Earnings release
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SCHWAB DELIVERS RECORD NET NEW ASSETS & EARNINGS Record Quarterly Core Net New Assets of $190.4 Billion, Up 38% Year-Over-Year 3Q Net Revenues Reached a Record $7.2 Billion, Up 17% Year-Over-Year Record GAAP Earnings Per Share of $1.62; $1.69 Adjusted (1) – Up 29% versus 3Q25 WESTLAKE, Texas, October 15, 2026 – The Charles Schwab Corporation reported net income for the third quarter totaling $2.9 billion, or earnings per share of $1.62. Excluding $151 million of pre-tax transaction-related costs, adjusted (1) net income and earnings per share equaled $3.0 billion and $1.69, respectively. Client Driven Growth $190.4B 3Q26 Core Net New Assets “During the third quarter, clients opened 1.2 million new brokerage accounts and entrusted Schwab with $190.4 billion in core net new assets – an annualized growth rate of 5.8%. We are delivering new capabilities and solutions, while our leading value proposition continues to resonate with investors and RIAs.” President & CEO Rick Wurster Deepen Client Relationships 55% 3Q26 Schwab Wealth AdvisoryTM Net Flows Growth vs. 3Q25 “As investing plays an increasingly central role in people’s financial lives, clients continue to turn to Schwab for our broad set of wealth, trading, and banking capabilities. During the quarter, Pledged Asset LineTM balances grew to $37.3 billion, up 59% year-over-year, while net flows into Schwab Wealth AdvisoryTM increased 55%.” President & CEO Rick Wurster Diversified Revenue Growth 17% 3Q26 Revenue Growth vs. 3Q25 “Deeper client engagement across Schwab's platform continues to broaden and strengthen our revenue model, helping our third quarter revenue increase 17% year-over-year to a record $7.2 billion.” CFO Mike Verdeschi Strong Earnings Momentum 29% 3Q26 GAAP EPS Growth vs. 3Q25 “Our diversified business model, continued focus on meeting clients’ evolving needs, and industry leading scale combined to drive year-over-year GAAP earnings growth of 29% to a record $1.62, or $1.69 on an adjusted (1) basis.” CFO Mike Verdeschi 3Q26 Client and Business Highlights • Total client assets increased 15% year-over-year to $13.33 trillion • Core net new assets totaled $190.4 billion, up 38% versus 3Q25 • New brokerage account openings equaled 1.2 million, helping bring total client accounts to 48.6 million • Managed Investing Solutions net flows grew 22% versus 3Q25 • Bank loan balances equaled $72.3 billion at September month-end, up 35% year-over-year • Margin loan balances increased 14% quarter-over-quarter to $187.9 billion at quarter-end, including $60.7 billion related to long/short strategies (2) • Daily average trading volume equaled 10.7 million – up 44% versus 3Q25 • Announced Single Stock Futures on the thinkorswim® trading platform and plans to expand digital assets available in Schwab CryptoTM • Introduced Charley, a new AI-powered assistant that provides U.S. retail clients with conversational access to Schwab’s tools and insights • Partnered with Anthropic to bring Claude for Financial Advisors directly to the independent RIAs Schwab serves • Schwab was recognized as one of Fortune’s 2026 Most Innovative Companies (3) - 1 -
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Three Months Ended September 30, % Nine Months Ended September 30, % Financial Highlights 2026 2025 Change 2026 2025 Change Net revenues (in millions) $ 7,171 $ 6,135 17% $ 20,725 $ 17,585 18% Net income (in millions) GAAP $ 2,906 $ 2,358 23% $ 8,185 $ 6,393 28% Adjusted $ 3,021 $ 2,456 23% $ 8,539 $ 6,686 28% Diluted earnings per common share GAAP $ 1.62 $ 1.26 29% $ 4.53 $ 3.33 36% Adjusted $ 1.69 $ 1.31 29% $ 4.73 $ 3.49 36% Pre-tax profit margin GAAP 52.7% 49.2% 51.3% 47.1% Adjusted 54.8% 51.3% 53.5% 49.3% Return on average common stockholders’ equity (annualized) 25% 21% 24% 20% Return on tangible common equity (annualized) 44% 38% 42% 37% Note: Items labeled “adjusted” are non-GAAP financial measures; further details are included on pages 10-12 of this release. All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding. 3Q26 Financial Commentary • Quarterly net revenues grew year-over-year by 