Shares of the large broker Charles Schwab (NYSE: SCHW) traded as much as 3.2% higher after the company reported a business update this morning, indicating that third-quarter results are trending as expected. The company also showed good net new asset growth.

Schwab reported net new asset growth of $32.8 billion in August, $4.9 billion more than in August of 2023. August also included expected attrition ahead of a client conversion weekend in September, the biggest transition weekend of five held throughout the year.

Transactional sweep cash (client funds yet to be invested) fell several billion from $371.8 billion in July to $366.8 billion in August, a significant improvement over August 2023 and 2022. Schwab has struggled in the high-interest-rate environment as clients have moved their sweep cash into higher-yielding financial instruments. Bank deposits had fallen roughly 17.5% year over year as of June.

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Source Fool.com