130.2 billion analysts had forecast for the three months through September.

Daily average trades grew 30% to 7.42 million, topping the 7.25 million expected by analysts.

“Strengthening organic growth trends, increasing adoption of wealth solutions and favorable macroeconomic tailwinds powered another quarter of record revenue and earnings per share,” Chief Executive Officer Rick Wurster said in a statement Thursday.

Schwab has consistently benefited from an increased interest from retail customers in investing. Openings of new brokerage accounts topped 1 million for the fourth quarter in a row. Wurster said last month that retail investors increasingly want access to private companies, given that many firms are staying private for longer, and that Schwab is looking at how to give its client greater access to such investments.

As the firm faces competition from digitally native investing firms such as Robinhood Markets Inc., Schwab is continuing to entice younger clients, Wurster said. A third of new-to-Schwab retail households are “Gen Zers,” or customers under 28 years old, he said on a call with analysts Thursday. Schwab is also on track to add spot cryptocurrency trading in the first half of 2026, Wurster said.

“I think crypto will be additive, but we’re already winning with them,” he said.

The brokerage, which is also a bank, is investing in physical locations alongside its digital presence. The Westlake, Texas-based company said last month it would add 16 branches and expand or relocate 25 existing locations.

Schwab’s earnings follow those of the biggest Wall Street banks, which reported their third-quarter results earlier this week. Those companies also benefited from strong client interest in the stock market and other investments, with Morgan Stanley’s global wealth-management revenue of $8.2 billion surpassing analysts’ forecasts.

Schwab shares rose 0.5% at 9:44 a.m. in New York trading. In July, Schwab announced a $20 billion stock-buyback program. The company said it repurchased 28.9 million shares for $2.7 billion during the third quarter.