17% to a record $7.2 billion • Net interest margin expanded quarter-over-quarter to 3.04% • Client transactional sweep cash balances ended September at $492.8 billion, an increase of $7.1 billion versus the prior quarter-end, reflecting continued demand for long/short strategies and organic growth, partially offset by client asset allocation decisions • Average interest-earning assets for the quarter equaled $451.5 billion, up 8% versus 3Q25 • Asset management and administration fees grew by 14% year-over-year to $1.9 billion, powered by the firm’s organic growth and investors’ increased utilization of our wealth and asset management solutions • Clients remained engaged with the market, driving trading revenue of $1.2 billion, up 16% year-over-year • GAAP expenses for the quarter increased 9% year-over-year; excluding acquisition and integration-related costs and the amortization of acquired intangibles of $151 million, adjusted total expenses (1) were also up 9% relative to 3Q25 • Capital ratios across the firm remained strong – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) of 8.9% and 7.0%, respectively • Repurchased 4.7 million shares of our common stock for $0.5 billion during the quarter (1) Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-12 of this release. (2) Client margin loans and short credits related to certain long/short strategies utilized by RIAs are excluded from interest-earning assets and company funding sources. (3) Fortune America’s Most Innovative Companies 2026 was given on March 25, 2026, and expires on March 24, 2027. The criteria, evaluation, and ranking were determined by Fortune, partnered with Statista. Visit https://www.fortune.com/ranking/americas-most-innovative-companies/ for more information. Schwab paid a licensing fee to Fortune for use of the award and logos. Fall Business Update The company will host its Fall Business Update for institutional investors this morning from 7:30 a.m. - 8:30 a.m. CT, 8:30 a.m. - 9:30 a.m. ET. Registration for this Update webcast is accessible at https://www.aboutschwab.com/schwabevents. - 2 -
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Forward-Looking Statements This press release contains forward-looking statements relating to the company’s diversified business model, scale, capabilities, solutions, value proposition, and client engagement. These forward-looking statements reflect management’s expectations as of the date hereof. Achievement of these expectations and objectives is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations. Important factors that may cause such differences are described in the company’s most recent reports on Form 10-K and Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company’s website (https://www.aboutschwab.com/financial-reports) and on the Securities and Exchange Commission’s website (https://www.sec.gov). The company makes no commitment to update any forward- looking statements. About Charles Schwab The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 40.3 million active brokerage accounts, 5.9 million workplace plan participant accounts, 2.4 million banking accounts, and $13.33 trillion in client assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor ServicesTM. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com. Contact Information MEDIA Mayura Hooper, 415-667-1525 public.relations@schwab.com INVESTORS/ANALYSTS Kartik Sharma, 817-662-7648 investor.relations@schwab.com - 3 -
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THE CHARLES SCHWAB CORPORATION Consolidated Statements of Income (In millions, except per share amounts) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Net Revenues Interest revenue $ 4,473 $ 3,956 $ 12,581 $ 11,500 Interest expense (997) (906) (2,604) (2,922) Net interest revenue 3,476 3,050 9,977 8,578 Asset management and administration fees 1,913 1,673 5,497 4,773 Trading revenue 1,158 995 3,462 2,855 Bank deposit account fees 345 247 973 739 Other 279 170 816 640 Total net revenues 7,171 6,135 20,725 17,585 Expenses Excluding Interest Compensation and benefits 1,756 1,653 5,358 4,861 Professional services 325 293 935 853 Occupancy