Charles Schwab Discloses Results of the Federal Reserve’s 2024 Comprehensive Capital Analysis and Review
The Charles Schwab has disclosed its results from the Federal Reserve's 2024 Comprehensive Capital Analysis and Review (CCAR). Schwab's stress capital buffer (SCB) is at the regulatory minimum of 2.5%, applicable for the period starting October 1, 2024. The firm's Common Equity Tier 1 (CET1) ratio stands at 26.71% as of March 31, 2024, significantly above the regulatory minimum of 4.5%, enhanced by the low-risk nature of its assets. Schwab's consolidated Tier 1 Leverage Ratio increased to 8.83% from 8.53% at the end of 2023. CFO Peter Crawford highlighted that the CCAR results affirm Schwab's robust capital management, which supports its client needs and long-term shareholder value. Despite awaiting final rule changes, Schwab remains committed to maintaining strong capital levels, focusing on profitable growth, and returning excess capital over time through dividends and other means.
- Schwab's CET1 ratio of 26.71% as of March 31, 2024 exceeds the regulatory minimum of 4.5%.
- The consolidated Tier 1 Leverage Ratio increased to 8.83% from 8.53% at year-end 2023.
- Schwab's stress capital buffer (SCB) is at the minimum regulatory requirement of 2.5%.
Insights
Charles Schwab Corporation’s disclosure of its results from the Federal Reserve’s 2024 Comprehensive Capital Analysis and Review (CCAR) reveals a robust financial position. The firm’s Common Equity Tier 1 (CET1) ratio of
For retail investors, these numbers suggest Schwab is effectively managing its capital and risk, maintaining a solid buffer against adverse economic conditions. This is encouraging for both potential and current shareholders as it underscores the firm's ability to sustain dividends and potentially return excess capital.
Schwab’s performance in the CCAR stress test, especially achieving an SCB at the floor of
Importantly, Schwab's strategy to balance profitable growth and long-term stockholder value should resonate well with investors looking for sustainable returns. It’s worth noting that regulatory changes are on the horizon, but Schwab’s preparedness should mitigate potential disruptions.
This
Schwab ended the first quarter of 2024 with a consolidated Tier 1 Leverage Ratio of
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
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MEDIA:
Mayura Hooper
Charles Schwab
Phone: 415-667-1525
INVESTORS/ANALYSTS:
Jeff Edwards
Charles Schwab
Phone: 415-667-1524
Source: The Charles Schwab Corporation
FAQ
What are Charles Schwab's results from the 2024 CCAR?
How does Schwab’s CET1 ratio compare to regulatory requirements?
What is Schwab's Tier 1 Leverage Ratio as of Q1 2024?
When will Schwab's 2.5% SCB be applicable?