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FINWIRES

Research Alert: Schw Q1: Margin Expansion Powers Eps Beat, Revenue Slightly Below Estimates

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

The Charles Schwab Corporation (SCHW) posted a Q1 earnings beat of $1.43 vs. $1.39 consensus and $1.04 in the prior year, with quarterly net revenues of $6.48B (+16%) reaching a company record. Revenue growth was broad-based, with net interest revenue +16%, asset management and administration fees +15%, and trading revenue +20%. We think these results demonstrate the strength of SCHW's diversified business model amid market uncertainty. Asset gathering was strong, with 1.3M new brokerage accounts and $140B of core net new assets in Q1. Client engagement reached record levels, with daily average trading volume hitting 9.9M trades (+34%), while total client assets stood at $11.77T (+19% Y/Y). Net interest margin expanded to 2.88% from 2.53% in the prior year due to higher yields and improved funding. The firm's strong capital position enabled $2.4B in share repurchases and a 19% dividend increase to $0.32 per share. We believe SCHW's diversified model and deepening client relationships support continued growth.

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