Schwab Reports Monthly Activity Highlights
The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of April 2023 include:
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Total net new assets brought to the company by new and existing clients in April 2023 totaled $13.6 billion, while core net new assets equaled negative $2.3 billion. These flows reflect client cash disbursements during tax season. Total client assets were $7.63 trillion as of month-end April, up 5% from April 2022 and up 1% compared to March 2023. Active brokerage accounts reached 34.2 million in April, up 1% from April 2022 and flat compared to March 2023.Commentary from the CFO
Chief Financial Officer Peter Crawford commented, “As previously noted in my commentary published on May 5, 2023, April marked the third consecutive month of deceleration in the daily average pace of cash realignment within bank sweep deposits and Bank Deposit Account (BDA) balances. This trend has continued into May, with the month-to-date pace improving nearly 50% versus April. We remain confident that client cash realignment activity will abate during 2023 – helping client cash on the balance sheet resume growing in proportion with the growth in total client assets over time.”
Forward-Looking Statements
This press release contains forward-looking statements relating to client cash realignment activity; growth of client cash on the balance sheet; and growth in client assets. These forward-looking statements reflect management’s expectations as of the date hereof. Achievement of these expectations and objectives is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations.
Important factors that may cause such differences include, but are not limited to, general market conditions, including the level of interest rates and equity valuations; client cash decisions; client sensitivity to rates; level of client assets, including cash balances; competitive pressures on pricing; capital and liquidity needs and management; balance sheet positioning relative to changes in interest rates; interest earning asset mix and growth; new or changed legislation, regulation or regulatory expectations; and client use of the company’s advisory solutions and other products and services. Other important factors include the company’s ability to attract and retain clients and independent investment advisors and grow those relationships and client assets; develop and launch new and enhanced products, services, and capabilities, as well as enhance its infrastructure and capacity, in a timely and successful manner; hire and retain talent; support client activity levels; and other factors set forth in the company’s most recent reports on Form 10-K and Form 10-Q.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 34.2 million active brokerage accounts, 2.4 million corporate retirement plan participants, 1.8 million banking accounts, and $7.63 trillion in client assets as of April 30, 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 April 20232022
2023
Change Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Mo. Yr. Market Indices (at month end) Dow Jones Industrial Average®32,977
32,990
30,775
32,845
31,510
28,726
32,733
34,590
33,147
34,086
32,657
33,274
34,098
2%
3%
Nasdaq Composite®12,335
12,081
11,029
12,391
11,816
10,576
10,988
11,468
10,466
11,585
11,456
12,222
12,227
-
(1%)
Standard Poor’s® 5004,132
4,132
3,785
4,130
3,955
3,586
3,872
4,080
3,840
4,077
3,970
4,109
4,169
1%
1%
Client Assets (in billions of dollars)
Beginning Client Assets
7,862.1
7,284.4
7,301.7
6,832.5
7,304.8
7,127.6
6,644.2
7,004.6
7,320.6
7,049.8
7,480.6
7,380.2
7,580.0
Net New Assets (1)
(9.2
