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Schwab Reports Monthly Activity Highlights

The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of January 2023 include:

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230214005340/en/

  • Core net new assets brought to the company by new and existing clients totaled $36.1 billion. Net new assets excluding mutual fund clearing totaled $34.8 billion.
  • Total client assets were $7.48 trillion as of month-end January, down 4% from January 2022 and up 6% compared to December 2022.
  • Client cash as a percentage of assets was 11.6% as of month-end January, compared with 11.3% in January 2022 and 12.3% in December 2022.

Commentary from the CFO

CFO Peter Crawford commented, “Our strong business momentum carried over into the new year as we gathered a record $36.1 billion in core net new assets during January, an annualized growth rate of 6%. Investor engagement and sentiment improved from year-end levels as equity markets rebounded – with the S&P 500® index notching its best start in four years. Given the strong performance of the markets during the month, in conjunction with normal seasonal patterns, clients increased allocations to equity and fixed income securities to start the year. Over the remainder of 2023, Schwab’s diversified financial model keeps us well-positioned to convert our continued success with clients into earnings growth and meaningful capital return.”

Forward-Looking Statements

This press release contains forward-looking statements relating to Schwab’s business momentum and client success; positioning; earnings growth; and returning capital to stockholders. 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, 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; successfully implement integration strategies and plans; monetize client assets; and manage expenses. Other important factors include client use of the company’s advisory solutions and other products and services; general market conditions, including equity valuations and the level of interest rates; the level and mix of client trading activity; market volatility; margin loan balances; securities lending; competitive pressures on pricing; client cash sorting; client sensitivity to rates; level of client assets, including cash balances; capital and liquidity needs and management; balance sheet positioning relative to changes in interest rates; interest earning asset mix and growth; the migration of bank deposit account balances; 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 33.9 million active brokerage accounts, 2.4 million corporate retirement plan participants, 1.7 million banking accounts, and $7.48 trillion in client assets as of January 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 January 2023

 

 

2022

 

2023

 

Change

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

Mo.

Yr.

Market Indices (at month end)

 

 

Dow Jones Industrial Average®

35,132

 

33,893

 

34,678

 

32,977

 

32,990

 

30,775

 

32,845

 

31,510

 

28,726

 

32,733

 

34,590

 

33,147

 

34,086

 

3%

(3%)

Nasdaq Composite®

14,240

 

13,751

 

14,221

 

12,335

 

12,081

 

11,029

 

12,391

 

11,816

 

10,576

 

10,988

 

11,468

 

10,466

 

11,585

 

11%

(19%)

Standard & Poor’s® 500

4,516

 

4,374

 

4,530

 

4,132

 

4,132

 

3,785

 

4,130

 

3,955

 

3,586

 

3,872

 

4,080

 

3,840

 

4,077

 

6%

(10%)

Client Assets (in billions of dollars)

 

 

Beginning Client Assets

8,138.0

 

7,803.8

 

7,686.6

 

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

 

 

 

Net New Assets (1)

33.6

 

40.6

 

46.3

 

(9.2

)

32.8

 

19.8

 

31.5

 

43.3

 

39.8

 

42.0

 

33.1

 

53.3

 

36.1

 

(32%)

7%

Net Market (Losses) Gains

(367.8

)

(157.8

)

129.2

 

(568.5

)

(15.5

)

(489.0

)

440.8

 

(220.5

)

(523.2

)

318.4

 

282.9

 

(324.1

)

394.7

 

 

 

Total Client Assets (at month end)

7,803.8

 

7,686.6

 

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

 

6%

(4%)

Core Net New Assets (2)

33.6

 

40.6

 

46.3

 

(9.2

)

32.8

 

40.6

 

31.5

 

43.3

 

39.8

 

42.0

 

33.1

 

53.3

 

36.1

 

(32%)

7%

Receiving Ongoing Advisory Services (at month end)

 

 

Investor Services

541.9

 

533.7

 

538.9

 

509.3

 

513.0

 

483.8

 

514.8

 

499.2

 

466.6

 

487.3

 

514.0

 

499.8

 

524.6

 

5%

(3%)

Advisor Services (3)

3,382.4

 

3,342.5

 

3,404.6

 

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

 

5%

(1%)

Client Accounts (at month end, in thousands)

 

 

