Schwab Reports Monthly Activity Highlights

Rhea-AI Summary

Charles Schwab has released its October 2024 Monthly Activity Report, highlighting significant financial metrics. The company attracted $24.6 billion in core net new assets and $21.0 billion in net new assets excluding mutual fund clearing. Total client assets reached $9.85 trillion, marking a 29% increase year-over-year but a 1% decrease from September 2024. Transactional sweep cash grew by $10.0 billion to $394.0 billion compared to the previous month.

Positive

• Core net new assets growth of $24.6 billion
• 29% year-over-year increase in total client assets to $9.85 trillion
• $10.0 billion increase in transactional sweep cash to $394.0 billion

Negative

• 1% month-over-month decrease in total client assets

Insights

Financial Analyst

The October activity report shows robust capital inflows with $24.6 billion in core net new assets, demonstrating Schwab's continued strong market position and client trust. Total client assets reached $9.85 trillion, marking a substantial 29% year-over-year growth despite a slight monthly decline. The $10 billion increase in transactional sweep cash to $394 billion indicates improving cash management trends and potential for higher interest revenue. These metrics suggest Schwab is maintaining momentum in asset gathering and effectively navigating the current interest rate environment, though monthly asset fluctuations reflect broader market movements.

WESTLAKE, Texas--(BUSINESS WIRE)-- The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of October 2024 include:

• Core net new assets brought to the company by new and existing clients totaled $24.6 billion. Net new assets excluding mutual fund clearing totaled $21.0 billion.
• Total client assets equaled $9.85 trillion as of month-end October, up 29% from October 2023 and down 1% compared to September 2024.
• Transactional sweep cash ended October at $394.0 billion, representing an increase of $10.0 billion versus the prior month.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 36.1 million active brokerage accounts, 5.4 million workplace plan participant accounts, 2.0 million banking accounts, and $9.85 trillion in client assets as of October 31, 2024. 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 subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its 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.