and equipment 316 280 902 824 Advertising and market development 114 101 326 305 Communications 172 149 533 478 Depreciation and amortization 196 212 595 644 Amortization of acquired intangible assets 141 127 415 385 Regulatory fees and assessments 73 59 211 225 Other 301 240 816 731 Total expenses excluding interest 3,394 3,114 10,091 9,306 Income before taxes on income 3,777 3,021 10,634 8,279 Taxes on income 871 663 2,449 1,886 Net Income 2,906 2,358 8,185 6,393 Preferred stock dividends and other 95 81 296 343 Net Income Available to Common Stockholders $ 2,811 $ 2,277 $ 7,889 $ 6,050 Weighted-Average Common Shares Outstanding: Basic 1,728 1,806 1,736 1,815 Diluted 1,733 1,811 1,741 1,820 Earnings Per Common Shares Outstanding: Basic $ 1.63 $ 1.26 $ 4.54 $ 3.33 Diluted $ 1.62 $ 1.26 $ 4.53 $ 3.33 - 4 -
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THE CHARLES SCHWAB CORPORATION Financial and Operating Highlights (Unaudited) Q3-26 % change 2026 2025 vs. vs. Third Second First Fourth Third (In millions, except per share amounts and as noted) Q3-25 Q2-26 Quarter Quarter Quarter Quarter Quarter Net Revenues Net interest revenue 14% 4% $ 3,476 $ 3,357 $ 3,144 $ 3,172 $ 3,050 Asset management and administration fees 14% 5% 1,913 1,825 1,759 1,733 1,673 Trading revenue 16% (5) % 1,158 1,215 1,089 1,066 995 Bank deposit account fees 40% 4% 345 333 295 238 247 Other 64% (18) % 279 342 195 127 170 Total net revenues 17% 1% 7,171 7,072 6,482 6,336 6,135 Expenses Excluding Interest Compensation and benefits 6% (2) % 1,756 1,790 1,812 1,630 1,653 Professional services 11% 6% 325 307 303 344 293 Occupancy and equipment 13% 5% 316 301 285 293 280 Advertising and market development 13% 3% 114 111 101 115 101 Communications 15% (13) % 172 198 163 142 149 Depreciation and amortization (8) % (1) % 196 198 201 206 212 Amortization of acquired intangible assets 11% (1) % 141 142 132 127 127 Regulatory fees and assessments 24% 16% 73 63 75 62 59 Other 25% 3% 301 293 222 237 240 Total expenses excluding interest 9% — 3,394 3,403 3,294 3,156 3,114 Income before taxes on income 25% 3% 3,777 3,669 3,188 3,180 3,021 Taxes on income 31% — 871 869 709 721 663 Net Income 23% 4% 2,906 2,800 2,479 2,459 2,358 Preferred stock dividends and other 17% (20) % 95 119 82 92 81 Net Income Available to Common Stockholders 23% 5% $ 2,811 $ 2,681 $ 2,397 $ 2,367 $ 2,277 Earnings per common share: Basic 29% 5% $ 1.63 $ 1.55 $ 1.37 $ 1.34 $ 1.26 Diluted 29% 5% $ 1.62 $ 1.54 $ 1.37 $ 1.33 $ 1.26 Dividends declared per common share 19% — $ .32 $ .32 $ .32 $ .27 $ .27 Weighted-average common shares outstanding: Basic (4) % — 1,728 1,735 1,746 1,772 1,806 Diluted (4) % — 1,733 1,739 1,752 1,777 1,811 Performance Measures Pre-tax profit margin 52.7% 51.9% 49.2% 50.2% 49.2% Return on average common stockholders’ equity (annualized) (1) 25% 25% 23% 22% 21% Financial Condition (at quarter end, in billions) Cash and cash equivalents 20% (10) % $ 36.7 $ 40.6 $ 45.0 $ 46.0 $ 30.6 Cash and investments segregated (33) % (4) % 31.8 33.0 39.8 42.9 47.8 Receivables from brokers, dealers, and clearing organizations N/M 24% 27.2 22.0 11.8 7.2 4.7 Receivables from brokerage clients — net 37% 4% 128.1 122.8 106.2 104.7 93.8 Available for sale securities (5) % (6) % 59.0 62.5 61.1 62.4 62.3 Held to maturity securities (7) % (3) % 126.6 130.6 131.7 134.0 136.7 Bank loans — net 35% 8% 72.3 67.0 60.9 58.0 53.6 Total assets 12% 1% 520.7 517.3 493.3 491.0 465.3 Bank deposits 2% (2) % 244.1 249.7 253.0 255.7 239.1 Payables to brokers, dealers, and clearing organizations 108% 6% 46.5 43.8 28.1 25.7 22.4 Payables to brokerage clients 8% 1% 125.2 124.0 118.0 116.3 115.4 Accrued expenses and other liabilities 18% 7% 13.4 12.5 12.0 12.8 11.4 Other short-term borrowings 118% 2% 14.2 13.9 12.5 6.9 6.5 Federal Home Loan Bank borrowings 122% N/M 2.0 0.5 — 1.9 0.9 Long-term debt 18% 5% 23.8 22.7 20.5 22.2 20.2 Total liabilities 13% — 469.2 467.1 444.1 441.6 415.9 Stockholders’ equity 4% 3% 51.4 50.1 49.2 49.4 49.4 Total liabilities and stockholders’ equity 12% 1% 520.7 517.3 493.3 491.0 465.3 Other Full-time equivalent employees (at quarter end, in thousands) 4% 1% 33.9 33.7 33.5 