Schwab Reports Monthly Activity Highlights

Rhea-AI Summary

Charles Schwab reports $20.7 billion in net new assets for May 2023, with total client assets at $7.65 trillion.

Positive

• Net new assets brought to the company totaled $20.7 billion, with client assets up 5% from May 2022.

Negative

• None.

WESTLAKE, Texas--(BUSINESS WIRE)-- The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of May 2023 include:

• Core net new assets brought to the company by new and existing clients totaled $20.7 billion. Net new assets excluding mutual fund clearing totaled $24.5 billion.
• Total client assets were $7.65 trillion as of month-end May, up 5% from May 2022 and flat compared to April 2023.
• Client cash as a percentage of assets was 11.5% as of month-end May, compared with 12.0% in May 2022 and 11.3% in April 2023.

Commentary from the CFO

Peter Crawford, Managing Director and Chief Financial Officer, provides additional perspective on client cash realignment trends and second quarter revenue expectations: https://www.aboutschwab.com/cfo-commentary.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 34.3 million active brokerage accounts, 2.4 million corporate retirement plan participants, 1.8 million banking accounts, and $7.65 trillion in client assets as of May 31, 2023. 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 subsidiaries, Charles Schwab & Co., Inc., TD Ameritrade, Inc., and TD Ameritrade Clearing, Inc., (members SIPC, https://www.sipc.org), and their 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.

TD Ameritrade, Inc. and TD Ameritrade Clearing, Inc. are separate but affiliated companies and subsidiaries of TD Ameritrade Holding Corporation. TD Ameritrade Holding Corporation is a wholly owned subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank.

The Charles Schwab Corporation Monthly Activity Report For May 2023
	2022																2023										Change
	May		Jun		Jul		Aug		Sep		Oct		Nov		Dec		Jan		Feb		Mar		Apr		May		Mo.		Yr.
Market Indices (at month end)
Dow Jones Industrial Average®	32,990		30,775		32,845		31,510		28,726		32,733		34,590		33,147		34,086		32,657		33,274		34,098		32,908		(3%)		-
Nasdaq Composite®	12,081		11,029		12,391		11,816		10,576		10,988		11,468		10,466		11,585		11,456		12,222		12,227		12,935		6%		7%
Standard & Poor’s® 500	4,132		3,785		4,130		3,955		3,586		3,872		4,080		3,840		4,077		3,970		4,109		4,169		4,180		-		1%
Client Assets (in billions of dollars)
Beginning Client Assets	7,284.4		7,301.7		6,832.5		7,304.8		7,127.6		6,644.2		7,004.6		7,320.6		7,049.8		7,480.6		7,380.2		7,580.0		7,631.5
Net New Assets (1)	32.8		19.8		31.5		43.3		39.8		42.0		33.1		53.3		36.1		41.7		72.9		13.6		24.6		81%		(25%)
Net Market (Losses) Gains	(15.5	)	(489.0	)	440.8		(220.5	)	(523.2	)	318.4		282.9		(324.1	)	394.7		(142.1	)	126.9		37.9		(5.9	)
Total Client Assets (at month end)	7,301.7		6,832.5		7,304.8		7,127.6		6,644.2		7,004.6		7,320.6		7,049.8		7,480.6		7,380.2		7,580.0		7,631.5		7,650.2		-		5%
Core Net New Assets (2)	32.8		40.6		31.5		43.3		39.8		42.0		33.1		53.3		36.1		41.7		53.9		(2.3	)	20.7		N/M		(37%)
Receiving Ongoing Advisory Services (at month end)
Investor Services	513.0		483.8		514.8		499.2		466.6		487.3		514.0		499.8		524.6		515.5		526.2		530.7		526.3		(1%)		3%
Advisor Services (3)	3,213.8		3,040.4		3,222.5		3,150.5		2,950.9		3,106.0		3,270.5		3,173.4		3,345.4		3,289.6		3,369.3		3,394.9		3,377.8		(1%)		5%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts (4)	33,822		33,896		33,934		33,984		33,875		33,896		33,636		33,758		33,878		34,010		34,120		34,248		34,311		-		1%
Banking Accounts	1,658		1,669		1,680		1,690		1,696		1,706		1,705		1,716		1,729		1,733		1,746		1,757		1,768		1%		7%
Corporate Retirement Plan Participants	2,275		2,275		2,267		2,285		2,305		2,322		2,336		2,351		2,369		2,384		2,379		2,391		2,401		-		6%
Client Activity
New Brokerage Accounts (in thousands)	323		305		278		332		287		298		303		330		344		320		378		331		314		(5%)		(3%)
Client Cash as a Percentage of Client Assets (5)	12.0	%	12.8	%	12.0	%	12.1	%	12.9	%	12.2	%	11.5	%	12.3	%	11.6	%	11.7	%	11.6	%	11.3	%	11.5	%	20 bp		(50) bp
Derivative Trades as a Percentage of Total Trades	22.6	%	22.3	%	24.2	%	23.3	%	23.6	%	24.1	%	24.6	%	23.2	%	23.0	%	23.5	%	22.8	%	23.4	%	23.5	%	10 bp		90 bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (6)	620,157		614,100		605,751		586,154		568,351		552,631		527,019		520,100		512,893		503,122		497,627		493,215		483,438		(2%)		(22%)
Average Margin Balances	78,841		74,577		72,177		72,855		73,224		69,188		66,011		64,759		60,211		60,575		60,848		60,338		60,250		-		(24%)
Average Bank Deposit Account Balances (7)	154,669		155,306		154,542		148,427		141,198		136,036		130,479		126,953		122,387		115,816		109,392		104,775		103,149		(2%)		(33%)
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (8,9) (in millions of dollars)
Equities	1,889		(1,586	)	5,589		10,465		(2,662	)	3,984		3,777		(1,837	)	7,236		5,850		(3,234	)	1,126		(1,366	)
Hybrid	(1,718	)	(1,054	)	(2,041	)	(783	)	(938	)	(1,380	)	(2,052	)	(1,595	)	(433	)	47		(1,641	)	(462	)	(889	)
Bonds	(6,121	)	(5,631	)	729		(141	)	(5,801	)	(7,218	)	(3,721	)	(3,260	)	5,646		4,281		6,158		2,575		2,029
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (8)	(20,761	)	(16,258	)	(8,674	)	(7,117	)	(15,200	)	(18,473	)	(17,143	)	(21,851	)	552		(2,338	)	(7,423	)	(4,904	)	(7,157	)
Exchange-Traded Funds (9)	14,811		7,987		12,951		16,658		5,799		13,859		15,147		15,159		11,897		12,516		8,706		8,143		6,931
Money Market Funds	7,106		11,544		13,711		19,702		17,018		21,542		16,929		27,778		24,285		23,347		27,106		6,291		15,256

