Schwab Reports Monthly Activity Highlights
The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of May 2024 include:
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Core net new assets brought to the company by new and existing clients totaled $31.1 billion – representing our second highest May ever. Total client assets were $9.21 trillion as of month-end May, up 20% from May 2023 and up 4% compared to April 2024. New brokerage accounts were 314,000 in May, flat year-over-year and down 13% compared to April 2024. Consistent with the commentary at the Institutional Investor Day on May 22, the company currently expects second quarter total revenue to decrease by 1%–2% relative to the prior quarter and an adjusted(1) pre-tax profit margin of approximately 40%. These results reflect the anticipated impact of tax season on transactional sweep cash as well as expected trading volumes during the period.(1)
Adjusted pre-tax profit margin is calculated as total net revenues less adjusted total expenses, which exclude acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs, as a percentage of total net revenues. Pre-tax quarterly non-GAAP adjustments are estimated to range between approximately $150 to $200 million during 2024.
Forward-Looking Statements
This press release contains forward-looking statements relating to second quarter transactional sweep cash, trading volumes, revenue, adjusted pre-tax profit margin and non-GAAP adjustments. 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 are described in the company’s most recent reports on Form 10-K and Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company’s website (https://www.aboutschwab.com/financial-reports) and on the Securities and Exchange Commission’s website (https://www.sec.gov). The company makes no commitment to update any forward-looking statements.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 35.5 million active brokerage accounts, 5.3 million workplace plan participant accounts, 1.9 million banking accounts, and $9.21 trillion in client assets as of May 31, 2024. 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 its 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.
The Charles Schwab Corporation Monthly Activity Report For May 20242023
2024
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®
32,908
34,408
35,560
34,722
33,508
33,053
35,951
37,690
38,150
38,996
39,807
37,816
38,686
2%
18%
Nasdaq Composite®12,935
13,788
14,346
14,035
13,219
12,851
14,226
15,011
15,164
16,092
16,379
15,658
16,735
7%
29%
Standard Poor’s® 5004,180
4,450
4,589
4,508
4,288
4,194
4,568
4,770
4,846
5,096
5,254
5,036
5,278
5%
26%
Client Assets (in billions of dollars)
Beginning Client Assets
7,631.5
7,650.2
8,015.8
8,241.0
8,094.7
7,824.5
7,653.4
8,180.6
8,516.6
8,558.1
8,879.5
9,118.4
8,847.5
Net New Assets (1)
24.6
33.8
12.9
8.1
27.2
5.0
19.2
42.1
14.8
31.7
41.7
10.0
31.0
N/M
26%
Net Market (Losses) Gains(5.9
)
331.8
212.3
(154.4
)
(297.4
)
(176.1
)
508.0
293.9
26.7
289.7
197.2
(280.9
)
327.8
Total Client Assets (at month end)
7,650.2
8,015.8
8,241.0
8,094.7
7,824.5
7,653.4
8,180.6
8,516.6
8,558.1
8,879.5
9,118.4
8,847.5
9,206.3
4%
20%
Core Net New Assets (1,2)20.7
33.8
13.7
4.9
27.1
11.3
21.7
43.1
17.2
33.4
45.0
1.0
31.1
N/M
50%
Receiving Ongoing Advisory Services (at month end)
Investor Services
526.3
547.5
560.6
552.2
533.0
522.2
557.0
581.4
584.1
601.8
618.5
602.2
624.0
4%
19%
Advisor Services (3)3,377.8
3,527.8
3,619.8
3,554.2
3,448.0
3,380.3
3,604.4
3,757.4
3,780.4
3,902.5
4,009.5
3,893.9
4,027.3
3%
19%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts
34,311
34,382
34,434
34,440
34,540
34,571
34,672
34,838
35,017
35,127
35,301
35,426
35,524
-
4%
Banking Accounts1,768
1,781
1,792
1,798
1,799
1,812
1,825
1,838
1,856
1,871
1,885
1,901
1,916
1%
8%
Workplace Plan Participant Accounts (4)4,962
5,003
5,030
5,037
5,141
5,212
5,212
5,221
5,226
5,268
5,277
5,282
5,345
1%
8%
Client Activity
New Brokerage Accounts (in thousands)
314
315
303
311
280
284
286
340
366
345
383
361
314
(13%)
-
Client Cash as a Percentage of Client Assets (5,6)10.9
%
10.5
%
10.2
%
10.4
%
10.8
%
11.2
%
10.7
%
10.5
%
10.5
%
10.2
%
10.0
%
10.2
%
9.9
%
(30) bp
(100) bp
Derivative Trades as a Percentage of Total Trades23.5
%
23.9
%
23.0
%
24.4
%
24.2
%
23.2
%
23.1
%
21.8
%
21.8
%
22.2
%
21.9
%
22.1
%
21.9
%
(20) bp
(160) bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (7)
483,438
479,752
466,659
449,483
444,864
438,522
439,118
446,305
443,694
434,822
431,456
423,532
415,950
(2%)
(14%)
Average Margin Balances60,250
61,543
63,040
64,226
64,014
63,946
61,502
62,309
61,368
63,600
66,425
68,827
67,614
(2%)
12%
Average Bank Deposit Account Balances (8)103,149
102,917
102,566
101,928
100,404
97,893
94,991
95,518
95,553
92,075
90,774
88,819
86,844
(2%)
(16%)
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (9,10) (in millions of dollars)
Equities
(1,366
)
9,190
7,423
(278
)
675
(3,039
)
6,099
7,903
8,182
7,624
10,379
3,472
5,734
Hybrid
(889
)
(903
)
(407
)
(1,037
)
(828
)
(1,457
)
(1,466
)
(1,596
)
(501
)
(1,330
)
(439
)
(703
)
(558
)
Bonds
2,029
3,302
2,515
4,696
2,723
1,094
255
6,104
7,510
9,883
7,561
5,949
5,854
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (9)
(7,157
)
(4,485
)
(3,333
)
(6,476
)
(5,853
)
(12,245
)
(9,267
)
(7,406
)
(966
)
(1,348
)
(1,607
)
(4,818
)
(5,544
)
Exchange-Traded Funds (10)
6,931
16,074
12,864
9,857
8,423
8,843
14,155
19,817
16,157
17,525
19,108
13,536
16,574
Money Market Funds
15,256
9,112
7,911
16,869
13,388
16,976
11,670
7,745
11,717
10,129
9,085
(2,357
)
9,790
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. Additionally, 2024 includes an inflow of $10.3 billion from a mutual fund clearing services client in April, and 2023 includes outflows from a large international relationship of $0.8 billion in September, $6.2 billion in October, $5.4 billion in November, and $0.6 billion in December.(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)
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.(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)
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.(7)
Represents average total interest-earning assets on the Company's balance sheet.(8)
Represents average clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions.(9)
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.(10)
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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