Schwab Reports Monthly Activity Highlights
-
Core net new assets brought to the company by new and existing clients totaled
, as this year’s tax season followed a normal schedule for the first time since 2019. Net new assets excluding mutual fund clearing totaled$32.8 billion .$34.2 billion -
Total client assets were
as of month-end May, down$7.30 trillion 1% fromMay 2021 and flat compared toApril 2022 . -
Client cash as a percentage of assets was
12.0% as of month-end May, compared with10.8% inMay 2021 and11.9% inApril 2022 .
CFO
Forward-Looking Statements
This press release contains forward-looking statements relating to Schwab’s business momentum; expected sequential revenue growth in the second quarter; and anticipated second quarter GAAP expenses. Achievement of these expectations, beliefs, and objectives 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, general market conditions, including equity valuations and the level of interest rates; the level and mix of client trading activity; margin loan balances; securities lending; competitive pressures on pricing; client cash sorting; client sensitivity to rates; the level of client assets, including cash balances; market volatility; the company’s ability to attract and retain clients and registered investment advisors and grow those relationships and associated client assets; the company’s ability to monetize client assets; the company’s ability to support client activity levels and attract and retain talent; balance sheet positioning relative to changes in interest rates; interest earning asset mix and growth; the company’s ability to manage expenses; integration-related and other technology projects; compensation; capital expenditures; the effect of adverse developments in litigation or regulatory matters and the extent of any charges associated with such matters; 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 Monthly Activity Report For |
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2021 |
2022 |
Change | |||||||||||||||||||||||||||||||||||||||||||
May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Mo. | Yr. | |||||||||||||||||||||||||||||||
Market Indices (at month end) |
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Dow Jones Industrial Average® |
34,529 |
|
34,503 |
|
34,935 |
|
35,361 |
|
33,844 |
|
35,820 |
|
34,484 |
|
36,338 |
|
35,132 |
|
33,893 |
|
34,678 |
|
32,977 |
|
32,990 |
|
- |
( |
|||||||||||||||||
Nasdaq Composite® |
13,749 |
|
14,504 |
|
14,673 |
|
15,259 |
|
14,449 |
|
15,498 |
|
15,538 |
|
15,645 |
|
14,240 |
|
13,751 |
|
14,221 |
|
12,335 |
|
12,081 |
|
( |
( |
|||||||||||||||||
Standard & Poor’s® 500 |
4,204 |
|
4,298 |
|
4,395 |
|
4,523 |
|
4,308 |
|
4,605 |
|
4,567 |
|
4,766 |
|
4,516 |
|
4,374 |
|
4,530 |
|
4,132 |
|
4,132 |
|
- |
( |
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Client Assets (in billions of dollars) |
|
|
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Beginning Client Assets |
7,336.1 |
|
7,395.7 |
|
7,574.8 |
|
7,642.7 |
|
7,838.2 |
|
7,614.0 |
|
7,982.3 |
|
7,918.3 |
|
8,138.0 |
|
7,803.8 |
|
7,686.6 |
|
7,862.1 |
|
7,284.4 |
|
|
|
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Net New Assets (1) |
28.1 |
|
43.5 |
|
44.3 |
|
51.8 |
|
42.9 |
|
22.9 |
|
31.4 |
|
80.3 |
|
33.6 |
|
40.6 |
|
46.3 |
|
(9.2 |
) |
32.8 |
|
N/M |
|
|||||||||||||||||
|
31.5 |
|
135.6 |
|
23.6 |
|
143.7 |
|
(267.1 |
) |
345.4 |
|
(95.4 |
) |
139.4 |
|
(367.8 |
) |
(157.8 |
) |
129.2 |
|
(568.5 |
) |
(15.5 |
) |
|
|
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Total Client Assets (at month end) |
7,395.7 |
|
7,574.8 |
|
7,642.7 |
|
7,838.2 |
|
7,614.0 |
|
7,982.3 |
|
7,918.3 |
|
8,138.0 |
|
7,803.8 |
|
7,686.6 |
|
7,862.1 |
|
7,284.4 |
|
7,301.7 |
|
- |
( |
|||||||||||||||||
Core Net New Assets (2) |
28.1 |
|
43.5 |
|
44.3 |
|
51.8 |
|
42.9 |
|
36.8 |
|
45.1 |
|
80.3 |
|
33.6 |
|
40.6 |
|
46.3 |
|
(9.2 |
) |
32.8 |
|
N/M |
|
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Receiving Ongoing Advisory Services (at month end) |
|
|
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Investor Services |
517.8 |
|
525.1 |
|
531.9 |
|
542.5 |
|
530.1 |
|
548.3 |
|
543.1 |
|
559.2 |
|
541.9 |
|
533.7 |
|
538.9 |
|
509.3 |
|
513.0 |
|
|
( |
|||||||||||||||||
Advisor Services (3) |
3,150.4 |
|
3,209.3 |
|
3,256.5 |
|
3,333.4 |
|
3,253.2 |
|
3,399.8 |
|
3,374.3 |
|
3,505.2 |
|
3,382.4 |
|
3,342.5 |
|
3,404.6 |
|
3,190.5 |
|
3,213.8 |
|
|
|
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Client Accounts (at month end, in thousands) |
|
|
|||||||||||||||||||||||||||||||||||||||||||
