SCHWAB CHARLES Business Summary

The Charles Schwab Corporation (SCHW) operates a diversified financial services model primarily driven by net interest income (NII), which accounts for approximately 50% of total revenue through interest earned on client cash balances and margin lending. The company’s secondary revenue streams include asset management and administration fees (roughly 27-30%) from its proprietary ETFs and mutual funds, alongside trading commissions and service fees. Its operations are divided into two primary segments: Investor Services, providing retail brokerage and banking to over 38 million active accounts, and Advisor Services, which serves as the industry’s leading custodian for independent Registered Investment Advisors (RIAs). Schwab maintains a dominant market position as the largest RIA custodian with over 50% market share and approximately $11.9 trillion in total client assets, competing directly with full-service firms like Fidelity Investments and Vanguard, as well as digital-first platforms such as Interactive Brokers and Robinhood. Founded in 1971 by Charles R. Schwab, the company is currently led by President and CEO Rick Wurster, who assumed the role in January 2025 following a tenure as President and a career background at Wellington Management and McKinsey & Company. The technical and operational strategy is overseen by Dennis Howard, who was appointed Managing Director and Chief Technology, Operations and Data Officer in January 2026, bringing extensive experience from his previous role as CIO of Visa Inc. The executive team also includes CFO Mike Verdeschi and Omar Aguilar, CEO of Schwab Asset Management. The board is co-chaired by founder Charles Schwab and former CEO Walter Bettinger II, with significant institutional backing from major shareholders including The Vanguard Group, BlackRock, and Dodge & Cox.