33.0 32.7 Capital expenditures — purchases of equipment, office facilities, and property, net (in millions) (2) 110% (60) % $ 319 $ 792 $ 173 $ 158 $ 152 Expenses excluding interest as a percentage of average client assets (annualized) 0.10% 0.11% 0.11% 0.11% 0.11% Clients’ Daily Average Trades (DATs) (in thousands) 44% (10) % 10,687 11,920 9,899 8,274 7,421 Number of Trading Days 1% 3% 64.0 62.0 61.0 63.0 63.5 Revenue Per Trade (3) (20) % 3% $ 1.69 $ 1.64 $ 1.80 $ 2.05 $ 2.11 (1) Return on average common stockholders’ equity is calculated using net income available to common stockholders divided by average common stockholders’ equity. (2) Second quarter of 2026 includes incremental capital expenditures of $633 million related to a multi-year software license agreement with a corresponding liability recognized in long-term debt. (3) Revenue per trade is calculated as trading revenue divided by the product of DATs and the number of trading days. N/M Not meaningful. Percentage changes greater than 200% are presented as not meaningful. - 5 -
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THE CHARLES SCHWAB CORPORATION Net Interest Revenue Information (In millions, except ratios or as noted) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Average Balance Interest Revenue/ Expense Average Yield/ Rate Average Balance Interest Revenue/ Expense Average Yield/ Rate Average Balance Interest Revenue/ Expense Average Yield/ Rate Average Balance Interest Revenue/ Expense Average Yield/ Rate Interest-earning assets Cash and cash equivalents $ 34,525 $ 317 3.59% $ 24,298 $ 264 4.26% $ 32,577 $ 883 3.58% $ 27,571 $ 897 4.29% Cash and investments segregated 31,251 289 3.62% 46,046 494 4.20% 38,795 1,060 3.60% 44,104 1,412 4.22% Receivables from brokerage clients (1) 123,061 1,792 5.70% 87,292 1,454 6.52% 113,307 4,900 5.70% 82,992 4,154 6.60% Available for sale securities (2) 65,149 379 2.31% 69,794 360 2.05% 65,422 1,063 2.16% 77,324 1,198 2.06% Held to maturity securities (2) 128,026 553 1.72% 137,672 587 1.70% 130,433 1,690 1.72% 141,032 1,811 1.71% Bank loans 69,526 775 4.43% 51,849 557 4.27% 64,249 2,095 4.35% 48,882 1,568 4.28% Total interest-earning assets 451,538 4,105 3.58% 416,951 3,716 3.51% 444,783 11,691 3.48% 421,905 11,040 3.46% Securities lending revenue 238 183 507 339 Other interest revenue (1,3) 130 57 383 121 Total interest-earning assets $ 451,538 $ 4,473 3.90% $ 416,951 $ 3,956 3.74% $ 444,783 $ 12,581 3.75% $ 421,905 $ 11,500 3.61% Funding sources Bank deposits $ 244,309 $ 139 0.23% $ 229,281 $ 248 0.43% $ 244,451 $ 371 0.20% $ 237,488 $ 1,010 0.57% Payables to brokers, dealers, and clearing organizations 42,113 376 3.50% 19,131 188 3.84% 33,165 869 3.46% 16,673 492 3.89% Payables to brokerage clients (1) 106,900 59 0.22% 96,064 67 0.28% 106,952 174 0.22% 92,909 176 0.25% Other short-term borrowings 14,349 148 4.06% 7,593 87 4.56% 11,531 351 4.04% 7,314 256 4.68% Federal Home Loan Bank borrowings 929 10 3.97% 7,103 79 4.35% 776 23 3.90% 9,180 322 4.62% Long-term debt 23,572 272 4.52% 20,204 207 4.01% 22,206 701 4.16% 21,029 625 3.92% Total interest-bearing liabilities 432,172 1,004 0.91% 379,376 876 0.91% 419,081 2,489 0.79% 384,593 2,881 0.99% Non-interest-bearing funding sources 19,366 37,575 25,702 37,312 Other interest expense (1,3) (7) 30 115 41 Total funding sources $ 451,538 $ 997 0.86% $ 416,951 $ 906 0.86% $ 444,783 $ 2,604 0.78% $ 421,905 $ 2,922 0.92% Net interest revenue $ 3,476 3.04% $ 3,050 2.88% $ 9,977 2.97% $ 8,578 2.69% (1) Beginning in the fourth quarter of 2025, average balances of margin loans and short credits related to client long/short strategies from which the Company earns a fixed net yield are excluded from interest-earning assets and funding sources. Also beginning in the fourth quarter of 2025, related interest revenue and expense were moved from receivables from brokerage clients and payables to brokerage clients, respectively, to other interest revenue and other interest expense, respectively. Amounts and average yields have been reclassified and recalculated for 2025 periods to reflect these changes. Average margin loans related to these client strategies