Schwab Reports Monthly Activity Highlights

Rhea-AI Summary

Charles Schwab (SCHW) has released its January 2025 Monthly Activity Report, showcasing significant growth across key metrics. Core net new assets reached $30.6 billion, marking a 75% year-over-year increase. Total client assets hit $10.33 trillion, up 21% from January 2024 and 2% from December 2024.

The company saw 433,000 new brokerage accounts opened, an 18% increase from January 2024. Daily average trades rose 7% month-over-month to 7.37 million. However, transactional sweep cash decreased by $19 billion to $399.6 billion, attributed to typical seasonal patterns as clients reinvest year-end cash. Bank supplemental funding balances reduced by $3.7 billion, ending at $46.2 billion.

Positive

• Core net new assets increased 75% YoY to $30.6 billion
• Total client assets grew 21% YoY to $10.33 trillion
• New brokerage accounts up 18% YoY to 433,000
• Daily average trades increased 7% MoM to 7.37 million

Negative

• Transactional sweep cash declined by $19 billion MoM to $399.6 billion
• Bank supplemental funding balances decreased by $3.7 billion

Insights

Financial Services Analyst

The January 2025 metrics reveal Schwab's exceptional execution in asset gathering and client acquisition, with several standout performance indicators that strengthen its competitive moat in the financial services sector. The core net new assets of $30.6 billion represents an extraordinary 75% year-over-year growth, significantly outpacing industry averages and indicating strong market share gains.

The expansion to $10.33 trillion in total client assets is particularly noteworthy as it demonstrates Schwab's growing dominance in wealth management and its ability to attract and retain high-net-worth clients. This 21% year-over-year increase suggests successful integration of TD Ameritrade clients and effective cross-selling of services.

The operational metrics paint a picture of healthy client engagement. The addition of 433,000 new brokerage accounts shows strong organic growth, while the 7% increase in daily average trades to 7.37 million indicates robust trading activity that should boost transaction-based revenues.

The reduction in transactional sweep cash to $399.6 billion and bank supplemental funding to $46.2 billion demonstrates prudent balance sheet management. This seasonal cash redeployment pattern typically benefits Schwab through increased asset-based fees as clients move funds into investment products. The decrease in supplemental funding suggests improved cost efficiency and stronger organic deposit growth.

WESTLAKE, Texas--(BUSINESS WIRE)-- The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of January 2025 include:

• Core net new assets brought to the company by new and existing clients totaled $30.6 billion – a year-over-year increase of more than 75%.
• Total client assets equaled $10.33 trillion as of month-end January, up 21% from January 2024 and up 2% compared to December 2024.
• New brokerage accounts opened during the month totaled 433,000, an increase of 18% versus January 2024.
• Driven by sustained market engagement, January daily average trades increased by 7% month-over-month to 7.37 million.
• Transactional sweep cash declined by $19 billion month-over-month to end January at $399.6 billion. This reflects typical seasonality to begin a new year, as clients historically redeploy most of their prior year-end cash build-up back into the market.
• Bank supplemental funding balances were reduced by another $3.7 billion to finish January at $46.2 billion outstanding.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 36.7 million active brokerage accounts, 5.5 million workplace plan participant accounts, 2.0 million banking accounts, and $10.33 trillion in client assets as of January 31, 2025. 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 subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its 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.

