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Mike Verdeschi

CFO, Charles Schwab

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[NIM expansion] Primary driver was that lending activity... the Pledged Asset Line up 59% year-over-year... it comes with an incremental spread over security.

2026-07-21-earnings-schw-q2-fy2026· 2026-07-21#warsh-higher-for-longer-to-brokerage-nii-rerate#client-float-interest-to-custodian-exchange-nii

In the scenario we assume that one hike, but that's very late in the year, that's December. It doesn't impact the financials for 2026... You would see further expansion in 2027. If rates resume a hiking pattern you'll see even more expansion.

2026-07-21-earnings-schw-q2-fy2026· 2026-07-21#warsh-higher-for-longer-to-brokerage-nii-rerate
Notes

Mike Verdeschi

One-line summary: Schwab CFO; attributes 2026 NIM expansion to lending-mix (PAL/bank loans) not rate-beta, and frames a December hike as 2027 upside.

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