Charles Schwab reported its strongest quarter on record, with revenue climbing to $7.1 billion and profits rising sharply from a year earlier. The results were accompanied by a notable product expansion: the brokerage has now enabled direct Bitcoin and Ethereum trading for retail clients for the first time.
Record quarter driven by higher activity
The company said quarterly revenue reached $7.1 billion, up 21% year over year. Adjusted earnings came in at $1.62 per share, above expectations cited in the source article at about $1.55. Net income increased 32% to $2.8 billion.
Client assets also reached a new high. Schwab said total client assets rose 22% from a year earlier to $13.08 trillion. Trading activity was especially strong, with a record 11.9 million trades per day, a 57% increase year over year.
Other balance sheet and profitability measures also moved higher. Margin balances nearly doubled to $165.1 billion, while net interest margin improved to 3.00% from 2.66%.
Trading mix shows pressure on revenue per trade
Although trading volumes surged, not every trading metric improved. Earnings per trade fell 19% to $1.64. According to the source article, the jump in volume-driven trading revenue outweighed gains from pricing, suggesting that activity rose faster than unit economics.
That distinction may help explain why the company delivered record results without prompting a major share-price reaction immediately after the report. The stock was described as barely changed following the earnings release, indicating that investors may have already been positioned for a strong quarter.
Retail crypto access expands
Alongside the earnings report, Schwab introduced direct trading in Bitcoin and Ethereum for retail customers. The move marks the first time the firm has made crypto available directly, rather than through products such as funds and futures.
The source article noted that Bitcoin was trading near $66,690, while Ether was near $1,927 at the time of publication. No broader launch figures or client adoption numbers were provided, but the timing links Schwab’s crypto rollout with a quarter that already showed unusually high client engagement.
AI tool and prediction markets plans
Schwab also announced Portfolio Insights, an artificial intelligence tool designed to summarize daily portfolio moves. In addition, the firm plans to offer access to Cboe prediction markets in the near future, according to the source article.
These additions point to a wider push beyond traditional brokerage services. Still, the source framed the next phase as uncertain, raising the question of whether the company’s newer crypto and AI initiatives can help produce further upside after a quarter that already set multiple records.
Schwab’s latest report combined stronger revenue, profit growth, rising client assets and heavy trading activity with new product launches in crypto and AI. Even so, the muted stock reaction suggested the headline strength may have been largely anticipated by the market.
Source: beincrypto.com