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 does UBS say about the cost of funding for Schwab?

What are the implications of halting buybacks for Schwab's profitability?