US Retail Broker, Wealth Managers Post Record Earnings, Assets 1H2026
U.S. retail brokers and wealth managers posted strong results in the first half of 2026 (1H26), with aggregate net revenue and pre-tax earnings rising 19% and 28% year-over-year (yoy), respectively, according to a new Fitch Ratings report.
Solid client asset gathering, resilient equity markets, and healthy advisor productivity supported operating performance, while diversified firms also benefited from strong investment banking activity and bank lending growth.
Margin trends were more idiosyncratic, reflecting firm-specific integration costs, technology investment, and a competitive advisor recruiting environment.
According to Fitch, client assets grew 20% yoy on average across the group, reaching record highs on solid net new asset generation, advisor recruiting, and favourable markets, even as recruiting costs rise industrywide.
Trading activity was robust amid heightened volatility and broader product access. Charles Schwab reported a record daily average trading volume and launched Schwab Crypto for direct retail trading in Bitcoin and Ethereum.
Net interest margin (NIM) and client cash trends diverged by firm. Schwab’s NIM continued to expand, reflecting robust loan growth and paydown of higher-cost borrowings.
Stifel and Raymond James experienced modest NIM pressure as lower yields on investments and loans offset lower funding costs.
Aggregate client cash balances generally increased yoy across Schwab, Raymond James, and LPL, although sequential trends were mixed. Fitch expects cash balances to track client asset gathering, interest rate levels, and client allocation behaviour.
Wealth management M&A activity remained active in 1H26, particularly in advisor-led and succession transactions. Fitch expects this consolidation trend to continue.
Management teams also continued to frame artificial intelligence (AI) as a productivity enhancer for advisors and operations.
Fitch believes wealth managers face elevated AI-driven business model risk, as model portfolios, direct indexing and product selection could become increasingly commoditised. Wall Street, European Markets Rally on Global Inflation Relief Bets
