SCHW changes
Pick any two versions below to diff them.
- Balance sheet
- 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 2026-06-30.
- Checkpoints
- 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.