SCHW Charles Schwab Corporation

The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of May 2021 include:

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• Core net new assets brought to the company by new and existing clients totaled $28.1 billion. Net new assets excluding mutual fund clearing totaled $27.9 billion.
• Total client assets were $7.40 trillion as of month-end May, up 84% from May 2020 and up 1% compared to April 2021.(1)
• Average interest-earning assets were $528.6 billion in May, up 46% from May 2020 and flat compared to April 2021.(1)

(1)

 

Year over year comparisons are affected by the close of the TD Ameritrade acquisition on October 6, 2020

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 32.1 million active brokerage accounts, 2.1 million corporate retirement plan participants, 1.6 million banking accounts, and $7.4 trillion in client assets as of May 31, 2021. 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 May 2021  

2020

2021

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

25,383

 

25,813

 

26,428

 

28,430

 

27,782

 

26,502

 

29,639

 

30,606

 

29,983

 

30,932

 

32,982

 

33,875

 

34,529

 

2%

 

36%

Nasdaq Composite

9,490

 

10,059

 

10,745

 

11,775

 

11,168

 

10,912

 

12,199

 

12,888

 

13,071

 

13,192

 

13,247

 

13,963

 

13,749

 

(2%)

 

45%

Standard & Poor’s® 500

3,044

 

3,100

 

3,271

 

3,500

 

3,363

 

3,270

 

3,622

 

3,756

 

3,714

 

3,811

 

3,973

 

4,181

 

4,204

 

1%

 

38%

Client Assets (in billions of dollars)

 

 

 

Beginning Client Assets

3,778.3

 

4,009.0

 

4,110.1

 

4,278.0

 

4,489.7

 

4,395.3

 

5,878.5

 

6,421.0

 

6,691.7

 

6,759.6

 

6,900.5

 

7,069.1

 

7,336.1

 

 

 

 

Net New Assets (1)

97.5

 

24.6

 

11.2

 

20.0

 

20.0

 

1,596.9

 

32.1

 

61.7

 

34.2

 

37.0

 

62.6

 

37.2

 

28.1

 

(24%)

 

(71%)

Net Market Gains (Losses)

133.2

 

76.5

 

156.7

 

191.7

 

(114.4

)

(113.7

)

510.4

 

209.0

 

33.7

 

103.9

 

106.0

 

229.8

 

31.5

 

 

 

 

Total Client Assets (at month end)

4,009.0

 

4,110.1

 

4,278.0

 

4,489.7

 

4,395.3

 

5,878.5

 

6,421.0

 

6,691.7

 

6,759.6

 

6,900.5

 

7,069.1

 

7,336.1

 

7,395.7

 

1%

 

84%

Core Net New Assets (2)

17.6

 

13.7

 

2.7

 

20.0

 

20.0

 

25.6

 

32.1

 

61.7

 

34.2

 

51.4

 

62.6

 

37.2

 

28.1

 

(24%)

 

60%

Receiving Ongoing Advisory Services (at month end) (3)

 

 

 

Investor Services

339.8

 

345.2

 

355.6

 

366.8

 

361.2

 

425.3

 

457.1

 

471.8

 

472.4

 

481.3

 

495.2

 

511.1

 

517.8

 

1%

 

52%

Advisor Services (4)

1,711.7

 

1,747.5

 

1,818.5

 

1,900.5

 

1,870.1

 

2,505.5

 

2,715.7

 

2,828.3

 

2,840.6

 

2,913.3

 

2,997.9

 

3,112.5

 

3,150.4

 

1%

 

84%

Client Accounts (at month end, in thousands)

 

 

 

Active Brokerage Accounts

14,007

 

14,107

 

14,220

 

14,311

 

14,393

 

29,013

 

29,202

 

29,629

 

30,534

 

31,523

 

31,902

 

31,877

 

32,110

 

1%

 

129%

Banking Accounts

1,448

 

1,463

 

1,480

 

1,493

 

1,486

 

1,496

 

1,504

 

1,499

 

1,518

 

1,542

 

1,608

 

1,562

 

1,584

 

1%

 

9%

Corporate Retirement Plan Participants

1,714

 

1,716

 

1,712

 

1,715

 

1,722

 

2,072

 

2,045

 

2,054

 

2,069

 

2,093

 

2,105

 

2,116

 

2,130

 

1%

 

24%

Client Activity

 

 

 

New Brokerage Accounts (in thousands) (5)

1,250

 

201

 

206

 

