Slides
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Fall Business Update October 15, 2026
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Forward Looking Statements Charles Schwab Corporation 2 This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements that refer to expectations, projections or other characterizations of future events or circumstances and are identified by words such as “expect,” “anticipate,” “assume,” “will,” “continue,” “seek,” “increase,” “drive,” “enhance,” “expand,” “positioned,” “sustain,” “enable,” “amplify,” and other similar expressions. These forward-looking statements relate to the company’s strategy; momentum and competitive position; growth; innovation; productivity; client relationships and engagement; opportunities; platform, managed investing, wealth advisory, lending products, long/short strategies, and alternative and private investments; spot crypto offer; artificial intelligence capabilities; scale and efficiency; diversified financial model; earnings growth and durability through the cycle; financial scenarios, assumptions, expectations and sensitivities seasonality; financial management and capital return; expense management and operating leverage; non- GAAP adjustments; balance sheet management; capital ratios; and capital management framework. Forward-looking statements reflect management’s beliefs, expectations and objectives as of today and are subject to risks and uncertainties that could cause actual results to differ materially. Important factors that may cause such differences are discussed in the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company’s website ( Financial Reports & Presentations | Charles Schwab) and on the Securities and Exchange Commission’s website (www.sec.gov). These include: the company’s ability to attract and retain retail and advisor clients and grow those relationships and associated client assets; investor engagement and interest in the company’s products and services; the company’s ability to develop and enable new technology, including artificial intelligence and blockchain technology; the company’s ability to support client activity levels and platform preferences; the company’s ability to serve clients across a diverse spectrum and capture greater market share; client cash allocation behavior; funding costs, general economic and market conditions, including interest rates, equity valuations and volatility; balance sheet positioning relative to changes in interest rates; capital and liquidity needs and management; the company’s ability to manage expenses; adverse developments in litigation or regulatory matters and any charges associated with such matters; and any developments in legislation, regulation or regulatory guidance relevant to our business. The information in this presentation speaks only as of October 15, 2026 (or such earlier date as may be specified herein). The company makes no commitment to update any forward-looking statements.
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Rick Wurster President and Chief Executive Officer 3Charles Schwab Corporation Michael Verdeschi Managing Director, Chief Financial Officer
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4Charles Schwab Corporation 1 Our “Through Clients’ Eyes” strategy continues to drive strong momentum, delivering record 3Q results Schwab’s unmatched value proposition uniquely positions us at the center of the investing ecosystem2 3 4 Schwab is leading today & our differentiated platform keeps us uniquely positioned to win tomorrow With a clear strategy, we continue to deliver innovative client-focused capabilities as AI amplifies our platform advantage Our diversified financial model supports durable earnings growth across market cycles Key Takeaways
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Charles Schwab Corporation 5 Client Financial Solutions Core Net New Assets New Brokerage Accounts $190B 1.2M +9% Managed Investing Net Flows Bank Lending1 (EOP) $24B $72B +35% Total Net Revenues Adjusted2 EPS $7.2B $1.69 Our “Through Clients’ Eyes” strategy continues to drive record results & growth across all fronts. Note: 1. Net consolidated loan balances. 2. Further detail on non-GAAP financial measures and a reconciliation of such measures to reported results are included on slides 35–39 of this presentation. 3Q26 vs. 3Q25 GAAP EPS $1.62 +29% +17% +38% +29% +22%
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Schwab was recognized by Fortune as one of Fortune’s 20262 America's Most Innovative Companies Charles Schwab Corporation 6 We continue to earn client & third-party recognition. Schwab was named Best Online Brokers and Trading Platforms for 2026, by Kiplinger3 Investor Services Client Promoter Score +5 pts 3Q26 vs. 3Q25 Advisor Services Easy Score1 93% 3Q26 Note: 1. Easy Score represents a client’s real-time rating of how easy it was to complete a specific task or transaction with th e firm. 2. Recognized as one of Fortune America's Most Innovative Companies 2026, given on March 25, 2026, and expires on March 24, 2027. The criteria, evalu ation, and ranking were determined by Fortune, partnered with Statista. https://fortune.com/ranking/americas-most-innovative-companies/ for more information. Schwab paid a licensing fee to Fortune for use of the award and logos. 3. The Kiplinger Best Online Brokers and Trading Platforms for 2026 survey was published by Kiplinger on September 4, 2026, and is for a 12-month timeframe. The criteria, evaluation, and ranking were determined by Kiplinger. https://www.kiplinger.com/investing/wealth-management/online-brokers/605136/the-best-online-brokers-and-trading-platforms for methodology. Schwab paid a licensing fee to Adcetera, for the use of the accolade and corresponding logos through October 15, 2027.
