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

The Charles Schwab Corporation published its Monthly Activity Report for October 2020, marking the first report post-acquisition of TD Ameritrade. Key points include: Core net new assets reached $25.6 billion, bringing total client assets to $5.88 trillion, a 53% increase from October 2019. Average interest-earning assets rose to $442.1 billion, a 66% year-over-year growth. Notably, before the acquisition closing on October 6, TD Ameritrade reported 3,932 thousand daily average trades and 32 thousand new brokerage accounts.

Charles Schwab has announced a patent-pending algorithm aimed at enhancing client experience and making investing more accessible. Developed by the Digital Services organization, the algorithm analyzes billions of client data points to detect intent and adapt to user behavior changes. This innovation will streamline communication, allowing clients to connect directly with the right representatives based on their recent activities. Additionally, Schwab has been recognized with the 2020 Award for Excellence in Analytics from the International Institute for Analytics for its impactful cross-channel analytics initiative.

According to the Charles Schwab 2020 Modern Retirement Survey, 88% of Boomer veterans are confident about their retirement lifestyle despite the pandemic. Conducted among 400 respondents aged 55 to 75 with over $100,000 in investable assets, 87% expect a better quality of life than their parents. However, they foresee needing an average of $130,000 annually to maintain their desired lifestyle. The survey highlights that while many have maintained their investment strategies, 54% worry about market volatility affecting their plans.

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.