totaled $51.4 billion and $33.0 billion for the three and nine months ended September 30, 2026, respectively, compared to $2.8 billion and $1.3 billion for the same periods in 2025. Average short credits related to these client strategies totaled $53.3 billion and $34.2 billion for the three and nine months ended September 30, 2026, respectively, compared to $2.8 billion and $1.3 billion for the same periods in 2025. (2) Amounts have been calculated based on amortized cost. (3) Beginning in the second quarter of 2026, the net fixed yield earned on client long/short strategies is presented in other interest revenue; amounts for periods prior to the three months ended June 30, 2026 have not been recast as the impact of this change was not material. - 6 -
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THE CHARLES SCHWAB CORPORATION Asset Management and Administration Fees Information (In millions, except ratios or as noted) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Average Client Assets Revenue Average Fee Average Client Assets Revenue Average Fee Average Client Assets Revenue Average Fee Average Client Assets Revenue Average Fee Schwab money market funds $ 699,067 $ 481 0.27% $ 663,218 $ 458 0.27% $ 696,173 $ 1,422 0.27% $ 643,168 $ 1,318 0.27% Schwab equity and bond funds, exchange-traded funds (ETFs), and collective trust funds (CTFs) 943,891 167 0.07% 735,519 132 0.07% 881,581 470 0.07% 685,300 376 0.07% Mutual Fund OneSource ® and other no- transaction-fee funds (NTFs) 486,893 277 0.23% 443,660 259 0.23% 479,690 812 0.23% 384,614 699 0.24% Other third-party mutual funds, ETFs, and alternatives (1) 696,598 126 0.07% 639,677 112 0.07% 680,066 358 0.07% 637,610 344 0.07% Total mutual funds, ETFs, CTFs, and alternatives (1,2) $ 2,826,449 $ 1,051 0.15% $ 2,482,074 $ 961 0.15% $ 2,737,510 $ 3,062 0.15% $ 2,350,692 $ 2,737 0.16% Managed investing solutions (2) Fee-based $ 801,949 $ 761 0.38% $ 654,220 $ 619 0.38% $ 764,516 $ 2,142 0.37% $ 613,302 $ 1,777 0.39% Non-fee-based 165,151 — — 127,592 — — 156,678 — — 122,920 — — Total managed investing solutions $ 967,100 $ 761 0.31% $ 781,812 $ 619 0.31% $ 921,194 $ 2,142 0.31% $ 736,222 $ 1,777 0.32% Other balance-based fees (1,3) 1,020,380 70 0.03% 900,385 66 0.03% 991,943 209 0.03% 849,876 191 0.03% Other (4) 31 27 84 68 Total asset management and administration fees $ 1,913 $ 1,673 $ 5,497 $ 4,773 (1) Beginning in the first quarter of 2026, alternative investments and related revenue were moved from other balance-based fees to other third-party mutual funds, ETFs, and alternatives. Prior period amounts and average fees have been reclassified and recalculated to reflect this change. (2) Managed investing solutions includes managed portfolios, specialized strategies, and customized investment advice such as Schwab Wealth AdvisoryTM, Schwab Managed PortfoliosTM, Managed Account Select®, Schwab Advisor Network®, Windhaven Strategies®, ThomasPartners® Strategies, Wasmer Schroeder Strategies®, Schwab Index Advantage advised retirement plan balances, Schwab Intelligent Portfolios®, Institutional Intelligent Portfolios, Schwab Intelligent Portfolios Premium, Schwab Wealth Portfolios™, AdvisorDirect®, Essential Portfolios, Selective Portfolios, and Personalized Portfolios; as well as legacy non-fee managed investing solutions including Schwab Advisor Source and certain retirement plan balances. Average client assets for managed investing solutions may also include the asset balances contained in the mutual fund and/or ETF categories listed above. For the total end of period view, please see the Monthly Activity Report. (3) Includes various asset-related fees, such as trust fees, 401(k) recordkeeping fees, and mutual fund clearing fees and other service fees. (4) Includes miscellaneous service and transaction fees, including fees relating to mutual funds and ETFs that are not balance-based. - 7 -
