SCHW Charles Schwab Corporation

The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of October 2023 include:

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20231114733738/en/

• Core net new assets brought to the company excluding Ameritrade brokerage originated clients equaled $16.1 billion for the month, while total core net new assets across all clients totaled $11.3 billion in October. These flows reflect expected attrition from former Ameritrade clients as well as delayed tax disbursements by clients in certain states such as California.
• Total client assets were $7.65 trillion as of month-end October, up 9% from October 2022 and down 2% compared to September 2023.
• Client cash on the balance sheet plus bank deposit account balances ended the month at $397.9 billion, as client tax disbursements and seasonal advisory fee payments influenced the October trend. Equaling 5.2% at October month-end, the ratio of transactional sweep cash to total client assets has remained relatively stable since July.
• In an effort to further enhance transparency regarding all the components of client cash, the company has added incremental data to the Monthly Activity Report Supplement available on the Investor Relations website.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 34.6 million active brokerage accounts, 5.2 million workplace plan participant accounts, 1.8 million banking accounts, and $7.65 trillion in client assets as of October 31, 2023. 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 subsidiaries, Charles Schwab & Co., Inc., TD Ameritrade, Inc., and TD Ameritrade Clearing, Inc. (members SIPC, 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 October 2023  

2022

 

 

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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®

32,733

 

34,590

 

33,147

 

34,086

 

32,657

 

33,274

 

34,098

 

32,908

 

34,408

 

35,560

 

34,722

 

33,508

 

33,053

 

(1%)

1%

Nasdaq Composite®

10,988

 

11,468

 

10,466

 

11,585

 

11,456

 

12,222

 

12,227

 

12,935

 

13,788

 

14,346

 

14,035

 

13,219

 

12,851

 

(3%)

17%

Standard & Poor’s® 500

3,872

 

4,080

 

3,840

 

4,077

 

3,970

 

4,109

 

4,169

 

4,180

 

4,450

 

4,589

 

4,508

 

4,288

 

4,194

 

(2%)

8%

Client Assets (in billions of dollars)

 

 

Beginning Client Assets

6,644.2

 

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

 

 

 

Net New Assets (1)

42.0

 

33.1

 

53.3

 

36.1

 

41.7

 

72.9

 

13.6

 

24.6

 

33.8

 

12.9

 

8.1

 

27.2

 

5.0

 

(82%)

(88%)

Net Market Gains (Losses)

318.4

 

282.9

 

(324.1

)

394.7

 

(142.1

)

126.9

 

37.9

 

(5.9

)

331.8

 

212.3

 

(154.4

)

(297.4

)

(176.1

)

 

 

Total Client Assets (at month end)

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

 

(2%)

9%

Core Net New Assets (2)

42.0

 

33.1

 

53.3

 

36.1

 

41.7

 

53.9

 

(2.3

)

20.7

 

33.8

 

13.7

 

4.9

 

27.1

 

11.3

 

(58%)

(73%)

Receiving Ongoing Advisory Services (at month end)

 

 

Investor Services

487.3

 

514.0

 

499.8

 

524.6

 

515.5

 

526.2

 

530.7

 

526.3

 

547.5

 

560.6

 

552.2

 

533.0

 

522.2

 

(2%)

7%

Advisor Services (3)

3,106.0

 

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

 

(2%)

9%

Client Accounts (at month end, in thousands)

 

 

Active Brokerage Accounts (4)

33,896

 

33,636

 

33,758

 

33,878

 

34,010

 

34,120

 

34,248

 

34,311

 

34,382

 

34,434

 

34,440

 

34,540

 

34,571

 

-

2%

Banking Accounts

1,706

 

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%

6%

Workplace Plan Participant Accounts (5)

4,826

 

4,810

 

4,807

 

4,817

 

4,839

 

4,845

 

4,869

 

4,962

 

5,003

 

5,030

 

5,037

 

5,141

 

5,212

 

1%

8%

Client Activity

 

 

New Brokerage Accounts (in thousands)

298

 

303

 

330

 

344

 

320

 

378

 

331

 

314

 

315

 

303

 

311

 

280

 

284

 

1%

(5%)

Client Cash as a Percentage of Client Assets (6,7)

12.2

%

11.5

%

12.2

%

11.5

%

11.6

%

11.2

%

10.8

%

10.9

%

10.5

%

10.2

%

10.4

%

10.8

%

11.2

%

40 bp

(100) bp

Derivative Trades as a Percentage of Total Trades

24.1

%

24.6

%

23.2

%

23.0

%

23.5

%

22.8

%

23.4

%

23.5

%

23.9

%

23.0

%

24.4

%

24.2

%

23.2

%

(100) bp

(90) bp

Selected Average Balances (in millions of dollars)

 

 

Average Interest-Earning Assets (8)

552,631

 

527,019

 

520,100

 

512,893

 

503,122

 

497,627

 

493,215

 

483,438

 

479,752

 

466,659

 

449,483

 

444,864

 

438,522

 

(1%)

(21%)

Average Margin Balances

69,188

 

66,011

 

64,759

 

60,211

 

60,575

 

60,848

 

60,338

 

60,250

 

61,543

 

63,040

 

64,226

 

64,014

 

63,946

 

-

(8%)

Average Bank Deposit Account Balances (9)

136,036

 

130,479

 

126,953

 

122,387

 

115,816

 

109,392

 

104,775

 

103,149

 

102,917

 

102,566

 

101,928

 

100,404

 

97,893

 

(3%)

(28%)

Mutual Fund and Exchange-Traded Fund Net Buys (Sells) (10,11) (in millions of dollars) Equities

3,984

 

3,777

 

(1,837

)

7,236

 

5,850

 

(3,234

)

1,126

 

(1,366

)

9,190

 

7,423

 

(278

)

675

 

(3,039

)

Hybrid

(1,380

)

(2,052

)

(1,595

)

(433

)

47

 

(1,641

)

(462

)

(889

)

(903

)

(407

)

(1,037

)

(828

)

(1,457

)

Bonds

(7,218

)

(3,721

)

(3,260

)

5,646

 

4,281

 

6,158

 

2,575

 

2,029

 

3,302

 

2,515

 

4,696

 

2,723

 

1,094

 

Net Buy (Sell) Activity (in millions of dollars) Mutual Funds (10)

(18,473

)

(17,143

)

(21,851

)

552

 

(2,338

)

(7,423

)

(4,904

)

(7,157

)

(4,485

)

(3,333

)

(6,476

)

(5,853

)

(12,245

)

Exchange-Traded Funds (11)

13,859

 

15,147

 

15,159

 

11,897

 

12,516

 

8,706

 

8,143

 

6,931

 

16,074

 

12,864

 

9,857

 

8,423

 

8,843

 

Money Market Funds

21,542

 

16,929

 

27,778

 

24,285

 

23,347

 

27,106

 

6,291

 

15,256

 

9,112

 

7,911

 

16,869

 

13,388

 

16,976

 

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 from off-platform Schwab Bank Retail CDs issued year-to-date through March 31, 2023. October 2023 also includes an outflow of $6.2 billion from an international relationship. September 2023 also includes an outflow of $0.8 billion from an international relationship. April 2023 also includes an inflow of $12.0 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, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods.

(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.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231114733738/en/

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

INVESTORS/ANALYSTS: Jeff Edwards Charles Schwab Phone: 415-667-1524