SCHW changes
Pick any two versions below to diff them.
- Balance sheet
- added: Schwab is a bank holding company. Client money, not borrowed money, funds most of its $517.3 billion balance sheet. At June 30, 2026, bank deposits were $249.7 billion and payables to brokerage clients were $124.0 billion. Schwab invests this money in securities, margin loans and bank loans. Its own long-term debt was $22.7 billion, mostly unsecured senior notes of the parent company at a weighted average rate of 4.17%. It also had $13.9 billion of other short-term borrowings, mostly commercial paper, and $0.5 billion from the Federal Home Loan Bank. In June and August 2026, the parent added $3.6 billion of new senior notes to fund fast growth in margin loans. Moody's, S&P and Fitch rate these notes A2, A- and A. For liquidity, Schwab had $40.6 billion of cash and $32.8 billion of unused Federal Home Loan Bank capacity. It could also use $28.0 billion at the Federal Reserve discount window. The liquidity coverage ratio was 135%. $33.0 billion of segregated cash and investments belongs to clients by regulation, so it is not free cash. Capital is the real limit. The Tier 1 leverage ratio was 8.7%. With the $10.6 billion unrealized loss on its securities included, the ratio was 6.8%, inside the company's 6.75% to 7.00% target. The company also has $6.2 billion of preferred stock. Thus future buybacks must come mostly from new earnings. The securities loss shrinks as bonds mature, so capital room grows slowly over time. As of Jun 30, 2026.
- Checkpoints
- added: Oct 15, 2026: Q3 2026 business update: margin, new assets, client cash. Pending. Watch: Net interest margin at or above the Q2 level of 3.00% and more net new assets than a year earlier pass; a lower margin or client cash leaving sweep accounts fails. Q4 2026 (estimate): Charley AI assistant rollout and advisor AI tools. Pending. Watch: Client asset and account growth that holds up while Charley and the Claude advisor tools roll out pass; slower net new assets or account closures linked to outside AI apps fail. Jan 2027 (estimate): Q4 2026 results and 2027 outlook. Pending. Watch: A 2027 outlook with higher net interest revenue and the adjusted Tier 1 leverage ratio near 7% while buybacks continue passes; a lower margin outlook or a pause in buybacks fails.