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Charles Schwab Corporation 7 [Note: ] We remain the trusted platform of choice for investors & RIAs. LEADERSHIP #1 Total Client Assets #1 RIA Custodial Assets ENGAGEMENT 1.8B Total Client Interactions1 #1 Daily Average Trades PLATFORM FLOWS ~1.8x TOA Ratio2 ~$3.8T Monthly Money Movement3 Note: Rankings based on publicly traded peer data as of 2Q26. 1. As of YTD 3Q26. Total client interactions includes branch co nversations, inbound calls, chats, emails, and logins across Schwab web and mobile platforms. 2. Represents Transfer of Assets ratio for the last 12 months ending September 30, 2026. 3. Monthly client money movement based on September YTD notional trading volume and monthly cash movement volume.
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Charles Schwab Corporation 8 Ongoing innovation further reinforces our differentiated value proposition. 2026 YTD Select Highlights Claude partnership Advisor UHNW Services enhancements Relationship Management Assistant Schwab Teen InvestorTM Account Schwab Private Issuer Equity Services Schwab Bank Structured Asset Line TM Advisor UHNW Services Schwab Crypto 24/7 Cryptocurrency Futures Trading Fractional Trading IPO Experience Portfolio Insights Single Stock Futures CBOE Binary Options New Schwab Crypto Coins Relationship Management Assistant SWA Digital Enrollment 1Q26 2Q26 3Q26
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Charles Schwab Corporation 9 [Note: ] AI is amplifying our platform advantage, creating more personalized client experiences & greater productivity at scale. 77% of U.S. Investors Use AI Today 90%+ Prefer Human Involvement Alongside AI Supercharging Our People & Processes Relationship Management Assistant AI-Powered Developer Tools Workflow Automation Elevating Client Experiences & Capabilities Portfolio Insights Claude for Financial Advisors ~25% Increase in Developer Productivity90% Positive Client Feedback on Portfolio Insights1 Note: 1. Results as of August 2026.
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Charles Schwab Corporation As investors consolidate their financial lives, Schwab remains uniquely at the center of the investing ecosystem. Powerful Combo of People + AI Self- directed & Advised Solutions Banking Trading Proprietary & 3rd Party Products Alternative & Private Investments Digital Assets Advice, Tax, Trust, & Estate 10
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Charles Schwab Corporation 11 As we look to the future, we are tackling our growth opportunities head-on with a clear strategy & rapid pace of client-focused innovation.
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$46 $95 $138 $190 3Q23 3Q24 3Q25 3Q26 +61%1 Charles Schwab Corporation 12 Core Net New Assets ($B) Serve a Growing Number of Clients across a diverse spectrum of individual investors & RIAs New Brokerage Accounts (K) 894 972 1,143 1,243 3,424 3,930 QUARTERLY RECORD 3Q26 Core NNA YTD RECORD 2026 YTD Core NNA 3Q26 New Brokerage Accounts $190B $450B 1.2M $356 $450 2025 YTD 2026 YTD 27% Note: Core net new assets = net new assets before significant one-time flows, such as acquisitions/divestitures or extraordinary flows (generally greater than $25 billion; $10 billion in prior periods) relating to a specific client, and activity from off- platform Schwab Bank Retail CDs. These flows may span multiple reporting periods. 1. Represents a three-year compound annual growth rate. 3Q RECORD
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13 SERVE A GROWING NUMBER OF CLIENTS Charles Schwab Corporation Advisor Services helps RIAs of all sizes grow, compete, & succeed. A differentiated, full-service platform Scale & Reputation1 Breadth Beyond Custody2 Dedicated Service & Support4 Operational Excellence3 Winning new custody relationships with RIAs of all sizes 13% 30% 22% 36% < $100M $100M - $1B $1B - $5B $5B+ NNA by RIA Size1 Schwab Peer A Peer B Peer C Peer D 1,101 349 339 202 79 Custodians Added to ADVs2 3Q26 Note: 1. Represents Advisor Services Institutional net new assets in 3Q26. RIAs are categorized by their assets on the Schwab platform at the beginning of the reporting period; firms onboarded during the period are excluded. 2. Custodians added to Form ADV filings, 2025.