The Charles Schwab Corporation Monthly Activity Report For October 2024
		2023									2024																														Change
		Oct			Nov			Dec			Jan			Feb			Mar			Apr			May			Jun			Jul			Aug			Sep			Oct			Mo.		Yr.
Market Indices (at month end)
Dow Jones Industrial Average®		33,053			35,951			37,690			38,150			38,996			39,807			37,816			38,686			39,119			40,843			41,563			42,330			41,763			(1%)		26%
Nasdaq Composite®		12,851			14,226			15,011			15,164			16,092			16,379			15,658			16,735			17,733			17,599			17,714			18,189			18,095			(1%)		41%
Standard & Poor’s® 500		4,194			4,568			4,770			4,846			5,096			5,254			5,036			5,278			5,460			5,522			5,648			5,762			5,705			(1%)		36%
Client Assets (in billions of dollars)
Beginning Client Assets		7,824.5			7,653.4			8,180.6			8,516.6			8,558.1			8,879.5			9,118.4			8,847.5			9,206.3			9,407.5			9,572.1			9,737.7			9,920.5
Net New Assets (1)		5.0			19.2			42.1			14.8			31.7			41.7			10.0			31.0			33.2			29.0			31.5			30.3			22.7			(25%)		N/M
Net Market (Losses) Gains		(176.1	)		508.0			293.9			26.7			289.7			197.2			(280.9	)		327.8			168.0			135.6			134.1			152.5			(91.2	)
Total Client Assets (at month end)		7,653.4			8,180.6			8,516.6			8,558.1			8,879.5			9,118.4			8,847.5			9,206.3			9,407.5			9,572.1			9,737.7			9,920.5			9,852.0			(1%)		29%
Core Net New Assets (1,2)		11.3			21.7			43.1			17.2			33.4			45.0			1.0			31.1			29.1			29.0			32.8			33.5			24.6			(27%)		118%
Receiving Ongoing Advisory Services (at month end)
Investor Services		522.2			557.0			581.4			584.1			601.8			618.5			602.2			624.0			632.9			649.1			663.7			675.1			665.6			(1%)		27%
Advisor Services (3)		3,380.3			3,604.4			3,757.4			3,780.4			3,902.5			4,009.5			3,893.9			4,027.3			4,090.0			4,185.4			4,268.1			4,343.8			4,303.3			(1%)		27%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts		34,571			34,672			34,838			35,017			35,127			35,301			35,426			35,524			35,612			35,743			35,859			35,982			36,073			-		4%
Banking Accounts		1,812			1,825			1,838			1,856			1,871			1,885			1,901			1,916			1,931			1,937			1,940			1,954			1,967			1%		9%
Workplace Plan Participant Accounts (4)		5,212			5,212			5,221			5,226			5,268			5,277			5,282			5,345			5,363			5,382			5,373			5,388			5,407			-		4%
Client Activity
New Brokerage Accounts (in thousands)		284			286			340			366			345			383			361			314			310			327			324			321			331			3%		17%
Client Cash as a Percentage of Client Assets (5)		11.2	%		10.7	%		10.5	%		10.5	%		10.2	%		10.0	%		10.2	%		9.9	%		9.7	%		9.6	%		9.5	%		9.5	%		9.8	%		30 bp		(140) bp
Derivative Trades as a Percentage of Total Trades		23.2	%		23.1	%		21.8	%		21.8	%		22.2	%		21.9	%		22.1	%		21.9	%		21.3	%		21.2	%		20.8	%		21.5	%		21.4	%		(10) bp		(180) bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (6)		438,522			439,118			446,305			443,694			434,822			431,456			423,532			415,950			417,150			417,379			420,191			420,203			422,327			1%		(4%)
Average Margin Balances		63,946			61,502			62,309			61,368			63,600			66,425			68,827			67,614			69,730			73,206			73,326			72,755			74,105			2%		16%
Average Bank Deposit Account Balances (7)		97,893			94,991			95,518			95,553			92,075			90,774			88,819			86,844			85,195			83,979			82,806			82,336			83,261			1%		(15%)
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (8,9) (in millions of dollars)
Equities		(3,039	)		6,099			7,903			8,182			7,624			10,379			3,472			5,734			3,379			10,908			5,609			5,217			7,176
Hybrid		(1,457	)		(1,466	)		(1,596	)		(501	)		(1,330	)		(439	)		(703	)		(558	)		(843	)		(1,155	)		(1,377	)		(432	)		(1,397	)
Bonds		1,094			255			6,104			7,510			9,883			7,561			5,949			5,854			6,346			8,651			10,919			11,015			10,442
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (8)		(12,245	)		(9,267	)		(7,406	)		(966	)		(1,348	)		(1,607	)		(4,818	)		(5,544	)		(4,254	)		(4,679	)		(4,003	)		(1,261	)		(4,905	)
Exchange-Traded Funds (9)		8,843			14,155			19,817			16,157			17,525			19,108			13,536			16,574			13,136			23,083			19,154			17,061			21,126
Money Market Funds		16,976			11,670			7,745			11,717			10,129			9,085			(2,357	)		9,790			3,858			9,110			8,048			9,672			11,032

		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. 2024 also includes an inflow of $10.3 billion from a mutual fund clearing services client in April and outflows from a large international relationship of $0.1 billion in August and $0.3 billion in October. 2023 also includes outflows from a large international relationship of $6.2 billion in October, $5.4 billion in November, and $0.6 billion in December.
(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)		Includes accounts in Stock Plan Services, Designated Brokerage Services, and Retirement Business Services; Participants may be enrolled in services in more than one Workplace business.
(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; client cash excludes brokered CDs issued by Charles Schwab Bank.
(6)		Represents average total interest-earning assets on the Company's balance sheet.
(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/20241114282831/en/

MEDIA:

Mayura Hooper

Charles Schwab

Phone: 415-667-1525

INVESTORS/ANALYSTS:

Jeff Edwards

Charles Schwab

Phone: 817-854-6177

Source: The Charles Schwab Corporation

FAQ

What was Schwab's (SCHW) total client assets in October 2024?

Schwab's total client assets were $9.85 trillion as of October 2024.

How much did Schwab (SCHW) core net new assets grow in October 2024?

Schwab's core net new assets grew by $24.6 billion in October 2024.

What was the year-over-year growth in Schwab's (SCHW) total client assets for October 2024?

Schwab's total client assets grew by 29% compared to October 2023.

How did Schwab's (SCHW) transactional sweep cash change in October 2024?

Schwab's transactional sweep cash increased by $10.0 billion to $394.0 billion in October 2024.