Halyk Finance: The Charles Schwab Corporation

The Charles Schwab Corporation – the largest publicly traded U.S. brokerage firm by client assets. The company combines brokerage services for individual investors, its own bank, asset management, and financial consulting. Additionally, it is the largest custodian of client assets for independent financial advisors in the U.S. Schwab serves 48.6 million client accounts with $13.3 trillion in assets and leads the U.S. in client trading volume. About half of its revenue comes from net interest income: the company deploys clients’ free cash into loans and bonds. The rest is generated by asset management fees and trading revenues. Its investment profile relies on a steady inflow of client funds, growth in net interest income from lending, and operational efficiency: revenue is growing faster than expenses, which improves profitability.

Growth drivers:

• Record inflow of new client assets – $190 billion in Q3 2026
• Growth in net interest income as low-yielding bonds on the balance sheet are replaced with higher-yielding loans
• Expansion of client lending: securities-based lending and mortgages
• Leadership in serving independent financial advisors, who account for over 60% of asset inflows
• Growth in fee-based advisory and portfolio management revenues, which are less rate-sensitive
• New products: cryptocurrencies and access to private company shares