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14 Note: 1. Data as of 3Q26. Gen Z = 1997 – 2012. Millennial = 1981 – 1996. 2. Data as of 3Q26. Retail households with $1M or more in assets. 3. Retention data is shown on an LTM basis, measured 18 mon ths after inheritance. 4. Defined as being in the FC/WA's Relationship/Active practice (does not include Engagement practice). 5. Assigned vs unassigned $1M -$10M clients based on YTD September. SERVE A GROWING NUMBER OF CLIENTS Charles Schwab Corporation Diverse set of individual investors Our Retail business is serving clients across the investor spectrum. Built to win across generations. We are investing in people + tech to expand relationship support. ~5x ~3x Household NNA MI Net Flows FC assignment rates4 $10M+ HHs ~100% $1M–$10M HHs ~60% FC Assigned vs. Unassigned5 ~70% NTF Retail HH are Gen Z & Millennials1 ATTRACT 80% Retail Assets Held by U/HNW2 HHs SERVE ~75% Assets Retained in a Wealth Transfer Event3 RETAIN Wealth Tiers New investors to ultra high net worth Investing Styles Self-directed to advised Next-gen to retirees Generations Digital-first to relationship-led Engagement Preferences 1 2 4 3
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Charles Schwab Corporation 15 Note: x Banking Trading Proprietary & 3rd-Party Products Alternative & Private Investments Digital Assets Advice, Tax, Trust, & Estate Deepen Existing Client Relationships & help them conduct more of their financial lives at Schwab
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16Note: Rounded values. 1. Schwab Advisor Network® includes AdvisorDirect. 2. Data presented as of end-of-year 2024. Source: The State of U.S. Retail & Institutional Asset Manage ment 2025, Cerulli. 3. Represents ROCA for 3Q26. vs retail investor households with >$500K in investable assets with Schwab, excluding Trader. Managed Investing Net Flows $3B $10B $12B $7B $10B 3Q25 $2B 3Q26 $20B $24B 22% DEEPEN EXISTING CLIENT RELATIONSHIPS Charles Schwab Corporation Our Opportunity Pathway SAN1 SWA Other Adoption WTP SWA ROCA vs. Retail HH3 ~3x ~2% Schwab Share of $37T Advice Market2 Schwab Advice Adoption vs. Willingness to Pay Ongoing Investments Wealth Hubs Discretionary Portfolios Enhanced Tax, Trust, & Estate Capabilities AI-powered Planning Schwab Wealth AdvisoryTM +55% 3Q26 vs. 3Q25 Net Flows 84 pts 3Q26 Client Promoter Score
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17 Ongoing Investments DEEPEN EXISTING CLIENT RELATIONSHIPS Charles Schwab Corporation Y/Y Trader Client Promoter Score +7 pts Our Opportunity Pathway Trader Client ROCA vs. Retail Average ~2x Binary Options Extended Hours Options Trading TOS Assistant & AI-Powered Trading2 Client Experience Enhancements Trader HH NNA vs. Retail Average ~7xExpert Trading Specialists 1.2K+ Note: Data as of 3Q26. 1.Data as of the last twelve months ending September 2026. 2. Model Context Protocol Solution. Retail Equity Notional1 ~$21T Daily Average Trades 10.7M
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Charles Schwab Corporation 18 Enhance Scale & Efficiency to make it easier for clients to work with us while keeping costs low & reinvesting in new capabilities DRIVE PRODUCTIVITY IMPROVE THE CLIENT EXPERIENCE KEEP COST TO SERVE LOW 90% Accounts opened digitally1 82% First call resolution 30 Average speed to answer ~11 ~36 ~68 Schwab Online Brokers & Wirehouses Regionals & IBDs Expense on Client Assets (bps)3 Simplify & automate work so our people & technology can support more growth Make Schwab easier to work with through faster, simpler & more digital experiences Leverage our scale to maintain a structural cost advantage while continuing to invest in growth secs ~10% Increase in FC Meeting Capacity2 Note: 1. Investor Services year-to-date as of September 2026. 2. Based on Relationship Management Assistant pilot launch 6/1 - 9/18; indicates increase for ‘power users’ defined as the top 20% of reps by utilization rate. 3. Data presented as last twelve months of publicly reporte d data as of 2Q26 & represents expenses from respective wealth management segments of all companies, if applicable. Schwab is represented on a total company basis. Wirehouse segment includes Morgan Stanley, JP Morgan, Bank of America, & Wells Fargo. Regional & IBD segment includes Ameriprise, LPL Financial, & Raymond James. Online Broker segment includes Interactive Brokers & Robinhood.
