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The Charles Schwab Corporation (NYSE:SCHW) said its calculated stress capital buffer remains well below the requirement of 2.5% minimum, resulting in a 2.5% SCB to be applicable on the investment bank.
The Federal Reserve’s 2024 Comprehensive Capital Analysis and Review, or CCAR, estimated SCHW’s minimum capital ratios under the supervisory severely adverse scenario for the nine-quarter horizon beginning Dec. 31, 2023 and ending March 31, 2026.
The 2.5% SCB will continue to be applicable to Schwab for the four-quarter period beginning October 1, 2024.
The company’s 26.71% common equity tier 1 ratio as of March 31, 2024, was above the regulatory minimum of 4.5% combined with the stress capital buffer of 2.5%. SCHW cited a relatively low-risk balance sheet assets.
Schwab’s consolidated tier 1 leverage ratio of 8.83% at the end of Q1, rose from 8.53% at 2023-end.
“Looking ahead, the firm’s priorities for managing capital remain unchanged,” CFO Peter Crawford said.