The Charles Schwab Corporation Monthly Activity Report For January 2025
	2024																																				2025			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®	38,150			38,996			39,807			37,816			38,686			39,119			40,843			41,563			42,330			41,763			44,911			42,544			44,545			5%	17%
Nasdaq Composite®	15,164			16,092			16,379			15,658			16,735			17,733			17,599			17,714			18,189			18,095			19,218			19,311			19,627			2%	29%
Standard & Poor’s® 500	4,846			5,096			5,254			5,036			5,278			5,460			5,522			5,648			5,762			5,705			6,032			5,882			6,041			3%	25%
Client Assets (in billions of dollars)
Beginning Client Assets	8,516.6			8,558.1			8,879.5			9,118.4			8,847.5			9,206.3			9,407.5			9,572.1			9,737.7			9,920.5			9,852.0			10,305.4			10,101.3
Net New Assets (1)	14.8			31.7			41.7			10.0			31.0			33.2			29.0			31.5			30.3			22.7			25.5			60.2			30.5			(49%)	106%
Net Market Gains (Losses)	26.7			289.7			197.2			(280.9	)		327.8			168.0			135.6			134.1			152.5			(91.2	)		427.9			(264.3	)		201.3
Total Client Assets (at month end)	8,558.1			8,879.5			9,118.4			8,847.5			9,206.3			9,407.5			9,572.1			9,737.7			9,920.5			9,852.0			10,305.4			10,101.3			10,333.1			2%	21%
Core Net New Assets (1,2)	17.2			33.4			45.0			1.0			31.1			29.1			29.0			32.8			33.5			24.6			28.8			61.4			30.6			(50%)	78%
Receiving Ongoing Advisory Services (at month end)
Investor Services	584.1			601.8			618.5			602.2			624.0			632.9			649.1			663.7			675.1			665.6			688.9			682.0			698.7			2%	20%
Advisor Services	3,780.4			3,902.5			4,009.5			3,893.9			4,027.3			4,090.0			4,185.4			4,268.1			4,343.8			4,303.3			4,489.2			4,379.7			4,496.6			3%	19%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts	35,017			35,127			35,301			35,426			35,524			35,612			35,743			35,859			35,982			36,073			36,222			36,456			36,709			1%	5%
Banking Accounts	1,856			1,871			1,885			1,901			1,916			1,931			1,937			1,940			1,954			1,967			1,980			1,998			2,019			1%	9%
Workplace Plan Participant Accounts (3)	5,226			5,268			5,277			5,282			5,345			5,363			5,382			5,373			5,388			5,407			5,393			5,399			5,450			1%	4%
Client Activity
New Brokerage Accounts (in thousands)	366			345			383			361			314			310			327			324			321			331			357			431			433			-	18%
Client Cash as a Percentage of Client Assets (4)	10.5	%		10.2	%		10.0	%		10.2	%		9.9	%		9.7	%		9.6	%		9.5	%		9.5	%		9.8	%		9.5	%		10.1	%		9.8	%		(30) bp	(70) bp
Derivative Trades as a Percentage of Total Trades	21.8	%		22.2	%		21.9	%		22.1	%		21.9	%		21.3	%		21.2	%		20.8	%		21.5	%		21.4	%		19.7	%		18.6	%		19.3	%		70 bp	(250) bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (5)	443,694			434,822			431,456			423,532			415,950			417,150			417,379			420,191			420,203			422,327			425,789			431,177			431,523			-	(3%)
Average Margin Balances	61,368			63,600			66,425			68,827			67,614			69,730			73,206			73,326			72,755			74,105			76,932			81,507			82,551			1%	35%
Average Bank Deposit Account Balances (6)	95,553			92,075			90,774			88,819			86,844			85,195			83,979			82,806			82,336			83,261			84,385			85,384			84,790			(1%)	(11%)
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (7,8) (in millions of dollars)
Equities	8,182			7,624			10,379			3,472			5,734			3,379			10,908			5,609			5,217			7,176			13,226			14,805			10,050
Hybrid	(501	)		(1,330	)		(439	)		(703	)		(558	)		(843	)		(1,155	)		(1,377	)		(432	)		(1,397	)		(329	)		124			(1,324	)
Bonds	7,510			9,883			7,561			5,949			5,854			6,346			8,651			10,919			11,015			10,442			7,473			10,969			8,747
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (7)	(966	)		(1,348	)		(1,607	)		(4,818	)		(5,544	)		(4,254	)		(4,679	)		(4,003	)		(1,261	)		(4,905	)		(4,492	)		(4,331	)		(6,785	)
Exchange-Traded Funds (8)	16,157			17,525			19,108			13,536			16,574			13,136			23,083			19,154			17,061			21,126			24,862			30,229			24,258
Money Market Funds	11,717			10,129			9,085			(2,357	)		9,790			3,858			9,110			8,048			9,672			11,032			9,172			8,956			11,584

		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 CDs. 2024 also includes an inflow of $10.3 billion from a mutual fund clearing services client in April and outflows from a large international relationship of $0.1 billion in August, $0.3 billion in October, and $0.6 billion in November.
(2)		Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $25 billion beginning in 2025; $10 billion in prior periods) relating to a specific client, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods.
(3)		Includes accounts in Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services; Participants may be enrolled in services in more than one Workplace business.
(4)		Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets; client cash excludes brokered CDs issued by Charles Schwab Bank.
(5)		Represents average total interest-earning assets on the Company's balance sheet.
(6)		Represents average clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions.
(7)		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.
(8)		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/20250214514509/en/

MEDIA:

Mayura Hooper

Charles Schwab

Phone: 415-667-1525

INVESTORS/ANALYSTS:

Jeff Edwards

Charles Schwab

Phone: 817-854-6177

Source: The Charles Schwab Corporation

FAQ

What was Schwab's (SCHW) core net new asset growth in January 2025?

Schwab's core net new assets grew by 75% year-over-year to $30.6 billion in January 2025.

How much did Schwab's (SCHW) total client assets increase in January 2025?

Total client assets reached $10.33 trillion, up 21% from January 2024 and 2% from December 2024.

What was the change in SCHW's daily average trades for January 2025?

Daily average trades increased by 7% month-over-month to 7.37 million in January 2025.

How many new brokerage accounts did Schwab (SCHW) open in January 2025?

Schwab opened 433,000 new brokerage accounts in January 2025, an 18% increase compared to January 2024.

Why did Schwab's (SCHW) transactional sweep cash decline in January 2025?

The decline was due to typical seasonality at the start of a new year, as clients typically reinvest their year-end cash build-up back into the market.