Active Brokerage Accounts (4)

33,308

 

33,421

 

33,577

 

33,759

 

33,822

 

33,896

 

33,934

 

33,984

 

33,875

 

33,896

 

33,636

 

33,758

 

33,878

 

-

2%

Banking Accounts

1,628

 

1,641

 

1,641

 

1,652

 

1,658

 

1,669

 

1,680

 

1,690

 

1,696

 

1,706

 

1,705

 

1,716

 

1,729

 

1%

6%

Corporate Retirement Plan Participants

2,216

 

2,235

 

2,246

 

2,261

 

2,275

 

2,275

 

2,267

 

2,285

 

2,305

 

2,322

 

2,336

 

2,351

 

2,369

 

1%

7%

Client Activity

 

 

New Brokerage Accounts (in thousands)

426

 

356

 

420

 

386

 

323

 

305

 

278

 

332

 

287

 

298

 

303

 

330

 

344

 

4%

(19%)

Client Cash as a Percentage of Client Assets (5)

11.3

%

11.5

%

11.4

%

11.9

%

12.0

%

12.8

%

12.0

%

12.1

%

12.9

%

12.2

%

11.5

%

12.3

%

11.6

%

(70) bp

30 bp

Derivative Trades as a Percentage of Total Trades

22.4

%

24.0

%

22.4

%

21.9

%

22.6

%

22.3

%

24.2

%

23.3

%

23.6

%

24.1

%

24.6

%

23.2

%

23.0

%

(20) bp

60 bp

Selected Average Balances (in millions of dollars)

 

 

Average Interest-Earning Assets (6)

622,997

 

629,042

 

644,768

 

636,668

 

620,157

 

614,100

 

605,751

 

586,154

 

568,351

 

552,631

 

527,019

 

520,100

 

512,893

 

(1%)

(18%)

Average Margin Balances

86,737

 

84,354

 

81,526

 

83,762

 

78,841

 

74,577

 

72,177

 

72,855

 

73,224

 

69,188

 

66,011

 

64,759

 

60,211

 

(7%)

(31%)

Average Bank Deposit Account Balances (7)

157,706

 

153,824

 

155,657

 

152,653

 

154,669

 

155,306

 

154,542

 

148,427

 

141,198

 

136,036

 

130,479

 

126,953

 

122,387

 

(4%)

(22%)

Mutual Fund and Exchange-Traded Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Buys (Sells) (8,9) (in millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities

7,384

 

9,371

 

14,177

 

(786

)

1,889

 

(1,586

)

5,589

 

10,465

 

(2,662

)

3,984

 

3,777

 

(1,837

)

7,236

 

 

 

Hybrid

(367

)

(478

)

(497

)

(529

)

(1,718

)

(1,054

)

(2,041

)

(783

)

(938

)

(1,380

)

(2,052

)

(1,595

)

(433

)

 

 

Bonds

1,804

 

(1,973

)

(7,851

)

(6,933

)

(6,121

)

(5,631

)

729

 

(141

)

(5,801

)

(7,218

)

(3,721

)

(3,260

)

5,646

 

 

 

Net Buy (Sell) Activity (in millions of dollars)

 

 

 

 

 

 

Mutual Funds (8)

(4,961

)

(6,318

)

(11,888

)

(16,657

)

(20,761

)

(16,258

)

(8,674

)

(7,117

)

(15,200

)

(18,473

)

(17,143

)

(21,851

)

552

 

 

 

Exchange-Traded Funds (9)

13,782

 

13,238

 

17,717

 

8,409

 

14,811

 

7,987

 

12,951

 

16,658

 

5,799

 

13,859

 

15,147

 

15,159

 

11,897

 

 

 

Money Market Funds

(1,984

)

(1,086

)

(1,344

)

(3,430

)

7,106

 

11,544

 

13,711

 

19,702

 

17,018

 

21,542

 

16,929

 

27,778

 

24,285

 

 

 

Note: Certain supplemental details related to the information above can be found at: https://www.aboutschwab.com/financial-reports.

(1)

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. 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 TD Ameritrade 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.

 

Contacts

MEDIA:

Mayura Hooper

Charles Schwab

Phone: 415-667-1525

INVESTORS/ANALYSTS:

Jeff Edwards

Charles Schwab

Phone: 415-667-1524

 

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