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Schwab Announces Redemption of All Outstanding Depositary Shares Representing Interests in Its 5.375% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series G

1. Charles Schwab will redeem 24,580 shares of Series G Preferred Stock on June 1, 2025. 2. The redemption price for each Depositary Share is $1,000. 3. A quarterly dividend will be paid separately on June 2, 2025. 4. Charles Schwab maintains $9.93 trillion in client assets across multiple accounts.

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Why Bullish?

This action establishes a positive cash flow and strengthens balance sheet metrics, potentially leading to favorable investor sentiment. Historically, preferred stock redemptions often signal financial stability and future growth prospects.

How important is it?

The announcement demonstrates fiscal responsibility and strategic financial management, likely appealing to investors. The series of preferred stock redemptions could improve earnings per share and overall market valuation, making it pertinent to SCHW.

Why Short Term?

The impact may manifest quickly as investors react to the redemption announcement, potentially resulting in immediate price adjustments. Previous instances indicate that similar announcements often trigger positive market reactions.

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WESTLAKE, Texas--(BUSINESS WIRE)--The Charles Schwab Corporation (“CSC”) today announced that, on June 1, 2025, it will redeem all of the 24,580 outstanding shares of its 5.375% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series G (“Series G Preferred Stock”, CUSIP 808513BD6), and the corresponding 2,457,964 depositary shares (“Depositary Shares”), each representing a 1/100th interest in a share of the Series G Preferred Stock. The Depositary Shares will be redeemed at a redemption price of $1,000 per Depositary Share. The redemption price does not include the regular quarterly dividend that was declared and will be paid separately in the customary manner on June 2, 2025 to holders of record at the close of business on May 16, 2025. The Depositary Shares are held in book-entry form through the Depository Trust Company (“DTC”) and will be redeemed in accordance with the procedures of DTC. Payment to DTC for the Depositary Shares will be made by Equiniti Trust Company as redemption agent. The address for Equiniti Trust Company is 1110 Centre Pointe Curve, Suite 101, Mendota Heights, Minnesota 55120-1400, Attention: Corporate Actions. About Charles Schwab The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 37.0 million active brokerage accounts, 5.5 million workplace plan participant accounts, 2.1 million banking accounts, and $9.93 trillion in client assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com. More News From CHARLES SCHWAB & CO. INC.

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