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Charles Schwab Corporation 19 Our position at the trusted center of the investing ecosystem drives diversified & durable earnings growth through the cycle.
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Charles Schwab Corporation 20 $3.1B $1.7B $1.0B $0.4B 3Q25 $3.2B $1.7B $1.1B $0.4B 4Q25 $3.1B $1.8B $1.1B $0.5B 1Q26 $3.4B $1.8B $1.2B $0.7B 2Q26 $3.5B $1.9B $1.2B $0.6B 3Q26 $6.1B $6.3B $6.5B $7.1B $7.2B NIR AMAF Trading Other 3Q26 vs. 3Q25 NIR increased 14%, reflecting higher lending balances & growth in long/short strategies AMAF grew 14% driven by strong equity markets & Managed Investing net flows Trading revenue grew 16% due to robust client trading volumes 3Q26 revenue increased 17% year-over-year to a quarterly record,… Note: Certain totals may not sum due to rounding. Other includes Bank Deposit Account fees and Other Revenue line items.
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Charles Schwab Corporation 21 Adjusted 1 GAAP $3.0B 3Q25 $3.0B 4Q25 $3.2B 1Q26 $3.2B 2Q26 $3.2B 3Q26 $3.1B $3.2B $3.3B $3.4B $3.4B …as we efficiently supported robust client engagement across the Schwab platform. GAAP expenses up 9%, reflecting strong client engagement & higher volumes Adjusted 1 expenses rose 9% 3Q26 vs. 3Q25 Note: 1. Further detail on non-GAAP financial measures and a reconciliation of such measures to reported results are included on slides 35-39 of this presentation.
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Charles Schwab Corporation 22 Schwab’s diversified model and leading scale combined to deliver record adjusted 1 earnings per share of $1.69. $1.26 $1.33 $1.37 $1.54 $1.62 3Q25 4Q25 1Q26 2Q26 3Q26 $1.31 $1.39 $1.43 $1.62 $1.69 Adjusted1 GAAP Earnings per Share ($)Pre-tax Profit Margin (%) 49.2% 50.2% 49.2% 51.9% 52.7% 3Q25 4Q25 1Q26 2Q26 3Q26 51.3% 52.2% 51.4% 54.3% 54.8% Adjusted1 GAAP Note: 1. Further detail on non-GAAP financial measures and a reconciliation of such measures to reported results are included on slides 35-39 of this presentation.
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23 3Q26 Balance Sheet Highlights Supported Client-Driven Growth – Client margin balances 1 grew to $187.9 billion as of September 30, up 67% from year-end 2025 – Demand for our PAL solution continued, as bank loan balances increased 25% versus year-end 2025 to $72.3 billion at quarter-end Sweep Cash Net Flows – Reflecting continued client demand for long/short strategies, client asset allocation decisions, and strong organic growth, transactional sweep cash 2 increased by $7.1 billion during 3Q26 to finish at $492.8 billion3 Capital Return – Repurchased 4.7 million shares of common stock for $0.5 billion Support our clients’ evolving needs Maintain a foundation of safety and soundness Drive financial outcomes through-the-cycle Balance Sheet Principles Charles Schwab Corporation Note: 1. Client margin loan balances include $60.7 billion related to certain long/short strategies as of September 30, 2026. 2. Transactional sweep cash includes bank sweep deposits, broker-dealer cash balances, other client cash held on the balance sheet (bank checking and saving s deposits, short credits related to certain client long/short strategies, and broker-dealer non-interest-bearing credits), and Bank Deposit Account balances; excludes proprietary and third-party Certificates of Deposits. 3. Short credits related to long/short margin increased $19.6 billion to $63.3 billion dur ing 3Q26.