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THE CHARLES SCHWAB CORPORATION Growth in Client Assets and Accounts (Unaudited) Q3-26 % Change 2026 2025 vs. vs. Third Second First Fourth Third (In billions, at quarter end, except as noted) Q3-25 Q2-26 Quarter Quarter Quarter Quarter Quarter Assets in client accounts Schwab One®, certain cash equivalents, and bank deposits 20% 3% $ 428.5 $ 415.4 $ 390.5 $ 379.5 $ 357.1 Bank deposit account balances (13) % (4) % 68.0 70.6 73.5 76.2 78.5 Proprietary mutual funds (Schwab Funds® and Laudus Funds®) and CTFs Money market funds 5% 1% 698.7 690.5 700.8 693.8 666.4 Equity and bond funds and CTFs (1) 17% 2% 316.0 311.2 271.8 277.4 269.7 Total proprietary mutual funds and CTFs 8% 1% 1,014.7 1,001.7 972.6 971.2 936.1 Mutual Fund Marketplace® (2) Mutual Fund OneSource® and other NTF funds — (3) % 472.9 485.7 443.3 454.2 473.5 Mutual fund clearing services 2% (2) % 327.3 334.3 311.1 327.7 320.2 Other third-party mutual funds 9% (1) % 1,350.8 1,366.0 1,263.7 1,274.3 1,237.2 Total Mutual Fund Marketplace 6% (2) % 2,151.0 2,186.0 2,018.1 2,056.2 2,030.9 Total mutual fund assets 7% (1) % 3,165.7 3,187.7 2,990.7 3,027.4 2,967.0 Exchange-traded funds Proprietary ETFs (1) 27% 4% 605.1 583.7 512.6 495.3 476.0 Other third-party ETFs 27% 3% 3,046.7 2,959.7 2,579.8 2,527.5 2,395.7 Total ETF assets 27% 3% 3,651.8 3,543.4 3,092.4 3,022.8 2,871.7 Equity and other securities 16% 3% 5,383.2 5,228.4 4,566.9 4,722.6 4,624.7 Fixed income securities 4% 2% 823.9 804.5 780.6 786.8 792.1 Margin loans outstanding 93% 14% (187.9) (165.1) (126.7) (112.3) (97.2) Total client assets 15% 2% $ 13,333.2 $ 13,084.9 $ 11,767.9 $ 11,903.0 $ 11,593.9 Client assets by business Investor Services (3) 14% 2% $ 7,487.3 $ 7,343.0 $ 6,566.4 $ 6,707.5 $ 6,577.2 Advisor Services 17% 2% 5,845.9 5,741.9 5,201.5 5,195.5 5,016.7 Total client assets 15% 2% $ 13,333.2 $ 13,084.9 $ 11,767.9 $ 11,903.0 $ 11,593.9 Net growth in assets in client accounts (for the quarter ended) Net new assets by business Investor Services (3) 37% 88% $ 72.3 $ 38.5 $ 54.1 $ 60.4 $ 52.7 Advisor Services 47% 50% 120.1 80.2 85.8 97.8 81.7 Total net new assets 43% 62% $ 192.4 $ 118.7 $ 139.9 $ 158.2 $ 134.4 Net market gains (losses) 55.9 1,198.3 (275.0) 150.9 702.2 Net growth (decline) $ 248.3 $ 1,317.0 $ (135.1) $ 309.1 $ 836.6 New brokerage accounts (in thousands, for the quarter ended) 9% (10) % 1,243 1,388 1,299 1,268 1,143 Client accounts (in thousands) Active brokerage accounts 6% 1% 40,260 39,802 39,099 38,506 37,963 Banking accounts 13% 3% 2,425 2,352 2,281 2,214 2,150 Workplace Plan Participant Accounts (4) 4% — 5,868 5,888 5,844 5,740 5,619 (1) Includes balances held on and off the Schwab platform. As of September 30, 2026, off-platform equity and bond funds, CTFs, and ETFs were $55.0 billion, $4.9 billion, and $223.5 billion, respectively. (2) Excludes all proprietary mutual funds and ETFs. (3) Third quarter of 2026 includes net inflows of $2.0 billion from off-platform Schwab Bank Retail Certificates of Deposit (CDs). Second quarter of 2026 includes net outflows of $1.1 billion from off-platform Schwab Bank Retail CDs. First quarter of 2026 includes net outflows of $0.1 billion from off-platform Schwab Bank Retail CDs. Fourth quarter of 2025 includes net outflows of $5.7 billion from off-platform Schwab Bank Retail CDs. Third quarter of 2025 includes net outflows of $3.1 billion from off-platform Schwab Bank Retail CDs. (4) Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business. - 8 -
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The Charles Schwab Corporation Monthly Activity Report For September 2026 2025 2026 Change Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Mo. Yr. Number of Trading Days 21.0 23.0 18.5 21.5 20.0 19.0 22.0 21.0 20.0 21.0 22.0 21.0 21.0 Market Indices (at month end) Dow Jones Industrial Average® 46,398 47,563 47,716 48,063 48,892 48,978 46,342 49,652 51,032 52,319 52,485 53,186 50,906 (4)% 10% Nasdaq Composite® 22,660 23,725 23,366 23,242 23,462 22,668 21,591 24,892 26,973 26,214 25,374 26,371 26,861 2% 19% Standard & Poor’s® 500 6,688 6,840 6,849 6,846 6,939 6,879 6,529 7,209 7,580 7,499 7,490 7,686 7,652 — 14% Client Assets (in billions of dollars) Beginning Client Assets 11,228.1 11,593.9 11,828.0 11,834.3 11,903.0 12,148.5 12,220.3 11,767.9 12,605.3 13,135.3 13,084.9 13,042.5 13,410.0 Net New Assets (1) 45.4 41.6 38.7 77.9 27.6 32.5 79.8 6.7 49.9 62.1 