Schwab Reports Monthly Activity Highlights
The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of May 2023 include:
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Core net new assets brought to the company by new and existing clients totaled $20.7 billion. Net new assets excluding mutual fund clearing totaled $24.5 billion. Total client assets were $7.65 trillion as of month-end May, up 5% from May 2022 and flat compared to April 2023. Client cash as a percentage of assets was 11.5% as of month-end May, compared with 12.0% in May 2022 and 11.3% in April 2023.Commentary from the CFO
Peter Crawford, Managing Director and Chief Financial Officer, provides additional perspective on client cash realignment trends and second quarter revenue expectations: https://www.aboutschwab.com/cfo-commentary.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 34.3 million active brokerage accounts, 2.4 million corporate retirement plan participants, 1.8 million banking accounts, and $7.65 trillion in client assets as of May 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 May 20232022
2023
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®32,990
30,775
32,845
31,510
28,726
32,733
34,590
33,147
34,086
32,657
33,274
34,098
32,908
(3%)
-
Nasdaq Composite®12,081
11,029
12,391
11,816
10,576
10,988
11,468
10,466
11,585
11,456
12,222
12,227
12,935
6%
7%
Standard Poor’s® 5004,132
3,785
4,130
3,955
3,586
3,872
4,080
3,840
4,077
3,970
4,109
4,169
4,180
-
1%
Client Assets (in billions of dollars)
Beginning Client Assets
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
Net New Assets (1)
32.8
19.8
31.5
43.3
39.8
42.0
33.1
53.3
36.1
41.7
72.9
13.6
24.6
81%
(25%)
Net Market (Losses) Gains(15.5
)
(489.0
)
440.8
(220.5
)
(523.2
)
318.4
282.9
(324.1
)
394.7
(142.1
)
126.9
37.9
(5.9
)
Total Client Assets (at month end)
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
7,650.2
-
5%
Core Net New Assets (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
)
20.7
N/M
(37%)
Receiving Ongoing Advisory Services (at month end)
Investor Services
513.0
483.8
514.8
499.2
466.6
487.3
514.0
499.8
524.6
515.5
526.2
530.7
526.3
(1%)
3%
Advisor Services (3)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
3,377.8
(1%)
5%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts (4)
33,822
33,896
33,934
33,984
33,875
33,896
33,636
33,758
33,878
34,010
34,120
34,248
34,311
-
1%
Banking Accounts1,658
1,669
1,680
1,690
1,696
1,706
1,705
1,716
1,729
1,733
1,746
1,757
1,768
1%
7%
Corporate Retirement Plan Participants2,275
2,275
2,267
2,285
2,305
2,322
2,336
2,351
2,369
2,384
2,379
2,391
2,401
-
6%
Client Activity
New Brokerage Accounts (in thousands)
323
305
278
332
287
298
303
330
344
320
378
331
314
(5%)
(3%)
Client Cash as a Percentage of Client Assets (5)12.0
%
12.8
%
12.0
%
12.1
%
12.9
%
12.2
%
11.5
%
12.3
%
11.6
%
11.7
%
11.6
%
11.3
%
11.5
%
20 bp
(50) bp
Derivative Trades as a Percentage of Total Trades22.6
%
22.3
%
24.2
%
23.3
%
23.6
%
24.1
%
24.6
%
23.2
%
23.0
%
23.5
%
22.8
%
23.4
%
23.5
%
10 bp
90 bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (6)
620,157
614,100
605,751
586,154
568,351
552,631
527,019
520,100
512,893
503,122
497,627
493,215
483,438
(2%)
(22%)
Average Margin Balances78,841
74,577
72,177
72,855
73,224
69,188
66,011
64,759
60,211
60,575
60,848
60,338
60,250
-
(24%)
Average Bank Deposit Account Balances (7)154,669
155,306
154,542
148,427
141,198
136,036
130,479
126,953
122,387
115,816
109,392
104,775
103,149
(2%)
(33%)
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (8,9) (in millions of dollars)
Equities
1,889
(1,586
)
5,589
10,465
(2,662
)
3,984
3,777
(1,837
)
7,236
5,850
(3,234
)
1,126
(1,366
)
Hybrid
(1,718
)
(1,054
)
(2,041
)
(783
)
(938
)
(1,380
)
(2,052
)
(1,595
)
(433
)
47
(1,641
)
(462
)
(889
)
Bonds
(6,121
)
(5,631
)
729
(141
)
(5,801
)
(7,218
)
(3,721
)
(3,260
)
5,646
4,281
6,158
2,575
2,029
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (8)
(20,761
)
(16,258
)
(8,674
)
(7,117
)
(15,200
)
(18,473
)
(17,143
)
(21,851
)
552
(2,338
)
(7,423
)
(4,904
)
(7,157
)
Exchange-Traded Funds (9)
14,811
7,987
12,951
16,658
5,799
13,859
15,147
15,159
11,897
12,516
8,706
8,143
6,931
Money Market Funds
7,106
11,544
13,711
19,702
17,018
21,542
16,929
27,778
24,285
23,347
27,106
6,291
15,256
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 Certificates of Deposit (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. April 2023 also includes an inflow of $12.0 billion from a mutual fund clearing services client. 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 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. 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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