		Note: Certain supplemental details related to the information above can be found at: https://www.aboutschwab.com/financial-reports.
(1)		Unless otherwise noted, differences between net new assets and core net new assets are net flows from off-platform Schwab Bank Retail Certificates of Deposit (CDs) - including March 2023 which reflects inflows of $19.0 billion from off-platform Schwab Bank Retail CDs issued year-to-date through March 31, 2023. April 2023 also includes an inflow of $12.0 billion from a mutual fund clearing services client. June 2022 includes an outflow of $20.8 billion from a mutual fund clearing services client.
(2)		Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $10 billion) relating to a specific client, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods.
(3)		Excludes Retirement Business Services.
(4)		November 2022 includes the company-initiated closure of approximately 350 thousand low-balance accounts. September 2022 includes the company-initiated closure of approximately 152 thousand low-balance accounts.
(5)		Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets.
(6)		Represents average total interest-earning assets on the company's balance sheet. November 2022 includes the impact of transferring certain investment securities from the available for sale category to the held-to-maturity category.
(7)		Represents average clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions.
(8)		Represents the principal value of client mutual fund transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to Investment Managers. Excludes money market fund transactions.
(9)		Represents the principal value of client ETF transactions handled by Schwab, including transactions in proprietary ETFs.
		N/M - Not meaningful. Percentage changes greater than 200% are presented as not meaningful.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230614330458/en/

MEDIA:

Mayura Hooper

Charles Schwab

Phone: 415-667-1525

INVESTORS/ANALYSTS:

Jeff Edwards

Charles Schwab

Phone: 415-667-1524

Source: The Charles Schwab Corporation

What are the net new assets for May 2023?

The net new assets for May 2023 totaled $20.7 billion.

How much are the total client assets?

The total client assets are $7.65 trillion.

What is the percentage change in client assets compared to May 2022?

The client assets are up 5% from May 2022.