Splurge on a $20 billion share buyback to boost confidence in growing Charles Schwab Corp (SCHW.US)

Wall Street asset management giant Charles Schwab Corp (SCHW.US) announced on Thursday in US Eastern Time the launch of a new round of stock repurchase plan totaling up to $20 billion, driving the company's stock price higher. As of Thursday's closing of the US stock market, Charles Schwab Corp's stock price rose nearly 2%, with a gain of up to 30% for the year, significantly outperforming the S&P 500 index. The Texas-based asset management giant stated in a statement released on Thursday that this plan replaces the remaining stock repurchase authorization of about $6.9 billion. The new plan authorizes the repurchase of $20 billion of common stock, but the company did not provide a specific timeline for the repurchase. Charles Schwab Corp's Co-Chairman Walt Bettinger stated in the announcement that this decision reflects the company's "sustained business and financial fundamentals momentum, as well as our continued confidence in the long-term growth prospects of the company." The company's stock further rose in after-hours trading on the New York Stock Exchange, reaching nearly 3% at one point. This year, Charles Schwab Corp's stock price has surged over 30% under the four main drivers of "asset inflow, net interest margin expansion, cost optimization, and capital feedback," with the stock price hovering near its all-time high recently. In the second quarter of 2025, Charles Schwab Corp's core net new assets reached $80.3 billion, a year-on-year increase of up to 31%, totaling $218 billion in the first half of the year. By the end of the reporting period, total customer assets increased by 14% year-on-year to $10.76 trillion, setting a new record. Customer trading revenue surged by 23% year-on-year to $952 million, benefiting mainly from the market volatility in the second quarter and the super rebound in the US stock market. Since US President Donald Trump announced tariffs on global trading partners in April, stock market volatility has swept the globe, with markets reaching all-time highs amidst the turbulence, a significant boon for Charles Schwab Corp and its Wall Street peers in market trading operations, as customer trading activities surged. It is understood that this latest stock repurchase plan is an efficient allocation for Charles Schwab Corp to return profits from cash flow to shareholders under sufficient capital levels (Tier 1 capital ratio of approximately 21%), providing marginal buying support for the market as the stock price continues to hit new highs, demonstrating the company's full confidence in future performance growth. Especially at a time when the stock price is at historic highs, the $20 billion stock repurchase plan can be seen as boosting bullish sentiment in the market, reinforcing investors' strong expectations for sustained profit growth.