“Full year net interest margin expands to a range of 2.85% to 2.95% with average 4Q 2026 NIM expected to finish above 2.9% despite assuming the Fed funds rate comes down by another 50 basis points.”

In context

“time, we will continue to deepen relationships with the 46 million total accounts and nearly $12 trillion of client assets already on Schwab's platform today. Increased investor utilization of our expanding set of solutions across trading, wealth, banking and more helps to further diversify our revenue as well as support franchise growth over time as clients with deeper relationships tend to consolidate more of their assets at Schwab. Specifically on trading activity, given the record volumes we supported last year, our 2026 scenario does allow for a slight pullback in volumes to roughly 7.4 million daily average trades for the full year. This level aligns more closely with volumes observed in early 2025. Under this scenario, we would expect total revenue growth of 9.5% to 10.5% in 2026. Full year net interest margin expands to a range of 2.85% to 2.95% with average 4Q 2026 NIM expected to finish above 2.9% despite assuming the Fed funds rate comes down by another 50 basis points. Full year 2026 interest-earning assets are expected to expand modestly year-over-year following the paydown of supplemental borrowings at the bank. From an expense planning perspective, we initially anchored to mid-single-digit year-over-year growth and adjust for a range of factors, including the macroeconomic backdrop, client engagement levels, our strategic initiatives and, of course, the revenue outlook. Therefore, within this financial scenario for 2026, we anticipate annual expense growth to range from 5.5% to 6.5%. Our spending plan aligns to our key strategic initiatives and aims to help us continue delivering financial growth through the cycle by driving new client growth and deepening relationships with individual investors and RIAs by further expanding our leading suite of offe”