Schwab Reports Monthly Activity Highlights
September 16 2019 - 08:45AM
Business Wire
The Charles Schwab Corporation released its Monthly Activity
Report today. Company highlights for the month of August 2019
include:
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- Core net new assets brought to the company by new and existing
clients totaled $19.9 billion. Net new assets excluding mutual fund
clearing totaled $17.7 billion.
- Total client assets were $3.72 trillion as of month-end August,
up 5% from August 2018 and down 1% compared to July 2019.
- Average interest-earning assets on the company’s balance sheet
were $265.0 billion in August, up 2% from August 2018 and up
slightly compared to July 2019.
CFO Peter Crawford commented, “We recently initiated a process
to review our cost base to ensure we remain properly positioned to
serve clients while navigating a more challenging operating
environment. Last Tuesday, we notified our employees that, based on
this review, we have decided to eliminate approximately 600
positions, or 3% of our current workforce. Impacted positions span
all staffing grades, as well as organizations and locations across
the company. These actions are expected to result in pre-tax
charges of approximately $60 million in the third quarter of 2019.
We view this as a prudent step in managing expenses while
continuing to invest in important initiatives to enhance growth,
drive greater efficiency, and improve the client experience. Guided
by our ‘Through Clients’ Eyes’ strategy, we remain committed to
offering our ‘no trade-offs’ combination of value, service,
transparency, and trust, regardless of the environment.”
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading
provider of financial services, with more than 365 offices and 12.1
million active brokerage accounts, 1.7 million corporate retirement
plan participants, 1.4 million banking accounts, and $3.72 trillion
in client assets as of August 31, 2019. 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 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 banking subsidiary, Charles
Schwab Bank (member FDIC and an Equal Housing Lender), provides
banking and lending services and products. More information is
available at https://www.schwab.com and
https://www.aboutschwab.com.
The Charles Schwab Corporation Monthly Activity Report For
August 2019
2018
2019
Change Aug Sep
Oct Nov Dec
Jan Feb Mar
Apr May Jun
Jul Aug Mo.
Yr. Market Indices (at month
end) Dow Jones Industrial Average
25,965
26,458
25,116
25,538
23,327
25,000
25,916
25,929
26,593
24,815
26,600
26,864
26,403
(2%)
2%
Nasdaq Composite
8,110
8,046
7,306
7,331
6,635
7,282
7,533
7,729
8,095
7,453
8,006
8,175
7,963
(3%)
(2%)
Standard & Poor’s 500
2,902
2,914
2,712
2,760
2,507
2,704
2,784
2,834
2,946
2,752
2,942
2,980
2,926
(2%)
1%
Client Assets (in billions of dollars)
Beginning Client Assets
3,477.9
3,555.9
3,563.7
3,388.1
3,431.9
3,252.2
3,447.7
3,533.0
3,585.4
3,668.5
3,530.6
3,702.4
3,746.7
Net New Assets
20.8
16.4
14.9
15.6
24.8
15.1
18.3
18.3
(0.3
)
17.3
20.2
19.3
19.9
3%
(4%)
Net Market Gains (Losses)
57.2
(8.6
)
(190.5
)
28.2
(204.5
)
180.4
67.0
34.1
83.4
(155.2
)
151.6
25.0
(50.1
)
Total Client Assets (at month end)
3,555.9
3,563.7
3,388.1
3,431.9
3,252.2
3,447.7
3,533.0
3,585.4
3,668.5
3,530.6
3,702.4
3,746.7
3,716.5
(1%)
5%
Core Net New Assets (1)
20.8
16.4
14.9
15.6
24.8
15.1
18.3
18.3
(0.3
)
17.3
20.2
19.3
19.9
3%
(4%)
Receiving Ongoing Advisory Services (at month end)
Investor Services
292.0
292.7
280.3
284.7
272.4
286.9
