“With the majority of this benefit realized in 3Q '25, we expect our corporate tax rate to remain around the 23% to 24% zone in future periods.”

In context

“enses. Adjusted expenses for the quarter were up 5% versus 3Q '24 as we continue to make ongoing investments to support sustainable growth including opening new branches and hiring financial consultants, supported very strong and sustained client engagement across our broad suite of modern wealth solutions and seek to further unlock incremental efficiencies across our business. Further progress in reducing high-cost borrowings at the banks, equity market strength and sustained trading volumes drove regular top line growth. In conjunction with balanced expense management, Schwab's adjusted pretax profit margin reached 51.3%. Quarterly adjusted earnings per share equaled a record $1.31, a year-over-year increase of 70%. Note that 3Q EPS included a $0.03 benefit related to state tax matters. With the majority of this benefit realized in 3Q '25, we expect our corporate tax rate to remain around the 23% to 24% zone in future periods. Moving on to our balance sheet. We supported our clients as their needs evolve against a shifting backdrop. Client demand for our lending solutions increased during the quarter. Outstanding PAL balances grew to $23.4 billion, representing a year-over-year increase of 37%. Client margin loan balances rose to $97.2 billion at quarter end, up 16% versus year-end 2024, reflecting rising equity markets and improved investor sentiment and certain tactical client trading activities, such as long/short strategies. Transactional sweep cash trends continue to reflect normal client behavior. Following modest outflows during July and August related to typical seasonality and client net buying activity, we saw $19 billion of cash inflows in September to bring the quarter end balance to $425.6 billion,”