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Charles Schwab Corporation 24 Consolidated Tier 1 Leverage Ratio +19% January 2026 common stock dividend increase YTD26 Capital Actions 9.7% 8.9% 7.3% 7.0% Sep-25 Sep-26 Our capital ratios remained strong while supporting growth & opportunistic capital return. Support ongoing business growth Common dividend payout range Seek opportunistic return of capital Capital Management Framework $3.9B Common stock repurchased $0.6B Net preferred redemption 2 Regulatory T1LR Adjusted T1LR1 Note: 1. Further detail on non-GAAP financial measures and a reconciliation of such measures to reported results are included on slides 35-39 of this presentation. September 30, 2026, ratios are preliminary. 2. Series I was redeemed on June 1, 2026; Series L was issued on Ap ril 22, 2026.
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Charles Schwab Corporation 25 Serve a Growing Number of Clients Leverage Enhanced Financial Management Capabilities Deepen Existing Client Relationships Enhance Scale & Efficiency Earnings Growth Through the Cycle Serve a Growing Number of Clients Apply Disciplined Financial Management & Capital Return We remain well positioned to drive diversified & durable earnings growth through the cycle.
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26Charles Schwab Corporation We expect to deliver ~800 bps of operating leverage in 2026 while supporting robust business momentum across the platform. Note: Metrics are YTD as of 9/30/2026. 1. Includes $60.7 billion of margin loan balances related to certain long/short strategi es. CORE NET NEW ASSETS $450B NEW BROKERAGE ACCOUNTS 3.9M MANAGED INVESTING NET FLOWS $65B MARGIN BALANCES1 $188B BANK LOANS $72B DAILY AVERAGE TRADES 10.8M 45% vs. 2025 YTD 38%15% 25% 27% 67%
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Heading into 2027, our client-centric strategy positions us to deliver earnings growth across a range of environments. Charles Schwab Corporation 27 2027 financial outlook will be shaped by a range of factors, including the macroeconomic environment, interest rates, market sentiment and client engagement Deepen client engagement across our lending, wealth, and trading solutions driving revenue growth and diversification Continue to invest in growth and efficiency to further advance our key strategic initiatives, while generating positive operating leverage Support evolving client needs with flexibility to return capital across multiple forms Serve a growing number of clients Deepen existing client relationships Enhance scale & efficiency Apply disciplined financial management and capital return
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Revenue Expenses Balance Sheet & Capital Positive operating leverage Mid-Teens EPS Growth Sustainable organic growth Diverse monetization Profitable growth Enhanced efficiency Increased durability Opportunistic capital return High-single-digit to low-double-digit revenue growth Balance sheet management + capital return 28 Our financial formula is built for durability through the cycle. Charles Schwab Corporation
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Q&A 29Charles Schwab Corporation
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Appendix 30Charles Schwab Corporation
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31Charles Schwab Corporation Net Interest Revenue +/- 25 bps Target Fed Funds Rate1 ~$250M – $300M BDA Bank Sweep Balances +/- $1B ~$40M AMAF S&P 500® +/- 1% ~$40M Client Trading 2 ~$40M +/- 100K DATs Margin Balances 3 +/- $1B ~$20M ~$40M +/- $1B of Balances ~$25M +/- 25 bps in Fed Funds Note: The "S&P 500® Index" is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI") and has been licensed for us e by Charles Schwab & Co., Inc. 1. NIR sensitivities assume static interest- earning assets as of September 30, 2026; other considerations include mix and duration of the bank investment portfolio, movements across the yield curve, and h ow quickly the fixed portfolio reprices; the sensitivity also factors in the impact of any active hedging activity and assumes a deposit beta of 0%. 2. Excludes Forge -related trading activity. 3. Excludes client margin loans related to certain long/short strategies. Select Annualized Revenue Sensitivities As of September 30, 2026
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Charles Schwab Corporation 32 ($M, EOP) 3Q25 4Q25 1Q26 2Q26 3Q26 Total Assets $465,255 $490,995 $493,319 $517,266 $520,674 Bank Deposits $239,057 $255,747 $253,041 $249,682 $244,108 Payables to Brokerage Clients $115,397 $116,341 $117,986 $123,968 $125,240 Long-term Debt $20,199 $22,199 $20,486 $22,669 $23,808 Stockholders’ Equity $49,384 $49,425 $49,234 $50,147 $51,446 Parent Liquidity $10,201 $14,872 $14,942 $11,936 $12,071 Consolidated Tier 1 Leverage Ratio * 9.7% 9.3% 8.9% 8.7% 8.9% Consolidated Adj. Tier 1 Leverage Ratio 1* 7.3% 7.1% 6.8% 6.8% 7.0% Appendix Balance Sheet (as of September 30, 2026) Note: *3Q26 is preliminary. 1. Further detail on non-GAAP financial measures and a reconciliation of such measures to reported results are included on slides 35-39 of this presentation.