294.2
298.4
305.7
298.5
311.6
314.8
314.2
-
8%
Advisor Services (2)
1,555.3
1,559.2
1,485.8
1,510.1
1,436.1
1,514.2
1,551.6
1,572.8
1,608.0
1,554.6
1,626.6
1,646.1
1,635.7
(1%)
5%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts (3)
11,310
11,423
11,479
11,529
11,593
11,653
11,712
11,787
11,870
11,929
11,967
12,026
12,085
-
7%
Banking Accounts (4)
1,274
1,283
1,289
1,297
1,302
1,312
1,313
1,300
1,310
1,323
1,336
1,352
1,361
1%
7%
Corporate Retirement Plan Participants
1,621
1,627
1,634
1,639
1,655
1,679
1,685
1,684
1,690
1,699
1,698
1,701
1,711
1%
6%
Client Activity
New Brokerage Accounts (in thousands)
132
119
133
115
132
131
115
140
147
123
116
129
126
(2%)
(5%)
Inbound Calls (in thousands)
1,964
1,715
1,976
1,681
1,839
1,924
1,742
1,882
1,966
1,671
1,595
1,773
1,759
(1%)
(10%)
Web Logins (in thousands)
62,797
53,923
59,261
54,654
53,920
64,563
60,121
63,692
65,669
61,522
60,824
65,809
63,928
(3%)
2%
Client Cash as a Percentage of Client Assets (5)
10.4
%
10.3
%
11.1
%
11.2
%
12.8
%
11.7
%
11.5
%
11.3
%
10.9
%
11.3
%
10.9
%
11.0
%
11.3
%
30 bp
90 bp
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (6, 7) (in millions of dollars)
Large Capitalization Stock
918
311
308
331
717
1,343
1,109
1,045
980
1,114
206
717
328
Small / Mid Capitalization Stock
(186
)
151
(1,344
)
(456
)
(1,414
)
1,329
638
302
136
(190
)
18
10
(374
)
International
186
(88
)
(109
)
(418
)
(2,163
)
2,212
1,086
1,274
863
(100
)
225
744
(1,390
)
Specialized
(245
)
73
(914
)
(397
)
(2,105
)
124
609
750
(109
)
(440
)
341
418
353
Hybrid
(678
)
(324
)
(1,313
)
(1,248
)
(2,985
)
(321
)
(309
)
(357
)
(228
)
(316
)
(181
)
(366
)
(569
)
Taxable Bond
965
1,371
(351
)
(836
)
(4,342
)
3,956
2,871
1,923
3,029
1,821
2,378
3,806
2,725
Tax-Free Bond
559
262
(591
)
(407
)
(409
)
1,184
1,111
1,133
760
1,057
682
960
760
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (6)
(1,936
)
(1,538
)
(5,734
)
(7,955
)
(21,372
)
6,740
2,312
1,850
1,860
86
7
2,151
(1,281
)
Exchange-Traded Funds (7)
3,455
3,294
1,420
4,524
8,671
3,087
4,803
4,220
3,571
2,860
3,662
4,138
3,114
Money Market Funds
704
(1,933
)
2,546
8,515
13,548
4,944
(1,577
)
1,785
(2,097
)
5,067
4,570
6,143
6,068
Average Interest-Earning Assets (8)
(in millions of dollars)
259,137
261,741
264,156
265,648
274,913
277,068
270,718
272,727
270,308
263,718
262,759
263,993
265,005
-
2%
(1)
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. These
flows may span multiple reporting periods.
(2)
Excludes Retirement Business Services.
(3)
In September 2018, the definition of active brokerage accounts was
standardized across all account types as accounts with activity
within the preceding 270 days. This change increased active
accounts by approximately 63,000.
(4)
In March 2019, banking accounts were reduced by approximately
23,000 as a result of inactive account closures.
(5)
Schwab One®, certain cash equivalents, bank deposits and money
market fund balances as a percentage of total client assets.
(6)
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.
(7)
Represents the principal value of client ETF transactions handled
by Schwab, including transactions in proprietary ETFs.
(8)
Represents average total interest-earning assets on the company's
balance sheet.
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version on businesswire.com: https://www.businesswire.com/news/home/20190916005220/en/
MEDIA: Mayura Hooper Charles Schwab Phone:
415-667-1525
INVESTORS/ANALYSTS: Rich Fowler Charles
Schwab Phone: 415-667-1841
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