Charles Schwab (SCHW.US) reported better-than-expected third-quarter earnings, largely driven by a significant increase in retail investor activity. The financial report indicated that the company's net new asset total reached $134.4 billion, soaring 48% year-on-year and surpassing the analysts' prior forecast of $130.2 billion for the three months ending in September. Daily average revenue trades grew by 30%, amounting to $7.42 trillion, exceeding analysts’ expectations of $7.25 trillion. Net revenue hit $6.1 billion, a 27% increase from the same period last year, which was above the market expectation of $5.95 billion. Net profit stood at $2.4 billion, showing a substantial 67% growth compared to 2024, with earnings per share at $1.26 and adjusted earnings per share reaching $1.31, both exceeding the market's anticipated $1.24. CEO Rick Wurster stated in a Thursday announcement, “The organic growth trend continues to strengthen, the adoption of wealth management solutions is on the rise, and favorable macroeconomic factors collectively propelled the company’s revenue and earnings per share to set new historical highs this quarter.” Retail investors' increasing interest in wealth management has long positively influenced Charles Schwab. The company has seen over one million new brokerage accounts opened for the fourth consecutive quarter. Wurster mentioned last month that as many companies opt to extend their private operational status, the demand from retail investors for private equity investments is growing. As a financial institution with both brokerage and banking qualifications, Charles Schwab is expanding its digital business while also increasing investments in physical branch locations. The Texas-based company announced last month that it would open 16 new branches and expand or relocate 25 existing locations. Prior to Charles Schwab's earnings release, several major Wall Street banks had reported their third-quarter results earlier this week, benefiting from strong demand from clients for stocks and other investment areas, including Morgan Stanley’s (MS.US) Global Wealth Management business, which generated $8.2 billion in revenue, surpassing market expectations. On Thursday morning, Schwab’s stock price rose by over 3%. The company announced a $20 billion stock repurchase plan in July, and in the third quarter, it repurchased $2.7 billion worth of 28.9 million shares.