Charles Schwab's profit rises as interest income and trading revenues increase

Charles Schwab reported fourth-quarter net income of US$2.46 billion and net revenue of US$6.34 billion, a 19% year-over-year rise, supported by higher net interest revenue and trading activity.

Charles Schwab reported a rise in fourth-quarter profit driven by higher interest income and stronger trading revenue. The results reflect activity across its brokerage, asset management, banking and other services. Market volatility and debate over the Federal Reserve's interest rate path prompted portfolio reshuffling that boosted trading businesses. The firm also noted increased management fees amid an AI-driven rally in U.S. markets. Key figures: - Fourth-quarter net income was US$2.46 billion, or US$1.33 per share, compared with US$1.84 billion, or 94 US cents per share, a year earlier. - Net revenue for the quarter rose 19% to US$6.34 billion, slightly below the US$6.37 billion estimate compiled by LSEG. - Net interest revenue increased by over 25% to US$3.17 billion. - Core net new assets for the quarter reached a record US$163.9 billion, bringing total asset gathering in 2025 to US$519.4 billion, a 42% jump. - The company reported trading revenue gains amid market volatility and said an AI-driven rally supported higher management fees. Summary: The quarter showed profit growth supported by rising interest income and trading revenues, while net revenue narrowly missed analyst estimates. Asset gathering was strong for the quarter and for 2025 overall. Undetermined at this time.