202

 

184

 

14,718

 

430

 

626

 

1,095

 

1,211

 

847

 

609

 

549

 

(10%)

 

(56%)

Client Cash as a Percentage of Client Assets (6)

14.0%

13.6%

13.0%

12.5%

12.8%

13.4%

12.4%

12.3%

12.2%

11.8%

11.5%

10.9%

10.8%

(10) bp

 

(320) bp

Derivative Trades as a Percentage of Total Trades

12.2%

10.6%

13.1%

13.8%

14.5%

20.5%

19.4%

18.9%

17.4%

16.6%

18.5%

20.4%

20.9%

50 bp

 

870 bp

Selected Average Balances (in millions of dollars)

 

 

 

Average Interest-Earning Assets (7,8)

361,814

 

373,986

 

379,521

 

384,690

 

392,784

 

442,119

 

466,677

 

482,394

 

517,306

 

514,885

 

520,074

 

527,194

 

528,642

 

-

 

46%

Average Margin Balances (8)

17,839

 

18,658

 

19,802

 

21,190

 

22,780

 

48,095

 

53,916

 

59,142

 

62,999

 

69,064

 

71,266

 

72,863

 

75,921

 

4%

 

N/M

Average Bank Deposit Account Balances (8,9)

-

-

-

-

-

132,030

 

162,315

 

163,463

 

167,980

 

167,433

 

164,866

 

162,392

 

160,459

 

(1%)

 

N/M

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

(1,610

)

(2,877

)

(3,280

)

(727

)

(1,372

)

(1,305

)

10,980

 

13,875

 

8,234

 

14,246

 

16,301

 

13,422

 

9,854

 

Hybrid

(518

)

(97

)

(769

)

(124

)

(12

)

(553

)

(402

)

359

 

407

 

832

 

1,133

 

877

 

1

 

Bonds

6,274

 

10,925

 

8,611

 

9,328

 

6,857

 

6,765

 

5,956

 

12,169

 

13,601

 

9,334

 

8,237

 

8,940

 

5,906

 

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

(564

)

1,768

 

(147

)

2,568

 

757

 

(2,260

)

2,832

 

6,336

 

5,713

 

6,273

 

6,190

 

5,754

 

2,022

 

Exchange-Traded Funds (11)

4,710

 

6,183

 

4,709

 

5,909

 

4,716

 

7,167

 

13,702

 

20,067

 

16,529

 

18,139

 

19,481

 

17,485

 

13,739

 

Money Market Funds

4,833

 

(5,673

)

(9,039

)

(5,614

)

(6,627

)

(4,021

)

(5,908

)

(7,332

)

(5,248

)

(4,405

)

(4,528

)

(5,153

)

(3,988

)

(1)

February 2021 includes an outflow of $14.4 billion from a mutual fund clearing services client. October 2020 includes an inflow of $1.6 trillion related to the acquisition of TD Ameritrade. July 2020 includes an inflow of $8.5 billion related to the acquisition of Wasmer, Schroeder & Company, LLC. June 2020 includes an inflow of $10.9 billion from a mutual fund clearing services client. May 2020 includes an inflow of $79.9 billion related to the acquisition of the assets of USAA’s Investment Management Company.

(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)

Beginning in December 2020, AdvisorDirect® assets are presented as Investor Services. In December 2020, $46.5 billion and $50.4 billion for October and November, respectively, were reclassed from Advisor Services to Investor Services.

(4)

Excludes Retirement Business Services.

(5)

October 2020 includes 14.5 million new brokerage accounts related to the acquisition of TD Ameritrade. May 2020 includes 1.1 million new brokerage accounts related to the acquisition of the assets of USAA’s Investment Management Company.

(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)

Represents average total interest-earning assets on the company's balance sheet.

(8)

October 2020 averages reflect a full month of Schwab balances and 26 days of TD Ameritrade balances following the acquisition closing on October 6, 2020. Calculating the consolidated daily average from the closing date onwards would result in Average Interest-Earning Assets, Average Margin Balances, and Average Bank Deposit Account Balances of $450,004 million, $52,744 million, and $157,414 million, respectively.

(9)

Represents average TD Ameritrade 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. Additional fund categories can be found at: https://www.aboutschwab.com/financial-reports.

(11)

Represents the principal value of client ETF transactions handled by Schwab, including transactions in proprietary ETFs. Additional fund categories can be found at: https://www.aboutschwab.com/financial-reports. 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/20210614005153/en/

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

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