Charles Schwab Pauses Share Buybacks

Schwab announced a pause in their buyback program, causing their shares to come under pressure. The company's deposit base has decreased by about 30%, aligning with expectations, but the market is reacting to the halt in buybacks. Despite some financial results exceeding expectations, the deposit decline is significant as it affects funding costs. UBS notes that wholesale funding costs are higher than estimated but not as severe as feared. The industry is not yet fully stable, though there are positive signs in Schwab's numbers. The pause in buybacks follows a period of high buyback activity, raising questions about Schwab's profitability amid business line pressures.

What major financial decision did Schwab announce that affected their stock?

• Merging with another company

• Pausing their buyback program

• Launching a new product line

• Increasing their dividend payout

How did the market react to Schwab's announcement about their buyback program?

• The stock price increased significantly

• The stock price remained stable

• The stock price came under pressure

• The stock price doubled

What aspect of Schwab's financial results was above expectations?

• Net interest income

• Employee salaries

• Operating expenses

• Marketing costs

What did UBS say about Schwab's wholesale funding costs?

• They were below their estimate

• They were above their estimate but not as bad as feared

• They were significantly lower than expected

• They were exactly as estimated

What is a major concern for Schwab following the pause in buybacks?

• Hiring more employees

• Profitability and pressure on business lines

• Increasing marketing budget

• Expansion into new markets