Retail investment frenzy helped boost Charles Schwab Corp's (SCHW.US) Q3 assets surge higher than expected by 48%.

Thanks to a significant increase in retail investment activity, Charles Schwab Corp (SCHW.US) announced better-than-expected third-quarter performance. The financial report shows that the company's net new assets totaled $134.4 billion for the period, a 48% increase year-over-year, exceeding analysts' previous forecasts of $130.2 billion for the three months ending in September. Daily average revenue trades increased by 30% to $7.42 trillion, also higher than analysts' expected $7.25 trillion. Net revenue reached $6.1 billion, a 27% increase from the same period last year, surpassing the market's expectation of $5.95 billion; net profit was $2.4 billion, a significant 67% increase from the same period in 2024, with earnings per share of $1.26, adjusted earnings per share of $1.31, both exceeding the market's expectation of $1.24. Charles Schwab Corp CEO Rick Wurster stated in a statement on Thursday, "The organic growth trend continues to strengthen, adoption of wealth management solutions continues to rise, and favorable macroeconomic conditions are driving the company to achieve record revenue and earnings per share this quarter." Retail investors' growing interest in financial management has long been a positive influence on Charles Schwab Corp. The company has seen new brokerage account openings surpassing 1 million for four consecutive quarters. Wurster pointed out last month that as many companies choose to extend their private operations, retail investors' demand for private equity investments is increasing, and Charles Schwab Corp is exploring how to provide customers with more channels for such investments. As a Financial Institution, Inc. with both brokerage and banking qualifications, Charles Schwab Corp is expanding its digital business while also increasing investment in offline branches. The company, headquartered in Westlake, Texas, announced last month that it would add 16 new branches and expand or relocate 25 existing locations. Before Charles Schwab Corp released its financial report, several large Wall Street banks had already announced their third-quarter performance earlier this week. These institutions have also benefited from strong customer demand for the stock market and other investment areas, with Morgan Stanley's global wealth management business generating revenue of $8.2 billion, exceeding market expectations. Before the Thursday stock market opening, Charles Schwab Corp's stock price rose by over 3%. The company announced a $20 billion stock buyback plan in July, and in the third quarter, it spent $2.7 billion repurchasing 28.9 million shares of common stock.