The Charles Schwab Corporation (CSC or Schwab) announced today that it has received the results of the Federal Reserve’s 2024 Comprehensive Capital Analysis and Review (CCAR). These results included the Federal Reserve’s estimate of Schwab’s minimum capital ratios under the supervisory severely adverse scenario for the nine-quarter horizon beginning December 31, 2023 and ending March 31, 2026. Based on these results, Schwab’s calculated stress capital buffer (SCB) remains well below the 2.5% minimum, resulting in a SCB at that floor.

This 2.5% SCB will continue to be applicable to Schwab for the four-quarter period beginning October 1, 2024. Schwab’s Common Equity Tier 1 (CET1) ratio of 26.71% as of March 31, 2024 was well in excess of the regulatory minimum of 4.5% combined with the SCB of 2.5% due to the relatively low risk nature of our balance sheet assets.

Schwab ended the first quarter of 2024 with a consolidated Tier 1 Leverage Ratio of 8.83%, up from 8.53% at year-end 2023.

CFO Peter Crawford commented, “Schwab’s CCAR stress test results further reinforce the durability of our approach to capital management which helps keep us well positioned to serve the evolving needs of our clients across a wide range of environments. As we await the finalization of anticipated rule changes, we remain focused on continuing to enhance our strong capital levels. Looking ahead, the firm’s priorities for managing capital remain unchanged: supporting profitable growth through-the-cycle, while also bolstering long-term stockholder value via our common dividend target and the opportunistic return of excess capital over time.”

Forward-looking Statements

This press release contains forward-looking statements relating to the company’s capital levels and its approach to capital management to support profitable growth, dividends, capital return and stockholder value. These forward-looking statements reflect management’s beliefs, expectations, and objectives as of today and are subject to risks and uncertainties that could cause actual results to differ materially. Important factors that may cause such differences are discussed in the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company’s website (https://www.aboutschwab.com/financial-reports) and the Securities and Exchange Commission’s website (www.sec.gov).

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 35.5 million active brokerage accounts, 5.3 million workplace plan participant accounts, 1.9 million banking accounts, and $9.21 trillion in client assets as of May 31, 2024. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiaries, Charles Schwab & Co., Inc., TD Ameritrade, Inc., and TD Ameritrade Clearing, Inc., (members SIPC, https://www.sipc.org), and their affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com. TD Ameritrade, Inc. and TD Ameritrade Clearing, Inc. are separate but affiliated companies and subsidiaries of TD Ameritrade Holding Corporation. TD Ameritrade Holding Corporation is a wholly owned subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank.

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