60.1 64.7 67.6 4% 49% Net Market Gains (Losses) 320.4 192.5 (32.4) (9.2) 217.9 39.3 (532.2) 830.7 480.1 (112.5) (102.5) 302.8 (144.4) Total Client Assets (at month end) 11,593.9 11,828.0 11,834.3 11,903.0 12,148.5 12,220.3 11,767.9 12,605.3 13,135.3 13,084.9 13,042.5 13,410.0 13,333.2 (1)% 15% Core Net New Assets (1,2) 46.2 44.4 40.4 79.1 27.8 32.5 79.7 7.2 49.9 62.7 58.1 64.8 67.5 4% 46% Receiving Ongoing Advisory Services (at month end) Investor Services 792.5 807.6 817.9 824.8 849.5 866.8 841.3 895.0 925.8 929.8 933.7 956.4 947.3 (1)% 20% Advisor Services 5,016.7 5,106.1 5,155.9 5,195.5 5,311.7 5,394.3 5,201.5 5,525.7 5,716.0 5,741.9 5,763.1 5,903.0 5,845.9 (1)% 17% Client Accounts (at month end, in thousands) Active Brokerage Accounts 37,963 38,145 38,266 38,506 38,730 38,925 39,099 39,300 39,536 39,802 39,940 40,090 40,260 — 6% Banking Accounts 2,150 2,172 2,189 2,214 2,239 2,258 2,281 2,305 2,329 2,352 2,381 2,407 2,425 1% 13% Workplace Plan Participant Accounts (3) 5,619 5,696 5,730 5,740 5,793 5,829 5,844 5,864 5,886 5,888 5,915 5,910 5,868 (1)% 4% Client Activity New Brokerage Accounts (in thousands) 384 429 365 474 476 395 428 437 461 490 417 424 402 (5)% 5% Client Daily Average Trades (DATs) (in thousands) 7,832 8,617 8,459 7,746 9,512 9,922 10,232 10,328 11,813 13,615 11,648 9,821 10,547 7% 35% Derivative Trades as a Percentage of Total Trades 22.3% 23.8% 21.7% 21.4% 20.1% 20.1% 20.4% 21.4% 19.8% 17.7% 20.6% 24.2% 20.5% (370) bp (180) bp Margin Balances at month end (in billions of dollars) (4) 97.2 105.6 110.1 112.3 116.3 120.6 126.7 136.0 154.6 165.1 169.9 177.6 187.9 6% 93% Schwab Trading Activity IndexTM (STAX) (5) 46.1 48.1 48.8 48.5 50.0 57.3 56.0 50.1 55.1 59.1 59.8 57.5 58.9 2% 28% Selected Balances (in billions of dollars) Average Interest-Earning Assets (6) 419.8 428.3 429.1 436.0 441.7 434.2 436.8 444.6 442.0 448.4 449.9 453.0 453.5 — 8% Transactional Sweep Cash (4,7) (at month end) 425.6 428.8 427.5 453.7 433.3 436.1 461.5 467.6 472.4 485.7 476.8 483.3 492.8 2% 16% Total Money Market Funds (at month end) 667.0 675.5 685.9 694.5 693.4 696.2 702.2 688.1 694.6 691.9 695.3 702.5 700.5 — 5% Client Cash as a Percentage of Client Assets (8) 9.4% 9.3% 9.4% 9.7% 9.3% 9.3% 9.9% 9.2% 8.9% 9.0% 9.0% 8.8% 8.9% 10 bp (50) bp Net Buy (Sell) Activity (in billions of dollars) (9) Mutual Funds (4.8) (6.3) (7.3) (3.6) (0.9) (2.4) (8.5) (5.7) (7.4) (10.4) (6.0) (7.0) (12.7) Exchange-Traded Funds (ETFs) 25.6 28.1 24.9 39.8 34.8 37.4 25.3 27.4 34.2 32.0 36.3 34.2 27.8 (1) Unless otherwise noted, differences between net new assets and core net new assets are net flows from off-platform Schwab Bank Retail CDs. (2) Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $25 billion) relating to a specific client, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods. (3) Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business. (4) Balances include margin loans and short credits related to certain long/short strategies from which the Company earns a fixed net yield. For the month of September 2026, margin loans totaled $60.7 billion and short credits totaled $63.3 billion. (5) For additional information regarding STAX, please visit: https://www.schwab.com/investment-research/stax/view-schwab-trading-activity-index. (6) Represents average total interest-earning assets on the Company’s balance sheet. Beginning in December 2025, average balances of margin loans and short credits related to client long/short strategies from which the Company earns a fixed net yield are excluded from average interest-earning assets. Prior period amounts have been adjusted accordingly. (7) Transactional sweep cash includes bank sweep deposits, broker-dealer cash balances, other client cash held on the balance sheet (such as bank checking and savings 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 CDs. (8) Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets; client cash excludes brokered CDs issued by Charles Schwab Bank. (9) Represents the principal value of client mutual fund and ETF transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to investment managers. Excludes money market fund transactions. - 9 -
