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Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
Schwab’s two reportable segments are Investor Services and Advisor Services. Schwab structures the operating segments according to its clients and the services provided to those clients. The Investor Services segment provides retail brokerage, investment advisory, and banking and trust services to individual investors, and retirement plan and business services, as well as other corporate brokerage services, to businesses and their employees. The Advisor Services segment provides custodial, trading, banking and trust, and support services to independent RIAs, independent retirement advisors, and recordkeepers. Revenues and expenses are attributed to the two segments based on which segment services the client. Schwab’s chief operating decision makers (CODMs) are the President and Chief Executive Officer, and the Managing Director and Chief Financial Officer.

The accounting policies of the segments are the same as those described in Item 8 – Note 2 in the 2024 Form 10-K. For the computation of its segment information, Schwab utilizes an activity-based costing model to allocate traditional income statement line item expenses (e.g., compensation and benefits, depreciation and amortization, and professional services) to the business activities driving segment expenses (e.g., client service, opening new accounts, or business development) and a funds transfer pricing methodology to allocate certain revenues.

The CODMs evaluate the performance of the segments on a pre-tax basis and use income before taxes on income to allocate resources, including employees and capital, to the segments during the annual budgeting process. The CODMs consider budget-to-actual variances on a monthly basis when making decisions about allocating resources to the segments throughout the year. Segment assets and liabilities are not used for evaluating segment performance or in deciding how to allocate resources to segments. There are no revenues from transactions between the segments.
Financial information for the segments is presented in the following table (1):
Investor ServicesAdvisor ServicesTotal
Three Months Ended June 30,202520242025202420252024
Net Revenues
Net interest revenue$2,244 $1,736 $578 $422 $2,822 $2,158 
Asset management and administration fees1,144 1,001 426 382 1,570 1,383 
Trading revenue852 688 100 89 952 777 
Bank deposit account fees194 119 53 34 247 153 
Other201 172 59 47 260 219 
Total net revenues4,635 3,716 1,216 974 5,851 4,690 
Expenses Excluding Interest
Compensation and benefits1,191 1,122 345 328 1,536 1,450 
Professional services231 206 60 53 291 259 
Occupancy and equipment212 193 58 55 270 248 
Advertising and market development70 70 38 37 108 107 
Communications120 119 56 53 176 172 
Depreciation and amortization162 185 53 48 215 233 
Amortization of acquired intangible assets104 105 24 24 128 129 
Regulatory fees and assessments62 76 15 20 77 96 
Other209 206 38 43 247 249 
Total expenses excluding interest2,361 2,282 687 661 3,048 2,943 
Income before taxes on income$2,274 $1,434 $529 $313 $2,803 $1,747 
Six Months Ended June 30,
Net Revenues
Net interest revenue$4,402 $3,502 $1,126 $889 $5,528 $4,391 
Asset management and administration fees2,258 1,976 842 755 3,100 2,731 
Trading revenue1,657 1,405 203 189 1,860 1,594 
Bank deposit account fees385 260 107 76 492 336 
Other378 310 92 68 470 378 
Total net revenues9,080 7,453 2,370 1,977 11,450 9,430 
Expenses Excluding Interest
Compensation and benefits2,476 2,311 732 677 3,208 2,988 
Professional services445 400 115 100 560 500 
Occupancy and equipment427 399 117 114 544 513 
Advertising and market development134 132 70 63 204 195 
Communications233 218 96 95 329 313 
Depreciation and amortization327 371 105 90 432 461 
Amortization of acquired intangible assets210 234 48 25 258 259 
Regulatory fees and assessments132 170 34 51 166 221 
Other411 362 80 73 491 435 
Total expenses excluding interest4,795 4,597 1,397 1,288 6,192 5,885 
Income before taxes on income$4,285 $2,856 $973 $689 $5,258 $3,545 
(1) In connection with certain changes in Schwab’s organizational management structure, in the fourth quarter of 2024, the Retirement Business Services business unit was transferred from the Advisor Services segment to the Investor Services segment. Accordingly, amounts related to the Retirement Business Services business unit are included within Investor Services for the second quarter and six months ended June 30, 2025, and prior-year amounts have been recast to reflect this new basis of segmentation.