Schwab's second quarter supplied the balance-sheet proof that the July review still lacked. Revenue rose 21%, adjusted earnings increased 42% and sweep cash grew by $24.2 billion while expensive funding continued to decline.
The next question is harder. Pledged Asset Lines rose 59% and bank loans 33%, making lending demand a larger part of the margin story just as the August 12 CPI report approaches. SCHW entered that window 10.4% above its 50-day average and close to its 52-week high.
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