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In addition to disclosing financial results in accordance with generally accepted accounting principles in the U.S. (GAAP), Schwab’s third quarter earnings release 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 employee 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. THE CHARLES SCHWAB CORPORATION Non-GAAP Financial Measures (In millions, except ratios and per share amounts) (Unaudited) - 10 -
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The tables below present reconciliations of GAAP measures to non-GAAP measures: Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 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 (GAAP), Net income (GAAP) $ 3,394 $ 2,906 $ 3,114 $ 2,358 $ 10,091 $ 8,185 $ 9,306 $ 6,393 Amortization of acquired intangible assets (141) 141 (127) 127 (415) 415 (385) 385 Acquisition and integration-related costs (1) (10) 10 — — (49) 49 — — Income tax effects (2) N/A (36) N/A (29) N/A (110) N/A (92) Adjusted total expenses (non-GAAP), Adjusted net income (non-GAAP) $ 3,243 $ 3,021 $ 2,987 $ 2,456 $ 9,627 $ 8,539 $ 8,921 $ 6,686 (1) Acquisition and integration-related costs for the three months ended September 30, 2026 primarily consist of compensation and benefits. Acquisition and integration-related costs for the nine months ended September 30, 2026 primarily consist of $34 million of compensation and benefits and $14 million of professional services. There were no acquisition and integration-related costs for the three and nine months ended September 30, 2025. (2) 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. N/A Not applicable. Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 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% $ 3,021 49.2% $ 10,634 51.3% $ 8,279 47.1% Amortization of acquired intangible assets 141 2.0% 127 2.1% 415 2.0% 385 2.2% Acquisition and integration-related costs 10 0.1% — — 49 0.2% — — Adjusted income before taxes on income (non-GAAP), Adjusted pre-tax profit margin (non-GAAP) $ 3,928 54.8% $ 3,148 51.3% $ 11,098 53.5% $ 8,664 49.3% Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 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 $ 2,277 $ 1.26 $ 7,889 $ 4.53 $ 6,050 $ 3.33 Amortization of acquired intangible assets 141 .08 127 .07 415 .24 385 .21 Acquisition and integration-related costs 10 .01 — — 49 .03 — — Income tax effects (36) (.02) (29) (.02) (110) (.07) (92) (.05) Adjusted net income available to common stockholders (non-GAAP), Adjusted diluted EPS (non-GAAP) $ 2,926 $ 1.69 $ 2,375 $ 1.31 $ 8,243 $ 4.73 $ 6,343 $ 3.49 THE CHARLES SCHWAB CORPORATION Non-GAAP Financial Measures (In millions, except ratios and per share amounts) (Unaudited) - 11 -
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Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Return on average common stockholders’ equity — annualized (GAAP) 25% 21% 24% 20% Average common stockholders’ equity $ 44,584 $ 42,655 $ 43,948 $ 40,903 Less: Average goodwill (12,290) (11,951) (12,121) (11,951) Less: Average acquired intangible assets — net (7,212) (7,423) (7,187) (7,552) Plus: Average deferred tax liabilities related to goodwill and acquired intangible assets — net 1,753 1,695 1,704 1,695 Average tangible common equity $ 26,835 $ 24,976 $ 26,344 $ 23,095 Adjusted net income available to common stockholders (1) $ 2,926 $ 2,375 $ 8,243 $ 6,343 Return on tangible common equity — annualized (non-GAAP) 44% 38% 42% 37% (1) See table above for the reconciliation of net income available to common stockholders to adjusted net income available to common stockholders (non-GAAP). (Preliminary) September 30, 2026 CSC CSB Tier 1 Leverage Ratio (GAAP) 8.9% 10.6% Tier 1 Capital $ 44,782 $ 26,925 Plus: AOCI adjustment (10,389) (9,043) Adjusted Tier 1 Capital 34,393 17,882 Average assets with regulatory adjustments 501,735 255,095 Plus: AOCI adjustment (9,894) (8,746) Adjusted average assets with regulatory adjustments $ 491,841 $ 246,349 Adjusted Tier 1 Leverage Ratio (non-GAAP) 7.0% 7.3% THE CHARLES SCHWAB CORPORATION Non-GAAP Financial Measures (In millions, except ratios and per share amounts) (Unaudited) - 12 -