Schwab Reports Monthly Activity Highlights
The Charles Schwab Corporation (SCHW) reported a strong month in November 2023, with core net new assets totaling $21.7 billion. Total client assets reached $8.18 trillion, marking a 12% increase from November 2022 and a 7% increase from October 2023. Transactional sweep cash saw a significant increase of $5.0 billion, the largest monthly build since March 2022. However, the company anticipates a 9.5% to 10.0% decline in full-year 2023 revenue due to lower transactional cash levels, subdued securities lending activity, and softer client trading volumes.
Positive
Core net new assets brought to the company by new and existing clients totaled $21.7 billion.
Total client assets were $8.18 trillion, up 12% from November 2022 and up 7% compared to October 2023.
Transactional sweep cash increased by $5.0 billion in November 2023, the largest monthly build since March 2022.
Clients added over $7 billion across balance sheet cash solutions during the month.
Negative
Anticipated 9.5% to 10.0% decline in full-year 2023 revenue due to lower transactional cash levels, subdued securities lending activity, and softer client trading volumes.
12/14/2023 - 08:45 AM
WESTLAKE, Texas --(BUSINESS WIRE)--
The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of November 2023 include:
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20231214573591/en/
Core net new assets brought to the company by new and existing clients totaled $21.7 billion
Total client assets were $8.18 trillion 12% from November 2022 and up 7% compared to October 2023.
Transactional sweep cash ended November 2023 at $402.9 billion $5.0 billion $7 billion
While the company’s ‘through the cycle’ financial model continues to deliver against an evolving backdrop, lower transactional cash levels, along with softer client trading volumes and subdued securities lending activity, is expected to result in full-year 2023 revenue declining by 9.5% to 10.0% versus the previous year.
Forward-Looking Statements
This press release contains a forward-looking statement relating to full-year revenue. This forward-looking statement reflects management’s expectations as of the date hereof. Achievement of these expectations is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations.
Important factors that may cause such differences include, but are not limited to, client use of the company’s advisory solutions and other products and services; general market conditions, including the level of interest rates and equity valuations; client cash allocation decisions; client sensitivity to rates; level of client assets, including cash balances; competitive pressures on pricing; balance sheet positioning relative to changes in interest rates; interest earning asset mix and growth; the level and mix of client trading activity; market volatility; securities lending; and margin loan balances. Other important factors include the company’s ability to support client activity levels; monetize client assets; and other factors set forth in the company’s most recent reports on Form 10-K and Form 10-Q.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 34.7 million active brokerage accounts, 5.2 million workplace plan participant accounts, 1.8 million banking accounts, and $8.18 trillion 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 November 2023
2022
2023
Change
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Mo. Yr.
Market Indices (at month end)
Dow Jones Industrial Average®
34,590
33,147
34,086
32,657
33,274
34,098
32,908
34,408
35,560
34,722
33,508
33,053
35,951
9
%
4
%
Nasdaq Composite®
11,468
10,466
11,585
11,456
12,222
12,227
12,935
13,788
14,346
14,035
13,219
12,851
14,226
11
%
24
%
Standard & Poor’s® 500
4,080
3,840
4,077
3,970
4,109
4,169
4,180
4,450
4,589
4,508
4,288
4,194
4,568
9
%
12
%
Client Assets (in billions of dollars)
Beginning Client Assets
7,004.6
7,320.6
7,049.8
7,480.6
7,380.2
7,580.0
7,631.5
7,650.2
8,015.8
8,241.0
8,094.7
7,824.5
7,653.4
Net New Assets (1)
33.1
53.3
36.1
41.7
72.9
13.6
24.6
33.8
12.9
8.1
27.2
5.0
19.2
N/M
(42
%)
Net Market Gains (Losses)
282.9
(324.1
)
394.7
(142.1
)
126.9
37.9
(5.9
)
331.8
212.3
(154.4
)
(297.4
)
(176.1
)
508.0
Total Client Assets (at month end)
7,320.6
7,049.8
7,480.6
7,380.2
7,580.0
7,631.5
7,650.2
8,015.8
8,241.0
8,094.7
7,824.5
7,653.4
8,180.6
7
%
12
%
Core Net New Assets (2)
