The Charles Schwab Corporation - SCHW STOCK NEWS

The Board of Directors of The Charles Schwab Corporation has approved a $15 billion share repurchase program and announced a 10% increase in the quarterly dividend to $0.22 per share. The dividend is payable on August 26, 2022, to stockholders of record as of August 12, 2022. This decision reflects strong financial performance and confidence in future prospects. The CEO emphasized the intention for significant capital return alongside business growth, indicating a focus on enhancing shareholder value.

According to a recent survey by Schwab Retirement Plan Services, inflation is the primary concern for retirement savings, with 45% of participants citing it as a top obstacle. The average retirement savings goal has decreased to $1.7 million from $1.9 million last year. Many workers (79%) are adjusting their saving and spending habits due to financial strain, with 44% changing their 401(k) investments. Employers are also responding by enhancing support, with 60% taking action to help employees manage financial stress. Financial advice is increasingly sought by workers, enhancing their confidence in making investment decisions.

The Charles Schwab Corporation reported a record net income of $1.8 billion for Q2 2022, a 42% increase compared to Q1 2022, contributing to a total of $3.2 billion for the first half of the year.

Net revenues climbed 13% year-over-year to $5.1 billion, driven by rising interest rates. Daily trading volume averaged 6.2 million, with 1.0 million new brokerage accounts created. However, total client assets decreased to $6.83 trillion, down from $7.57 trillion a year earlier.

The Charles Schwab Corporation (NYSE: SCHW) has announced a Summer Business Update scheduled for Thursday, July 28, aimed at institutional investors. This live public webcast will run from 8:00 a.m. - 9:00 a.m. PT and will feature key executives including CEO Walt Bettinger, President Rick Wurster, and CFO Peter Crawford. The event aims to provide insights into recent developments and management's strategic focus. Schwab currently manages $7.30 trillion in client assets, with 33.8 million active brokerage accounts as of May 31, 2022.

Schwab Advisor Services has enhanced its digital onboarding capabilities, allowing independent advisors to open and fund up to 10 client accounts in one streamlined process. This update follows a request from advisors to manage multiple accounts efficiently. In early usage, over half of new transactions involved multiple accounts, reducing paperwork and human error significantly. Schwab's continued investment in advisor technology, tripling its pre-acquisition spending, aims to simplify account management and improve the client experience. New features will support a broader range of account types in the future.

The Charles Schwab Corporation announced the results of the Federal Reserve’s 2022 Comprehensive Capital Analysis and Review, revealing a stress capital buffer (SCB) of 2.5%, meeting the minimum requirement. As of March 31, 2022, Schwab's Common Equity Tier 1 (CET1) ratio stood at 18.9%, significantly above the regulatory minimum. The consolidated Tier 1 Leverage Ratio was reported at 6.1%, slightly below the long-term objective but above the regulatory standard. CFO Peter Crawford emphasized Schwab's strong capital position and commitment to long-term growth.

Schwab Asset Management announced a reduction in operating expense ratios for 10 of its ETFs and mutual funds, enhancing investor cost-effectiveness. This follows a previous fee reduction in December 2021 for five fixed income ETFs. Notable changes include a decrease in the Schwab International Opportunities Fund's net operating expense ratio from 1.25% to 0.83%. Schwab emphasizes its commitment to affordable, accessible investment products, managing approximately $623.1 billion in discretionary assets as of March 31, 2022.

Charles Schwab has announced the rebranding of its advisory service from Schwab Private Client (SPC) to Schwab Wealth Advisory (SWA) effective next month. This change aims to better reflect its comprehensive wealth management services, which currently serve over 70,000 households with approximately $146 billion in assets as of December 31, 2021. The average household in SWA has more than $2 million in enrolled assets. The program maintains its annual fee starting at 0.80% of billable assets, decreasing with higher asset levels, with no change in client service or costs.