Charles Schwab reported $3 billion in net income, up 23% year over year, and $7.2 billion in revenue, up 17% and a record despite a modest miss. Net new assets reached $192.4 billion, 43% above last year's third quarter, and the daily trade count rose 44%. The net interest margin of 3.04% fell short of expectations as Schwab added $5.5 billion in more expensive borrowing, and shares dropped 2.7% on Thursday. Morningstar said the core business remains healthy with no sign of AI agent pressure, though broker shares had been weighed down by fears that AI agents would disrupt advisory services. Schwab has moved to block AI agents from accessing accounts and rolled out its AI assistant Charley.
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