Episode summary
Schwab Trading Volume Swells to End Strong Year for Markets | Bloomberg Businessweek
Bloomberg Businessweek Daily
· · 12 min · Hosts: Carol Massar, Tim Stenovec · Guests: Rick Wurster
Summary
Charles Schwab said its fourth quarter was a record one, with earnings up 50% year over year, revenue up 22%, and net new client assets of $163 billion in the quarter and $519 billion for the year. The host and Rick Wurster focused on what is driving that growth: clients are concentrating more of their investing, wealth, trading, banking, and lending at Schwab because convenience is becoming a bigger draw across financial services.
Wurster said Schwab is open to offering some forms of prediction markets if they are tied to economic outcomes like employment or inflation, but he drew a sharp line between that and sports gambling. He argued that roughly 95% of what people call prediction markets is really sports betting, which he said does not fit Schwab’s mission of improving clients’ financial lives. He added that prediction markets are low on clients’ wish lists, while innovation has been focused on trading, wealth, and advisor tools.
He also highlighted Schwab’s acquisition of Forge Global as a way to democratize access to private markets for everyday investors, similar to what institutions and the very wealthy have long had. On market structure, Wurster said Schwab is open to 24/7 stock trading but believes current market hours still help liquidity and trading efficiency. He said the firm is prepared for geopolitical noise and still sees client confidence as strong.
Key takeaways
- Rick Wurster said Schwab had a record quarter, with earnings up 50% year over year and fourth-quarter net new client assets of $163 billion.
- Wurster said Schwab is open to certain prediction markets tied to inflation or employment, but not sports gambling.
- Wurster argued that about 95% of prediction-market volume is really sports betting, which he said does not fit Schwab’s mission.
- Schwab’s Forge Global acquisition is meant to broaden access to private markets beyond institutions and the wealthy.
- Wurster said Schwab is open to 24/7 stock trading, but believes market hours still improve liquidity and execution quality.
Notable quotes
“Our our earnings grew 50% year-over-year. Our revenue was up 22% year-over-year”
“And I think as it as that those were born, I think that makes sense when the within the context of of an investment portfolio”
“But I distinguish that between that and sports gambling. And if you look at 95% of the volume of what people call prediction markets is actually just sports gambling”
“We're now going to be able to bring it to all of our investors in multiple different forms and allow them to participate in private markets the way institutions and and the very wealthy have been able to”
“I think the market hours are a feature, not a bug”
How the episode opens
Bloomberg Audio Studios podcasts radio news. — You're listening to Bloomberg Business Week with Carol Masser and Tim Stenc on Bloomberg Radio.
Schwab shares. I'm just taking a look at them. Shares of the Charles Schwab Corporation.
They're up about 1% in today's session. Stock is trading higher after the company reported earnings earlier today. this morning.
It did report a surge in average daily trading volume in the fourth quarter and that's happening as retail investors really sought to take advantage of the end of a strong year of the stock market. We did see some big moves there. Hey to talk about the quarter and the outlook.
Great for Tim and I to be back with Rick Worester. He's president and CEO of the Charles Schwab Corporation. He joins us from their headquarters in West Lake West Lake, Texas.
Um Rick, great to have you back with us. How are you?
I'm doing really well. Nice to be with you, Carol and Tim. I always enjoy it. — Well, we are so glad to have you back with us. Um, it feels like 2026 is is off and running. I'm just curious, though. I want to talk about the last quarter, and you guys did note about clients conducting a lot more of their financial lives at Schwab, doing different things, wealth management, trading, and banking. So, talk to us a little bit more about how the quarter wrapped up and where you saw them engaging more.
Well, it was a record quarter for us as a firm. Our our earnings grew 50% year-over-year. Our revenue was up 22% year-over-year. And we saw net new client assets to the firm of $519 billion on the year, including a all-time record quarter in the fourth quarter of $163 billion.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- retail trading volume
- brokerage net new assets
- market outlook
- earnings vs estimates
- prediction markets
Companies and tickers mentioned
- SCHW
- Charles Schwab Corp.
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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