Charles Schwab expects full-year 2026 revenue growth and net interest margin expansion to land near the lower end of ranges issued during its summer business update, Chief Financial Officer Mike Verdeschi said after the company’s third-quarter results. Expense growth is also expected at the low end of its prior range.
Net interest revenue rose 14% to nearly $3. 5 billion, while asset-management and administration fees increased 14% to $1. 9 billion and trading revenue climbed 16% to $1. 2 billion.
Client activity remained strong. Schwab attracted $190 billion in core net new assets during the quarter, opened 1. 2 million brokerage accounts and recorded $24 billion in managed-investing net flows.
Management said lending growth has outpaced deposit growth, increasing Schwab’s use of diversified funding sources. The company also said lending assets now exceed its securities portfolio, while roughly $190 billion of securities continue to yield less than 2%. As those holdings mature, Schwab expects the cash to support lending activity or be reinvested at higher yields, factors management said should support net interest margin expansion.
Schwab said fourth-quarter net interest margin should continue to expand and estimated year-over-year growth of roughly 25 to 30 basis points when comparing the fourth quarters of 2026 and 2025. The company also expects approximately 800 basis points of positive operating leverage for 2026, about twice the level anticipated at the beginning of the year.
Schwab said it repurchased nearly $4 billion of common shares during the first nine months of the year while maintaining an adjusted Tier 1 leverage ratio of 7% at quarter-end.