The Charles Schwab Corporation - SCHW STOCK NEWS

The Charles Schwab Corporation has published its Monthly Activity Report for January 2021. Key metrics include an increase in client assets to $6.8 trillion, a rise in daily average trades by 12% compared to the previous month, and net new assets totaling $50 billion. The report highlights strong client engagement and operational performance, reinforcing Schwab's competitive position in the market. This growth is attributed to favorable market conditions and enhanced service offerings.

The Charles Schwab Corporation clarified its recent trading activities in response to media attention on a group of securities facing a "short-squeeze." The firm confirmed it did not halt or restrict buying or selling of any stocks. However, it adjusted margin requirements for select stocks to ensure clients could cover their purchases. Specifically, margin requirements for GameStop (GME) were set to 100%, prohibiting its use as collateral for margin loans. These measures align with Schwab's risk management practices and aim to balance trading freedom with risk mitigation.

The Charles Schwab Corporation's Board of Directors declared a quarterly cash dividend of $0.18 per common share, payable on February 26, 2021, to stockholders of record by February 12, 2021. Additionally, the Board announced dividends on various series of Fixed Rate Non-Cumulative Perpetual Preferred Stock, including $15.00 for Series C, $14.88 for Series D, $2,312.50 for Series E, $1,343.75 for Series G, and $888.89 for Series H, all payable on March 1, 2021.

The Charles Schwab Corporation reported net income of $1.1 billion for Q4 2020, a 33% increase from Q4 2019. Total net income for the year decreased to $3.3 billion from $3.7 billion in 2019. Net revenues surged by 60% to $4.176 billion in Q4, while annual revenues rose 9% to $11.691 billion. The company recorded $281.9 billion in core net new assets, with total client assets reaching a record $6.69 trillion. Key acquisitions in 2020, including TD Ameritrade, were highlighted as pivotal for growth.

Charles Schwab has launched two new variable annuities, the Schwab Genesis Variable Annuity™ and the Schwab Genesis Advisory Variable Annuity™, in collaboration with Protective Life Insurance Company. These products feature base annuity fees that are 40% to 75% lower than the industry average. The annuities provide flexible investment options with 63 managed portfolios, including a Schwab S&P 500 Index Portfolio with annual expenses of just 0.03%. Both products lack surrender charges and offer additional benefits for guaranteed income and death protection.

Charles Schwab Investment Management is expanding its fixed income strategies for clients of Charles Schwab & Co. with 20 Wasmer Schroeder strategies, including bond ladders and actively managed accounts. This move aims to meet the increasing demand for flexible income-generating investments. Rick Wurster, Head of Schwab Asset Management Solutions, emphasized the strategies' focus on strong, risk-adjusted performance. The Wasmer Schroeder strategies consist of six actively managed strategies, two ultra-short fixed income strategies, and 12 bond ladders, enhancing client investment choices.

The Charles Schwab Corporation announced its Monthly Activity Report for November 2020, revealing key financial metrics. Core net new assets reached $32.1 billion, with $31.5 billion excluding mutual fund clearing. Total client assets increased to $6.42 trillion, a 63% rise from November 2019 and a 9% increase from October 2020. New brokerage accounts numbered 430 thousand, representing a 200% increase year-over-year but a 97% decrease month-over-month, influenced by the TD Ameritrade acquisition closing on October 6, 2020.

The Charles Schwab Corporation has announced a semi-annual dividend of $35 per share on its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A. This dividend will be payable on February 1, 2021, to stockholders recorded by the close of business on January 15, 2021. As of October 31, 2020, the company reported 29.0 million active brokerage accounts and $5.9 trillion in client assets.