Regulatory Requirements

9 Months Ended

Sep. 30, 2025

Regulatory Capital Requirements Under Banking Regulations [Abstract]

At September 30, 2025, CSC and its banking subsidiaries met all of their respective capital requirements. Regulatory capital and ratios for CSC (consolidated) and CSB are as follows:


	Actual				Minimum to be Well Capitalized				Minimum Capital Requirement
September 30, 2025	Amount		Ratio		Amount		Ratio		Amount		Ratio (1)
CSC
Common Equity Tier 1 Risk-Based Capital	$	36,728	32.8	%	N/A				$	5,035	4.5	%
Tier 1 Risk-Based Capital	43,491		38.9	%	N/A				6,714		6.0	%
Total Risk-Based Capital	43,552		38.9	%	N/A				8,952		8.0	%
Tier 1 Leverage	43,491		9.7	%	N/A				17,884		4.0	%
Supplementary Leverage Ratio	43,491		9.7	%	N/A				13,513		3.0	%
CSB
Common Equity Tier 1 Risk-Based Capital	$	31,514	40.8	%	$	5,019	6.5	%	$	3,475	4.5	%
Tier 1 Risk-Based Capital	31,514		40.8	%	6,177		8.0	%	4,633		6.0	%
Total Risk-Based Capital	31,537		40.8	%	7,722		10.0	%	6,177		8.0	%
Tier 1 Leverage	31,514		12.4	%	12,694		5.0	%	10,155		4.0	%





Supplementary Leverage Ratio	31,514		12.3	%	N/A				7,684		3.0	%

December 31, 2024
CSC
Common Equity Tier 1 Risk-Based Capital	$	35,995	31.7	%	N/A				$	5,114	4.5	%
Tier 1 Risk-Based Capital	45,186		39.8	%	N/A				6,819		6.0	%
Total Risk-Based Capital	45,218		39.8	%	N/A				9,092		8.0	%
Tier 1 Leverage	45,186		9.9	%	N/A				18,325		4.0	%
Supplementary Leverage Ratio	45,186		9.8	%	N/A				13,836		3.0	%
CSB
Common Equity Tier 1 Risk-Based Capital	$	32,584	41.7	%	$	5,079	6.5	%	$	3,516	4.5	%
Tier 1 Risk-Based Capital	32,584		41.7	%	6,251		8.0	%	4,688		6.0	%
Total Risk-Based Capital	32,606		41.7	%	7,813		10.0	%	6,251		8.0	%
Tier 1 Leverage	32,584		11.6	%	14,035		5.0	%	11,228		4.0	%
Supplementary Leverage Ratio	32,584		11.5	%	N/A				8,479		3.0	%

(1) Under risk-based capital rules, CSC and CSB are also required to maintain additional capital buffers above the regulatory minimum risk-based capital ratios. As of September 30, 2025, CSC was subject to a stress capital buffer of 2.5%. In addition, CSB is required to maintain a capital conservation buffer of 2.5%. CSC and CSB are also required to maintain a countercyclical capital buffer above the regulatory minimum risk-based capital ratios, which was zero for both periods presented. If a buffer falls below the minimum requirement, CSC and CSB would be subject to increasingly strict limits on capital distributions and discretionary bonus payments to executive officers. At September 30, 2025, the minimum capital ratio requirements for both CSC and CSB, inclusive of their respective buffers, were 7.0%, 8.5%, and 10.5% for Common Equity Tier 1 Risk-Based Capital, Tier 1 Risk-Based Capital, and Total Risk-Based Capital, respectively.

N/A Not applicable.

Based on its regulatory capital ratios at September 30, 2025, CSB is considered well capitalized (the highest category) under its respective regulatory capital rules. There are no conditions or events since September 30, 2025 that management believes have changed CSB’s capital category.

CSC’s other banking subsidiaries are Charles Schwab Premier Bank, SSB (CSPB) and Charles Schwab Trust Bank (Trust Bank). CSPB is a Texas-chartered state savings bank that provides banking and custody services, and Trust Bank is a Nevada state-chartered savings bank that provides trust and custody services. At September 30, 2025, the balance sheets of CSPB and Trust Bank consisted primarily of investment securities, and the entities held total assets of $25.1 billion and $9.7 billion, respectively. Based on their regulatory capital ratios, at September 30, 2025, CSPB and Trust Bank are considered well capitalized under their respective regulatory capital rules.

Net capital and net capital requirements for CS&Co are as follows:


	September 30, 2025		December 31, 2024
CS&Co
Net capital	$	11,977	$	11,112
Minimum dollar requirement	0.250		0.250
2% of aggregate debit balances	2,567		2,049
Net capital in excess of required net capital	9,410		9,063

Pursuant to the SEC’s Customer Protection Rule and other applicable regulations, Schwab had cash and investments segregated for the exclusive benefit of clients at September 30, 2025. The SEC’s Customer Protection Rule requires broker-dealers to segregate client fully-paid securities and cash balances not collateralizing margin positions and not swept to money market funds or bank deposit accounts. Amounts included in cash and investments segregated and on deposit for regulatory purposes represent actual balances on deposit. Cash and cash equivalents included in cash and investments segregated and on deposit for regulatory purposes are presented as part of Schwab’s cash balances in the condensed consolidated statements of cash flows.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

SCHWAB CHARLES CORP 10-Q