Schwab (CHARLES) Corp. (The) Stock Price, News & Analysis

SAN FRANCISCO--Independent advisory firms are leveraging strategies for growth in a post-pandemic environment, according to Schwab Advisor Services' Independent Advisor Outlook Study. Key insights include:

• 56% of advisors predict a decreased need for office space.
• 49% expect more remote work.
• 47% believe client video conferencing will persist.

Schwab's consulting initiatives, such as the COVID-19 Resource Hub and Talent Resource Center, are designed to address the evolving needs of independent advisors.

Schwab's Independent Advisor Outlook Study reveals that while independent advisors face challenges due to COVID-19, 91% remain optimistic about industry growth. The study, which surveyed over 1,300 advisors, indicates that 82% expect growth this year, though 42% anticipate lower growth in net new assets, now expected to be 11%. Key challenges include uncertainty in planning (36%) and clients using technology (35%). Despite these challenges, 57% of advisors see opportunities in client service, and 47% expect a permanent shift to video-enabled meetings.

The Charles Schwab Corporation declared a quarterly cash dividend of $0.18 per common share, payable on November 27, 2020 to shareholders of record by November 13, 2020. Additionally, dividends for its Fixed Rate Non-Cumulative Perpetual Preferred Stocks were also announced: Series C at $15.00 per share, Series D at $14.88, and Series G at $1,343.75 per share, all payable on December 1, 2020. Series F will pay a semi-annual dividend of $2,500.00 per share on December 1, 2020. The corporation manages approximately $6 trillion in client assets.

Charles Schwab Investment Management, Inc. has launched a series of Schwab Model Portfolios for advisors on the Riskalyze platform. The 14 portfolios provide risk-based allocations, utilizing low-cost market-cap-weighted ETFs and strategic beta ETFs. They achieved Riskalyze GPA scores between 3.5 and 4.1, indicating high return efficiency. Advisors can implement the portfolios as is or customize them while maintaining oversight on expenses, which range from 0.04% to 0.12%. This initiative aims to enhance distribution to over 7,000 RIAs and institutions using Riskalyze.

The Charles Schwab Corporation reported a net income of $698 million for Q3 2020, up from $671 million in Q2 but down from $951 million in Q3 2019. Year-to-date, net income reached $2.2 billion, compared to $2.9 billion last year. The firm acknowledged $67 million in acquisition-related costs for Q3. Net revenues fell 10% year-over-year to $2.4 billion. Despite this, client engagement surged, with 51.2 billion in net new assets. Total client assets rose 17% to $4.40 trillion.

The Charles Schwab Corporation has completed its acquisition of TD Ameritrade, bringing together two significant financial services firms. This merger enhances Schwab's scale, with combined assets of approximately $6 trillion and 28 million brokerage accounts. The integration, expected to unfold over 18 to 36 months, aims to leverage the strengths of both companies for improved client services and lower costs. Schwab plans to retain TD Ameritrade's popular trading platforms and will transition TD Ameritrade accounts to Schwab's brokerage in the future.

The Charles Schwab Corporation has received approval from the Federal Reserve for The Toronto-Dominion Bank to acquire a minority, non-controlling interest in Schwab as part of its acquisition of TD Ameritrade. Following previous approvals, the merger is expected to close on October 6, 2020, pending customary conditions. Schwab's CEO expressed satisfaction with this approval, emphasizing the focus on integration. However, the full integration is projected to take 18 to 36 months, and both firms will continue operating separately until then.