33.1
53.3
36.1
41.7
53.9
(2.3
)
20.7
33.8
13.7
4.9
27.1
11.3
21.7
92
%
(34
%)
Receiving Ongoing Advisory Services (at month end)
Investor Services
514.0
499.8
524.6
515.5
526.2
530.7
526.3
547.5
560.6
552.2
533.0
522.2
557.0
7
%
8
%
Advisor Services (3)
3,270.5
3,173.4
3,345.4
3,289.6
3,369.3
3,394.9
3,377.8
3,527.8
3,619.8
3,554.2
3,448.0
3,380.3
3,604.4
7
%
10
%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts (4)
33,636
33,758
33,878
34,010
34,120
34,248
34,311
34,382
34,434
34,440
34,540
34,571
34,672
-
3
%
Banking Accounts
1,705
1,716
1,729
1,733
1,746
1,757
1,768
1,781
1,792
1,798
1,799
1,812
1,825
1
%
7
%
Workplace Plan Participant Accounts (5)
4,810
4,807
4,817
4,839
4,845
4,869
4,962
5,003
5,030
5,037
5,141
5,212
5,212
-
8
%
Client Activity
New Brokerage Accounts (in thousands)
303
330
344
320
378
331
314
315
303
311
280
284
286
1
%
(6
%)
Client Cash as a Percentage of Client Assets (6,7)
11.5
%
12.2
%
11.5
%
11.6
%
11.2
%
10.8
%
10.9
%
10.5
%
10.2
%
10.4
%
10.8
%
11.2
%
10.7
%
(50) bp
(80) bp
Derivative Trades as a Percentage of Total Trades
24.6
%
23.2
%
23.0
%
23.5
%
22.8
%
23.4
%
23.5
%
23.9
%
23.0
%
24.4
%
24.2
%
23.2
%
23.1
%
(10) bp
(150) bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (8)
527,019
520,100
512,893
503,122
497,627
493,215
483,438
479,752
466,659
449,483
444,864
438,522
439,118
-
(17
%)
Average Margin Balances
66,011
64,759
60,211
60,575
60,848
60,338
60,250
61,543
63,040
64,226
64,014
63,946
61,502
(4
%)
(7
%)
Average Bank Deposit Account Balances (9)
130,479
126,953
122,387
115,816
109,392
104,775
103,149
102,917
102,566
101,928
100,404
97,893
94,991
(3
%)
(27
%)
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (10,11) (in millions of dollars)
Equities
3,777
(1,837
)
7,236
5,850
(3,234
)
1,126
(1,366
)
9,190
7,423
(278
)
675
(3,039
)
6,099
Hybrid
(2,052
)
(1,595
)
(433
)
47
(1,641
)
(462
)
(889
)
(903
)
(407
)
(1,037
)
(828
)
(1,457
)
(1,466
)
Bonds
(3,721
)
(3,260
)
5,646
4,281
6,158
2,575
2,029
3,302
2,515
4,696
2,723
1,094
255
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (10)
(17,143
)
(21,851
)
552
(2,338
)
(7,423
)
(4,904
)
(7,157
)
(4,485
)
(3,333
)
(6,476
)
(5,853
)
(12,245
)
(9,267
)
Exchange-Traded Funds (11)
15,147
15,159
11,897
12,516
8,706
8,143
6,931
16,074
12,864
9,857
8,423
8,843
14,155
Money Market Funds
16,929
27,778
24,285
23,347
27,106
6,291
15,256
9,112
7,911
16,869
13,388
16,976
11,670
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 CDs - including March 2023 which reflects inflows of $19.0 billion $5.4 billion $6.2 billion $0.8 billion $12.0 billion
(2)
Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $10 billion
(3)
Excludes Retirement Business Services.
(4)
November 2022 includes the Company-initiated closure of approximately 350 thousand low-balance accounts.
(5)
Beginning October 2023, Retirement Plan Participants was expanded to include accounts in Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business. Prior periods have been recast to reflect this change.
(6)
Schwab One® , certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets.
(7)
Beginning July 2023, client cash as a percentage of client assets excludes brokered CDs issued by Charles Schwab Bank. Prior periods have been recast to reflect this change.
(8)
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.
(9)
Represents average clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions.
(10)
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.
(11)
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.
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INVESTORS/ANALYSTS:
Source: The Charles Schwab Corporation
What were the core net new assets brought to The Charles Schwab Corporation in November 2023?
The core net new assets totaled $21.7 billion.
What were the total client assets as of November 2023?
Total client assets were $8.18 trillion, marking a 12% increase from November 2022 and a 7% increase from October 2023.
What was the increase in transactional sweep cash in November 2023?
Transactional sweep cash saw a significant increase of $5.0 billion, the largest monthly build since March 2022.
What is the anticipated revenue trend for full-year 2023?
The company anticipates a 9.5% to 10.0% decline in full-year 2023 revenue due to lower transactional cash levels, subdued securities lending activity, and softer client trading volumes.