)
32.8
19.8
31.5
43.3
39.8
42.0
33.1
53.3
36.1
41.7
72.9
13.6
(81%)
N/M
Net Market (Losses) Gains(568.5
)
(15.5
)
(489.0
)
440.8
(220.5
)
(523.2
)
318.4
282.9
(324.1
)
394.7
(142.1
)
126.9
37.9
Total Client Assets (at month end)
7,284.4
7,301.7
6,832.5
7,304.8
7,127.6
6,644.2
7,004.6
7,320.6
7,049.8
7,480.6
7,380.2
7,580.0
7,631.5
1%
5%
Core Net New Assets (2)(9.2
)
32.8
40.6
31.5
43.3
39.8
42.0
33.1
53.3
36.1
41.7
53.9
(2.3
)
(104%)
75%
Receiving Ongoing Advisory Services (at month end)
Investor Services
509.3
513.0
483.8
514.8
499.2
466.6
487.3
514.0
499.8
524.6
515.5
526.2
530.7
1%
4%
Advisor Services (3)3,190.5
3,213.8
3,040.4
3,222.5
3,150.5
2,950.9
3,106.0
3,270.5
3,173.4
3,345.4
3,289.6
3,369.3
3,394.9
1%
6%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts (4)
33,759
33,822
33,896
33,934
33,984
33,875
33,896
33,636
33,758
33,878
34,010
34,120
34,248
-
1%
Banking Accounts1,652
1,658
1,669
1,680
1,690
1,696
1,706
1,705
1,716
1,729
1,733
1,746
1,757
1%
6%
Corporate Retirement Plan Participants2,261
2,275
2,275
2,267
2,285
2,305
2,322
2,336
2,351
2,369
2,384
2,379
2,391
1%
6%
Client Activity
New Brokerage Accounts (in thousands)
386
323
305
278
332
287
298
303
330
344
320
378
331
(12%)
(14%)
Client Cash as a Percentage of Client Assets (5)11.9%
12.0%
12.8%
12.0%
12.1%
12.9%
12.2%
11.5%
12.3%
11.6%
11.7%
11.6%
11.3%
(30) bp
(60) bp
Derivative Trades as a Percentage of Total Trades21.9%
22.6%
22.3%
24.2%
23.3%
23.6%
24.1%
24.6%
23.2%
23.0%
23.5%
22.8%
23.4%
60 bp
150 bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (6)
636,668
620,157
614,100
605,751
586,154
568,351
552,631
527,019
520,100
512,893
503,122
497,627
493,215
(1%)
(23%)
Average Margin Balances83,762
78,841
74,577
72,177
72,855
73,224
69,188
66,011
64,759
60,211
60,575
60,848
60,338
(1%)
(28%)
Average Bank Deposit Account Balances (7)152,653
154,669
155,306
154,542
148,427
141,198
136,036
130,479
126,953
122,387
115,816
109,392
104,775
(4%)
(31%)
Mutual Fund and Exchange-Traded Fund Net Buys (Sells) (8,9) (in millions of dollars) Equities(786
)
1,889
(1,586
)
5,589
10,465
(2,662
)
3,984
3,777
(1,837
)
7,236
5,850
(3,234
)
1,126
Hybrid
(529
)
(1,718
)
(1,054
)
(2,041
)
(783
)
(938
)
(1,380
)
(2,052
)
(1,595
)
(433
)
47
(1,641
)
(462
)
Bonds(6,933
)
(6,121
)
(5,631
)
729
(141
)
(5,801
)
(7,218
)
(3,721
)
(3,260
)
5,646
4,281
6,158
2,575
Net Buy (Sell) Activity (in millions of dollars) Mutual Funds (8)
(16,657
)
(20,761
)
(16,258
)
(8,674
)
(7,117
)
(15,200
)
(18,473
)
(17,143
)
(21,851
)
552
(2,338
)
(7,423
)
(4,904
)
Exchange-Traded Funds (9)8,409
14,811
7,987
12,951
16,658
5,799
13,859
15,147
15,159
11,897
12,516
8,706
8,143
Money Market Funds
(3,430
)
7,106
11,544
13,711
19,702
17,018
21,542
16,929
27,778
24,285
23,347
27,106
6,291
Note: Certain supplemental details related to the information above can be found at: https://www.aboutschwab.com/financial-reports.
(1)
April 2023 includes an inflow of $12.0 billion from a mutual fund clearing services client and inflows of $3.9 billion from off-platform Schwab Bank Certificates of Deposit (CDs). March 2023 includes inflows of $19.0 billion from off-platform Schwab CDs issued year-to-date through March 31,2023. June 2022 includes an outflow of $20.8 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 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. September 2022 includes the company-initiated closure of approximately 152 thousand low-balance accounts.(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.(6)
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.(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.
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