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33 42% 43% 8% 7% Bank Investment Portfolio Lending Activities Cash & Equiv. Other IEA $451.5 3Q26 Avg. Interest-earning Assets ($B,%)1, 2 Bank Investment Portfolio Spotlight Fixed vs. Floating 96% Fixed / 4% Floating Securities Mix3 59% 28% 13% Agency RMBS Agency CMBS Other Duration Analysis4 1.6 Consolidated IEAs Duration (Years) Preliminary 94%+ backed by U.S. government or agency Appendix Average Interest-earning Assets & Bank Investment Portfolio (as of September 30, 2026) 3.3 Bank Investment Portfolio Duration (Years) Charles Schwab Corporation Note: 1. Bank Investment Portfolio includes available-for-sale and held-to-maturity securities within the consolidated bank inve stment portfolio but excludes cash investments; please note percentage may be rounded and therefore may not sum to 100%. 2. Lending activities is comprised of client margin debits and bank loans. 3. Total may not sum to 100% due to r ounding. “Other” includes U.S. Treasuries, corporate debt, asset-backed securities, and other investment securities as appropriate. 4. Duration is represented on an option-adjusted basis, including the impact of hedging activity, as of Septembe r 30, 2026.
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Appendix Bank Deposit Account Summary (as of September 30, 2026) 34 Mix of Average BDA Balances ($B,%) 14% 86% $68.3 $10.6 $17.6 $16.5 $17.5 $6.0 Floating Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 $0.0 $0.0 $0.0 Fixed Maturities: $57.5 (84% of total)1 | Net Rate2: 1.86% BDA Balances by Maturity, EOP ($B) Net Rate 2 3.65% 0.23% 1.43% -- 3.25% 3.78% -- Annual Revenue 3 $392M $41M $239M -- $577M $230M -- Total Balance: $68.0 Net Rate2: 2.14% Annual Revenue3: $1,479M Net Rate 3.45% 1.74% 3Q26 Revenue $83M $262M Floating Fixed Charles Schwab Corporation -- -- 4 Note: Certain totals may not sum due to rounding. Net yields calculated on an actual/360 basis. 1. Balances maturing by remai ning duration term (e.g., Year 1 maturities are balances rolling off the fixed -rate ladder over the next 12 months). 2. EOP net rate of maturities as of September 30, 2026; includes all related fees and client pay rates as of September 30, 2026. 3. Revenue figures presented on an annualized run-rate basis per the amended 2023 Insured Deposit Agreement (IDA) arrangement and net of breakage fees. 4. Revenue includes ~$4M related to Forge, all other balances and rates are IDA o nly.
