Charles Schwab reported a 12% year-over-year increase in net new assets during the most recent quarter, driven by its banking arm’s deposit growth and expanded advisory services. The firm’s average client assets climbed to $7.2 trillion, reflecting strong inflows into both cash management and retirement accounts. Schwab’s management reiterated guidance for annual revenue growth of 8% to 10%, citing gains in interest income from higher deposit balances and the ramp-up of its Schwab Intelligent Portfolios platform. Investors will watch the upcoming quarterly earnings call for updated projections on margin expansion and cost efficiencies tied to the firm’s technology investments.

A proprietary inflow indicator recently flashed its 12th outlier signal for Schwab shares since 1998, with the stock delivering an average total return of 1,174% over the subsequent multi-year periods following prior signals. The metric tracks unusual block-trade purchases and options flow clustering, suggesting institutional accumulation at key support levels. Historically, these signals have coincided with periods of above-average share performance over 18 to 24 months. Market participants note that the current signal arrives as Schwab’s expense ratio on its ETF lineup rests near a record low of 0.04%, reinforcing competitive positioning in the low-cost investing space.