Schwab Reports Monthly Activity Highlights

Rhea-AI Summary

The Charles Schwab Corporation's Monthly Activity Report for October 2022 highlights a core net new asset influx of $42.0 billion from clients. Excluding mutual fund clearing, net new assets were $33.9 billion. Total client assets stood at $7.00 trillion, reflecting a 12% decrease year-over-year but a 5% increase month-over-month. Average interest-earning assets were $552.6 billion, down 4% year-over-year and 3% from September 2022, aligning with full-year expectations.

Positive

• Core net new assets increased by $42.0 billion.
• Net new assets excluding mutual fund clearing reached $33.9 billion.
• Monthly client assets rose by 5% compared to September 2022.

Negative

• Total client assets fell by 12% from October 2021.
• Average interest-earning assets decreased by 4% year-over-year.

WESTLAKE, Texas--(BUSINESS WIRE)-- The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of October 2022 include:

• Core net new assets brought to the company by new and existing clients totaled $42.0 billion. Net new assets excluding mutual fund clearing totaled $33.9 billion.
• Total client assets were $7.00 trillion as of month-end October, down 12% from October 2021 and up 5% compared to September 2022.
• Average interest-earning assets were $552.6 billion in October, down 4% from October 2021 and down 3% compared to September 2022 – consistent with our full-year expectations outlined at the 2022 Fall Business Update.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 33.9 million active brokerage accounts, 2.3 million corporate retirement plan participants, 1.7 million banking accounts, and $7.00 trillion in client assets as of October 31, 2022. 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 October 2022
		2021									2022																														Change
		Oct			Nov			Dec			Jan			Feb			Mar			Apr			May			Jun			Jul			Aug			Sep			Oct			Mo.			Yr.
Market Indices (at month end)
Dow Jones Industrial Average®		35,820			34,484			36,338			35,132			33,893			34,678			32,977			32,990			30,775			32,845			31,510			28,726			32,733			14	%		(9	%)
Nasdaq Composite®		15,498			15,538			15,645			14,240			13,751			14,221			12,335			12,081			11,029			12,391			11,816			10,576			10,988			4	%		(29	%)
Standard & Poor’s® 500		4,605			4,567			4,766			4,516			4,374			4,530			4,132			4,132			3,785			4,130			3,955			3,586			3,872			8	%		(16	%)
Client Assets (in billions of dollars)
Beginning Client Assets		7,614.0			7,982.3			7,918.3			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
Net New Assets (1)		22.9			31.4			80.3			33.6			40.6			46.3			(9.2	)		32.8			19.8			31.5			43.3			39.8			42.0			6	%		83	%
Net Market Gains (Losses)		345.4			(95.4	)		139.4			(367.8	)		(157.8	)		129.2			(568.5	)		(15.5	)		(489.0	)		440.8			(220.5	)		(523.2	)		318.4
Total Client Assets (at month end)		7,982.3			7,918.3			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			5	%		(12	%)
Core Net New Assets (2)		36.8			45.1			80.3			33.6			40.6			46.3			(9.2	)		32.8			40.6			31.5			43.3			39.8			42.0			6	%		14	%
Receiving Ongoing Advisory Services (at month end)
Investor Services		548.3			543.1			559.2			541.9			533.7			538.9			509.3			513.0			483.8			514.8			499.2			466.6			487.3			4	%		(11	%)
Advisor Services (3)		3,399.8			3,374.3			3,505.2			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			5	%		(9	%)
Client Accounts (at month end, in thousands)
Active Brokerage Accounts (4)		32,796			32,942			33,165			33,308			33,421			33,577			33,759			33,822			33,896			33,934			33,984			33,875			33,896			-			3	%
Banking Accounts		1,593			1,608			1,614			1,628			1,641			1,641			1,652			1,658			1,669			1,680			1,690			1,696			1,706			1	%		7	%
Corporate Retirement Plan Participants		2,213			2,198			2,200			2,216			2,235			2,246			2,261			2,275			2,275			2,267			2,285			2,305			2,322			1	%		5	%
Client Activity
New Brokerage Accounts (in thousands)		397			448			473			426			356			420			386			323			305			278			332			287			298			4	%		(25	%)
Client Cash as a Percentage of Client Assets (5)		10.4	%		10.5	%		10.9	%		11.3	%		11.5	%		11.4	%		11.9	%		12.0	%		12.8	%		12.0	%		12.1	%		12.9	%		12.2	%		(70) bp			180 bp
Derivative Trades as a Percentage of Total Trades		22.5	%		23.4	%		23.0	%		22.4	%		24.0	%		22.4	%		21.9	%		22.6	%		22.3	%		24.2	%		23.3	%		23.6	%		24.1	%		50 bp			160 bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (6)		574,181			584,362			605,709			622,997			629,042			644,768			636,668			620,157			614,100			605,751			586,154			568,351			552,631			(3	%)		(4	%)
Average Margin Balances		83,835			87,311			88,328			86,737			84,354			81,526			83,762			78,841			74,577			72,177			72,855			73,224			69,188			(6	%)		(17	%)
Average Bank Deposit Account Balances (7)		154,040			153,877			154,918			157,706			153,824			155,657			152,653			154,669			155,306			154,542			148,427			141,198			136,036			(4	%)		(12	%)
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (8,9) (in millions of dollars)
Equities		8,840			13,099			11,519			7,384			9,371			14,177			(786	)		1,889			(1,586	)		5,589			10,465			(2,662	)		3,984
Hybrid		81			308			(1,207	)		(367	)		(478	)		(497	)		(529	)		(1,718	)		(1,054	)		(2,041	)		(783	)		(938	)		(1,380	)
Bonds		4,425			4,097			5,600			1,804			(1,973	)		(7,851	)		(6,933	)		(6,121	)		(5,631	)		729			(141	)		(5,801	)		(7,218	)
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (8)		302			189			(2,859	)		(4,961	)		(6,318	)		(11,888	)		(16,657	)		(20,761	)		(16,258	)		(8,674	)		(7,117	)		(15,200	)		(18,473	)
Exchange-Traded Funds (9)		13,044			17,315			18,771			13,782			13,238			17,717			8,409			14,811			7,987			12,951			16,658			5,799			13,859
Money Market Funds		(451	)		(1,725	)		(144	)		(1,984	)		(1,086	)		(1,344	)		(3,430	)		7,106			11,544			13,711			19,702			17,018			21,542

		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. November 2021 includes an outflow of $13.7 billion from a mutual fund clearing services client. October 2021 includes an outflow of $13.9 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)		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.
(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.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221114005276/en/

MEDIA:

Mayura Hooper

Charles Schwab

Phone: 415-667-1525

INVESTORS/ANALYSTS:

Jeff Edwards

Charles Schwab

Phone: 415-667-1524

Source: The Charles Schwab Corporation

FAQ

What were the core net new assets for Charles Schwab in October 2022?

The core net new assets totaled $42.0 billion.

How did total client assets change for Schwab in October 2022?

Total client assets were $7.00 trillion, down 12% from October 2021.

What was the trend in average interest-earning assets for Schwab in October 2022?

Average interest-earning assets were $552.6 billion, down 4% from the previous year.

Did Schwab experience any month-over-month growth in client assets?

Yes, total client assets increased by 5% compared to September 2022.

What is the significance of net new assets excluding mutual fund clearing for Schwab?

Net new assets excluding mutual fund clearing reached $33.9 billion in October 2022.