Active Brokerage Accounts |
32,110 |
|
32,265 |
|
32,386 |
|
32,513 |
|
32,675 |
|
32,796 |
|
32,942 |
|
33,165 |
|
33,308 |
|
33,421 |
|
33,577 |
|
33,759 |
|
33,822 |
|
- |
|
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Banking Accounts |
1,584 |
|
1,574 |
|
1,578 |
|
1,594 |
|
1,580 |
|
1,593 |
|
1,608 |
|
1,614 |
|
1,628 |
|
1,641 |
|
1,641 |
|
1,652 |
|
1,658 |
|
- |
|
|||||||||||||||||
Corporate Retirement Plan Participants |
2,130 |
|
2,149 |
|
2,159 |
|
2,188 |
|
2,207 |
|
2,213 |
|
2,198 |
|
2,200 |
|
2,216 |
|
2,235 |
|
2,246 |
|
2,261 |
|
2,275 |
|
|
|
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Client Activity |
|
|
|||||||||||||||||||||||||||||||||||||||||||
New Brokerage Accounts (in thousands) |
549 |
|
499 |
|
402 |
|
402 |
|
374 |
|
397 |
|
448 |
|
473 |
|
426 |
|
356 |
|
420 |
|
386 |
|
323 |
|
( |
( |
|||||||||||||||||
Client Cash as a Percentage of Client Assets (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
10 bp |
120 bp |
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Derivative Trades as a Percentage of Total Trades |
|
|
|
|
|
|
|
|
|
|
|
|
|
70 bp |
170 bp |
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Selected Average Balances (in millions of dollars) |
|
|
|||||||||||||||||||||||||||||||||||||||||||
Average Interest-Earning Assets (5) |
528,642 |
|
536,146 |
|
546,579 |
|
552,372 |
|
565,379 |
|
574,181 |
|
584,362 |
|
605,709 |
|
622,997 |
|
629,042 |
|
644,768 |
|
636,668 |
|
620,157 |
|
( |
|
|||||||||||||||||
Average Margin Balances |
75,921 |
|
78,410 |
|
79,910 |
|
81,021 |
|
81,705 |
|
83,835 |
|
87,311 |
|
88,328 |
|
86,737 |
|
84,354 |
|
81,526 |
|
83,762 |
|
78,841 |
|
( |
|
|||||||||||||||||
Average Bank Deposit Account Balances (6) |
160,459 |
|
161,377 |
|
151,275 |
|
150,896 |
|
152,330 |
|
154,040 |
|
153,877 |
|
154,918 |
|
157,706 |
|
153,824 |
|
155,657 |
|
152,653 |
|
154,669 |
|
|
( |
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|
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Equities |
9,854 |
|
10,873 |
|
7,418 |
|
8,808 |
|
7,596 |
|
8,840 |
|
13,099 |
|
11,519 |
|
7,384 |
|
9,371 |
|
14,177 |
|
(786 |
) |
1,889 |
|
|||||||||||||||||||
Hybrid |
1 |
|
390 |
|
666 |
|
569 |
|
335 |
|
81 |
|
308 |
|
(1,207 |
) |
(367 |
) |
(478 |
) |
(497 |
) |
(529 |
) |
(1,718 |
) |
|||||||||||||||||||
Bonds |
5,906 |
|
10,101 |
|
6,917 |
|
8,044 |
|
6,232 |
|
4,425 |
|
4,097 |
|
5,600 |
|
1,804 |
|
(1,973 |
) |
(7,851 |
) |
(6,933 |
) |
(6,121 |
) |
|||||||||||||||||||
|
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Mutual Funds (7) |
2,022 |
|
5,872 |
|
2,644 |
|
3,876 |
|
(308 |
) |
302 |
|
189 |
|
(2,859 |
) |
(4,961 |
) |
(6,318 |
) |
(11,888 |
) |
(16,657 |
) |
(20,761 |
) |
|||||||||||||||||||
Exchange-Traded Funds (8) |
13,739 |
|
15,492 |
|
12,357 |
|
13,545 |
|
14,471 |
|
13,044 |
|
17,315 |
|
18,771 |
|
13,782 |
|
13,238 |
|
17,717 |
|
8,409 |
|
14,811 |
|
|||||||||||||||||||
Money Market Funds |
(3,988 |
) |
(3,806 |
) |
(2,501 |
) |
(1,372 |
) |
(1,512 |
) |
(451 |
) |
(1,725 |
) |
(144 |
) |
(1,984 |
) |
(1,086 |
) |
(1,344 |
) |
(3,430 |
) |
7,106 |
|
Note: Certain supplemental details related to the information above can be found at: https://www.aboutschwab.com/financial-reports. | ||||||||||||||||||||||||||||||
(1) |
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(2) |
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Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than |
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(3) |
|
Excludes Retirement Business Services. |
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(4) |
|
Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets. |
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(5) |
|
Represents average total interest-earning assets on the company's balance sheet. |
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(6) |
|
Represents average TD Ameritrade clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions. |
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(7) |
|
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. |
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(8) |
|
Represents the principal value of client ETF transactions handled by Schwab, including transactions in proprietary ETFs. |
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N/M - Not meaningful. Percentage changes greater than |
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MEDIA:
Charles Schwab
Phone: 415-667-1525
INVESTORS/ANALYSTS:
Charles Schwab
Phone: 415-667-1524
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