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35 Appendix Non-GAAP Introduction In addition to disclosing financial results in accordance with generally accepted accounting principles in the U.S. (GAAP), this presentation contains references to the non-GAAP financial measures described below. We believe these non-GAAP financial measures provide useful supplemental information about the financial performance of the Company and facilitate meaningful comparison of Schwab’s results in the current period to both historic and future results. These non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP and may not be comparable to non-GAAP financial measures presented by other companies. Schwab’s use of non-GAAP measures is reflective of certain adjustments made to GAAP financial measures as described below. Non-GAAP Adjustment or Measure Definition Usefulness to Investors and Uses by Management Acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs Schwab adjusts certain GAAP financial measures to exclude the impact of acquisition and integration-related costs incurred as a result of the Company’s acquisitions, amortization of acquired intangible assets, restructuring costs, and, where applicable, the income tax effect of these expenses. Adjustments made to exclude amortization of acquired intangible assets are reflective of all acquired intangible assets, which were recorded as part of purchase accounting. These acquired intangible assets contribute to the Company’s revenue generation. Amortization of acquired intangible assets will continue in future periods over their remaining useful lives. We exclude acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs for the purpose of calculating certain non- GAAP measures because we believe doing so provides additional transparency of Schwab’s ongoing operations, and is useful in both evaluating the operating performance of the business and facilitating comparison of results with prior and future periods. Costs related to acquisition and integration or restructuring fluctuate based on the timing of acquisitions, integration and restructuring activities, thereby limiting comparability of results among periods, and are not representative of the costs of running the Company’s ongoing business. Amortization of acquired intangible assets is excluded because management does not believe it is indicative of the Company’s underlying operating performance. Return on tangible common equity Return on tangible common equity represents annualized adjusted net income available to common stockholders as a percentage of average tangible common equity. Tangible common equity represents common equity less goodwill, acquired intangible assets — net, and related deferred tax liabilities. Acquisitions typically result in the recognition of significant amounts of goodwill and acquired intangible assets. We believe return on tangible common equity may be useful to investors as a supplemental measure to facilitate assessing capital efficiency and returns relative to the composition of Schwab’s balance sheet. Adjusted Tier 1 Leverage Ratio Adjusted Tier 1 Leverage Ratio represents the Tier 1 Leverage Ratio as prescribed by bank regulatory guidance for the consolidated company and for Charles Schwab Bank, SSB (CSB), adjusted to reflect the inclusion of accumulated other comprehensive income (AOCI) in the ratio. Inclusion of the impacts of AOCI in the Company’s Tier 1 Leverage Ratio provides additional information regarding the Company’s current capital position. We believe Adjusted Tier 1 Leverage Ratio may be useful to investors as a supplemental measure of the Company’s capital levels. The Company also uses adjusted diluted EPS and return on tangible common equity as components of performance criteria for emp loyee bonus and certain executive management incentive compensation arrangements. The Compensation Committee of CSC’s Board of Directors maintains discretion in evaluating performance against these criteria. Additionally, the Company uses adjusted Tier 1 Leverage Ratio in managing capital, including its use of the measure as its long-term operating objective. Charles Schwab Corporation
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Three Months Ended, Three Months Ended, Three Months Ended, Three Months Ended, Three Months Ended, September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Total Expenses Excluding Interest Net Income Total Expenses Excluding Interest Net Income Total Expenses Excluding Interest Net Income Total Expenses Excluding Interest Net Income Total Expenses Excluding Interest Net Income Total expenses excluding interest (GAAP), Net income (GAAP) $ 3,394 $ 2,906 $ 3,403 $ 2,800 $ 3,294 $ 2,479 $ 3,156 $ 2,459 $ 3,114 $ 2,358 Amortization of acquired intangible assets (141) 141 (142) 142 (132) 132 (127) 127 (127) 127 Acquisition and integration-related costs (10) 10 (28) 28 (11) 11 - - - - Income tax effects (1) N/A (36) N/A (40) N/A (34) N/A (30) N/A (29) Adjusted total expenses (Non-GAAP), Adjusted net income (Non-GAAP) $ 3,243 $ 3,021 $ 3,233 $ 2,930 $ 3,151 $ 2,588 $ 3,029 $ 2,556 $ 2,987 $ 2,456 36 Appendix Non-GAAP Reconciliation: Adjusted total expenses and Adjusted net income (In millions, except ratios and per share amounts) Charles Schwab Corporation Note: 1. The income tax effects of the non-GAAP adjustments are determined using an effective tax rate reflecting the exclusion of non -deductible acquisition costs and are used to present the acquisition and integration -related costs, amortization of acquired intangible assets, and restructuring costs on an after-tax basis.
