Schwab Reports Monthly Activity Highlights

The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of May 2020 include:

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200612005071/en/

Core net new assets brought to the company by new and existing clients totaled $17.6 billion. Core net new assets excluding mutual fund clearing totaled $17.9 billion.
Total client assets were $4.01 trillion as of month-end May, up 14% from May 2019 and up 6% compared to April 2020.
Client assets receiving ongoing advisory services were $2.05 trillion as of month-end May, up 11% from May 2019 and up 5% compared to April 2020.

Commentary from the CFO

Peter Crawford, Executive Vice President and Chief Financial Officer, provides perspective on The Charles Schwab Corporation’s recently completed acquisition of the assets of USAA’s Investment Management Company at: https://www.aboutschwab.com/cfo-commentary.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with more than 360 offices and 14.0 million active brokerage accounts, 1.7 million corporate retirement plan participants, 1.4 million banking accounts, and $4.0 trillion in client assets as of May 31, 2020. 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 May 2020

2019

2020

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

24,815

26,600

26,864

26,403

26,917

27,046

28,051

28,538

28,256

25,409

21,917

24,346

25,383

Nasdaq Composite

7,453

8,006

8,175

7,963

7,999

8,292

8,665

8,973

9,151

8,567

7,700

8,890

9,490

27%

Standard & Poor’s 500

2,752

2,942

2,980

2,926

2,977

3,038

3,141

3,231

3,226

2,954

2,585

2,912

3,044

11%

Client Assets (in billions of dollars)

Beginning Client Assets

3,668.5

3,530.6

3,702.4

3,746.7

3,716.5

3,768.4

3,854.6

3,942.2

4,038.8

4,051.6

3,862.8

3,496.9

3,778.3

Net New Assets (1)

17.3

20.2

19.3

19.9

17.4

35.2

12.0

30.1

20.9

24.4

27.9

15.3

97.5

N/M

Net Market (Losses) Gains

(155.2

)

151.6

25.0

(50.1

)

34.5

51.0

75.6

66.5

(8.1

)

(213.2

)

(393.8

)

266.1

133.2

Total Client Assets (at month end)

3,530.6

3,702.4

3,746.7

3,716.5

3,768.4

3,854.6

3,942.2

4,038.8

4,051.6

3,862.8

3,496.9

3,778.3

4,009.0

14%

Core Net New Assets (2)

17.3

20.2

19.3

19.9

17.4

24.1

12.0

30.1

20.9

24.4

27.9

15.3

17.6

15%

Receiving Ongoing Advisory Services (at month end)

Investor Services

298.5

311.6

314.8

314.2

318.5

324.6

330.8

337.1

336.8

323.2

291.5

309.9

339.8

10%

14%

Advisor Services (3)

1,554.6

1,626.6

1,646.1

1,635.7

1,659.4

1,691.6

1,728.2

1,769.7

1,773.2

1,694.0

1,531.3

1,647.9

1,711.7

10%

Client Accounts (at month end, in thousands)

Active Brokerage Accounts

11,929

11,967

12,026

12,085

12,118

12,189

12,247

12,333

12,431

12,521

12,736

12,866

14,007

17%

Banking Accounts

1,323

1,336

1,352

1,361

1,374

1,384

1,390

1,403

1,411

1,426

1,439

1,448

Corporate Retirement Plan Participants

1,699

1,698

1,701

1,711

1,718

1,735

1,743

1,748

1,732

1,726

1,721

1,696

1,714

Client Activity

New Brokerage Accounts (in thousands) (4)

123

116

129

126

108

142

127

164

167

159

283

201

1,250

N/M

Inbound Calls (in thousands)

1,671

1,595

1,773

1,759

1,570

1,771

1,605

1,884

1,947

1,831

2,366

1,824

1,736

(5%)

Web Logins (in thousands)

61,522

60,824

65,809

63,928

63,530

72,547

66,394

69,733

77,716

76,941

97,523

92,491

93,803

52%

Client Cash as a Percentage of Client Assets (5)

11.3%

10.9%

11.0%

11.3%

11.4%

11.3%

12.0%

15.1%

14.3%

14.0%

(30) bp

270 bp

Mutual Fund and Exchange-Traded Fund

Net Buys (Sells) (6, 7) (in millions of dollars)

Large Capitalization Stock

1,114

206

717

328

900

1,406

991

845

(178

)

984

(693

)

(768

)

Small / Mid Capitalization Stock

(190

)

(374

)

(212

)

(458

)

201

(314

)

(531

)

(954

)

151

(401

)

International

(100

)

225

744

(1,390

)

(355

)

340

735

993

1,360

132

(2,116

)

(2,207

)

(1,953

)

Specialized

(440

)

341

418

353

583

618

484

455

762

397

333

2,059

1,512

Hybrid

(316

)

(181

)

(366

)

(569

)

(372

)

(202

)

(290

)

(96

)

615

(257

)

(4,790

)

(860

)

(518

)

Taxable Bond

1,821

2,378

3,806

2,725

2,935

2,813

2,274

4,710

5,714

3,830

(23,142

)

1,642

5,469

Tax-Free Bond

1,057

682

960

760

593

809

860

1,255

1,481

1,066

(5,229

)

(242

)

805

Net Buy (Sell) Activity (in millions of dollars)

Mutual Funds (6)

2,151

(1,281

)

(573

)

(473

)

(761

)

1,097

2,684

(565

)

(34,382

)

(3,863

)

(564

)

Exchange-Traded Funds (7)

2,860

3,662

4,138

3,114

3,768

5,293

6,303

7,412

7,779

5,024

(532

)

3,713

4,710

Money Market Funds

5,067

4,570

6,143

6,068

5,833

7,059

4,768

1,515

1,911

1,312

(1,233

)

8,465

4,833

Average Interest-Earning Assets (8)

(in millions of dollars)

263,718

262,759

263,993

265,005

266,430

266,089

268,254

274,911

279,437

278,966

317,850

353,018

361,814

37%

(1)

May 2020 includes inflows of $79.9 billion related to the acquisition of USAA Investment Management Company. October 2019 includes an inflow of $11.1 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. These flows may span multiple reporting periods.

(3)

Excludes Retirement Business Services.

(4)

May 2020 includes 1.1 million new brokerage accounts related to the acquisition of USAA Investment Management Company.

(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. N/M - Not meaningful

View source version on businesswire.com: https://www.businesswire.com/news/home/20200612005071/en/

MEDIA: Mayura Hooper Charles Schwab Phone: 415-667-1525

INVESTORS/ANALYSTS: Rich Fowler Charles Schwab Phone: 415-667-1841

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