CNBC Television · Oct 16, 2026
With Rick Wurster, President and CEO of Charles Schwab
Charles Schwab brought in $190.4B of new client assets in the third quarter, and its stock still fell about 5% on the release before recovering.
Rick Wurster, President and CEO of Charles Schwab, told CNBC Television that investors read two things wrong: they treat AI as a threat to the firm, and they treat a small miss on net interest margin as a sign of weak demand. Rick argued the reverse on both counts.
"What I think the market is missing is that AI is a big accelerant to our company rather than a headwind."
Rick runs a firm with $13.3T of client assets, up 15% from a year earlier, and he came on the morning after its best quarter on record.
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Here are the 5 insights that matter.
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Key Takeaways
AI is an accelerant for Schwab, not a headwind, in Rick's reading of the post-earnings dip
Net interest margin came in at 3.04%, about 4bp below consensus, because loans grew faster than deposits
Rick tied that to strong demand for borrowing, not a weaker business
Client leverage grew about 90% in a year, mostly from tax-aware long-short strategies
Over 90% of investors still want a human, even though over 70% already use AI to invest
Schwab will offer prediction markets on financial events and not on sports
1. A Record Client Quarter
Schwab reported record third-quarter revenue and earnings. The numbers discussed on air were $190.4B in new assets, core net new assets up 38% from a year earlier, and total client assets of $13.3T. Rick put the emphasis on client activity rather than profit.
Schwab's record quarter was, above all, a record for client engagement
"It was a record quarter and we're thrilled about that. Most importantly, it was a record quarter in serving clients." — Rick Wurster
Core net new assets measure money clients brought to the firm, excluding one-off moves. A 38% rise is the clearest sign of the engagement Rick was describing.