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Three Months Ended, Three Months Ended, Three Months Ended, Three Months Ended, Three Months Ended, September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Amount % of Total Net Revenues Amount % of Total Net Revenues Amount % of Total Net Revenues Amount % of Total Net Revenues Amount % of Total Net Revenues Income before taxes on income (GAAP), Pre-tax profit margin (GAAP) $ 3,777 52.7% $ 3,669 51.9% $ 3,188 49.2% $ 3,180 50.2% $ 3,021 49.2% Amortization of acquired intangible assets 141 2.0% 142 2.0% 132 2.0% 127 2.0% 127 2.1% Acquisition and integration- related costs 10 0.1% 28 0.4% 11 0.2% - - - - Adjusted income before taxes on income (Non-GAAP), Adjusted pre-tax profit margin (Non-GAAP) $ 3,928 54.8% $ 3,839 54.3% $ 3,331 51.4% $ 3,307 52.2% $ 3,148 51.3% 37 Appendix Non-GAAP Reconciliation: Adjusted income before taxes on income and Adjusted pre-tax profit margin (In millions, except ratios) Charles Schwab Corporation
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Three Months Ended, Three Months Ended, Three Months Ended, Three Months Ended, Three Months Ended, September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Amount Diluted EPS Amount Diluted EPS Amount Diluted EPS Amount Diluted EPS Amount Diluted EPS Net income available to common stockholders (GAAP), Earnings per common share — diluted (GAAP) $ 2,811 $ 1.62 $ 2,681 $ 1.54 $ 2,397 $ 1.37 $ 2,367 $ 1.33 $ 2,277 $ 1.26 Amortization of acquired intangible assets 141 .08 142 .08 132 .07 127 .08 127 .07 Acquisition and integration-related costs 10 .01 28 .02 11 .01 - - - - Income tax effects (36) (.02) (40) (.02) (34) (.02) (30) (.02) (29) (.02) Adjusted net income available to common stockholders (Non-GAAP), Adjusted earnings per common share - diluted (Non-GAAP) $ 2,926 $ 1.69 $ 2,811 $ 1.62 $ 2,506 $ 1.43 $ 2,464 $ 1.39 $ 2,375 $ 1.31 38 Appendix Non-GAAP Reconciliation: Adjusted net income to common stockholders and Adjusted diluted EPS Charles Schwab Corporation (In millions, per share amounts)
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39 Appendix Non-GAAP Reconciliation: Consolidated Adjusted Tier 1 Leverage Ratio (In millions, except ratios) Charles Schwab Corporation Preliminary September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Tier 1 Leverage Ratio (GAAP) 8.9% 8.7% 8.9% 9.3% 9.7% Tier 1 Capital $ 44,782 $ 42,751 $ 41,894 $ 42,844 $ 43,491 Plus: AOCI adjustment (10,389) (10,225) (10,631) (11,017) (11,826) Adjusted Tier 1 Capital 34,393 32,526 31,263 31,827 31,665 Average assets with regulatory adjustments 501,735 489,718 471,426 462,473 447,094 Plus: AOCI adjustment (9,894) (10,249) (10,703) (11,333) (12,176) Adjusted average assets with regulatory adjustments $ 491,841 $ 479,469 $ 460,723 $ 451,140 $ 434,918 Adjusted Tier 1 Leverage Ratio (non-GAAP) 7.0% 6.8% 6.8% 7.1% 7.3%
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Charles Schwab Corporation Abbreviations: Adj. = Adjusted AD = AdvisorDirect AI = Artificial intelligence AMAF = Asset management and administration fees AOCI = Accumulated other comprehensive income Avg. = Average B = Billion BDA = Bank deposit account Bps = Basis points Cash & Equiv. = Cash and equivalents CMBS = Commercial mortgage-backed security Combo = Combination Crypto = Cryptocurrency DATs = Daily average trades EOP = End of Period EOY = End of year EPS = Earnings per share FC = Financial consultant FY = Full year GAAP = Generally accepted accounting principles Gen = Generation H = Half HH = Household IBD = Independent broker dealer IEA = Interest-earning assets IPO = Initial public offering K = Thousand LTM = Last twelve months M = Million MTD = Month-to-date MI = Managed investing N/A = Not applicable NIM = Net Interest Margin NIR = Net interest revenue NNA = Net new assets NTF = New to firm PAL = Pledged Asset Line TM Pts. = Points Q = Quarter QTD = Quarter-to-date 40 Glossary RIA = Registered investment advisor RMBS = Residential mortgage-backed security ROCA = Revenue on client assets Secs. = Seconds SWA = Schwab Wealth Advisory SAN = Schwab Advisor Network® T = Trillion T1LR = Tier 1 leverage ratio TOA = Transfer of assets TOS = thinkorswim ® UHNW = Ultra high net worth WA = Wealth advisor WTP = Willingness to pay YTD = Year-to-date
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Fall Business Update October 15, 2026