The Charles Schwab Corporation (NYSE:SCHW) Q2 2024 Results Conference Call July 16, 2024 8:30 AM ET

Company Participants

Jeff Edwards - Head of Investor Relations
Walt Bettinger - Co-Chairman and Chief Executive Officer
Rick Wurster - President
Peter Crawford - Chief Financial Officer

Conference Call Participants

Brian Bedell - Deutsche Bank
Ken Worthington - JPMorgan
Kyle Voigt - KBW
Dan Fannon - Jefferies
Steven Chubak - Wolfe Research
Brennan Hawken - UBS
Benjamin Budish - Barclays
Alex Blostein - Goldman Sachs
Bill Katz - TD Cowen
Michael Cyprys - Morgan Stanley
Chris Allen - Citi
Devin Ryan - Citizens JMP

Jeff Edwards

Good morning, everyone, and welcome to the Schwab 2024 Summer Business Update. This is Jeff Edwards, Head of Investor Relations; and I'm joined today by our Co-Chairman and CEO, Walt Bettinger; President, Rick Wurster; and CFO, Peter Crawford.

We got a bit of an early start today to beat the Texas heat, so let's run through our housekeeping items and get in today's remarks. The slides for today's business update will be posted to their usual spot on the IR website at the beginning of Peter's section.

Q&A remains structured as one question, no follow-ups, please, but you can certainly reenter the queue to ask another question if time permits. And as always, please don't hesitate to reach out with any follow-up questions for the IR team.

And lastly, the wall of words, which showcases our forward-looking statements, reminding us that the future is uncertain, so please stay in touch with our disclosures.

And with that, I'll turn it over to Walt.

Walt Bettinger

Thank you, Jeff, and good morning, everyone. Thanks for joining us for our July business update. Earlier this year, we spoke about 2024 being a transition year for the firm. We define this year as transitional for a series of reasons. We were anticipating completing the last transition groups from the Ameritrade acquisition. And we anticipated that former Ameritrade clients would move from negative asset flows to positive levels of net new assets.

We further anticipated that former Ameritrade retail clients would begin to utilize Schwab capabilities in the areas of investment advisory, financial planning and banking. We anticipated the investment advisers, who formerly used Ameritrade for custodial services, would also begin to bring net new assets to Schwab, and their evaluation of our service levels would improve rather dramatically.

We anticipated that Schwab users of StreetSmart would begin to take advantage of the powerful trading capabilities in the Thinkorswim platforms.