Schwab Reports Monthly Activity Highlights

WESTLAKE, Texas--(BUSINESS WIRE)-- The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of October 2021 include:

• Core net new assets brought to the company by new and existing clients totaled $36.8 billion. Net new assets excluding mutual fund clearing totaled $35.9 billion.
• Total client assets were $7.98 trillion as of month-end October, up 36% from October 2020 and up 5% compared to September 2021.
• Average margin balances were $83.8 billion in October, up 74% from October 2020 and up 3% compared to September 2021.⁽¹⁾

(1)

Year-over-year comparisons are affected by the close of the TD Ameritrade acquisition on October 6, 2020

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 32.8 million active brokerage accounts, 2.2 million corporate retirement plan participants, 1.6 million banking accounts, and $7.98 trillion in client assets as of October 31, 2021. 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 2021
				2020									2021																														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				26,502			29,639			30,606			29,983			30,932			32,982			33,875			34,529			34,503			34,935			35,361			33,844			35,820			6%		35%
Nasdaq Composite				10,912			12,199			12,888			13,071			13,192			13,247			13,963			13,749			14,504			14,673			15,259			14,449			15,498			7%		42%
Standard & Poor’s® 500				3,270			3,622			3,756			3,714			3,811			3,973			4,181			4,204			4,298			4,395			4,523			4,308			4,605			7%		41%
Client Assets (in billions of dollars)
Beginning Client Assets				4,395.3			5,878.5			6,421.0			6,691.7			6,759.6			6,900.5			7,069.1			7,336.1			7,395.7			7,574.8			7,642.7			7,838.2			7,614.0
Net New Assets (1)				1,596.9			32.1			61.7			34.2			37.0			62.6			37.2			28.1			43.5			44.3			51.8			42.9			22.9			(47%)		(99%)
Net Market (Losses) Gains				(113.7	)		510.4			209.0			33.7			103.9			106.0			229.8			31.5			135.6			23.6			143.7			(267.1	)		345.4
Total Client Assets (at month end)				5,878.5			6,421.0			6,691.7			6,759.6			6,900.5			7,069.1			7,336.1			7,395.7			7,574.8			7,642.7			7,838.2			7,614.0			7,982.3			5%		36%
Core Net New Assets (2)				25.6			32.1			61.7			34.2			51.4			62.6			37.2			28.1			43.5			44.3			51.8			42.9			36.8			(14%)		44%
Receiving Ongoing Advisory Services (at month end) (3)
Investor Services				425.3			457.1			471.8			472.4			481.3			495.2			511.1			517.8			525.1			531.9			542.5			530.1			548.3			3%		29%
Advisor Services (4)				2,505.5			2,715.7			2,828.3			2,840.6			2,913.3			2,997.9			3,112.5			3,150.4			3,209.3			3,256.5			3,333.4			3,253.2			3,399.8			5%		36%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts				29,013			29,202			29,629			30,534			31,523			31,902			31,877			32,110			32,265			32,386			32,513			32,675			32,796			-		13%
Banking Accounts				1,496			1,504			1,499			1,518			1,542			1,608			1,562			1,584			1,574			1,578			1,594			1,580			1,593			1%		6%
Corporate Retirement Plan Participants				2,072			2,045			2,054			2,069			2,093			2,105			2,116			2,130			2,149			2,159			2,188			2,207			2,213			-		7%
Client Activity
New Brokerage Accounts (in thousands) (5)				14,718			430			626			1,095			1,211			847			609			549			499			402			402			374			397			6%		(97%)
Client Cash as a Percentage of Client Assets (6)				13.4%			12.4%			12.3%			12.2%			11.8%			11.5%			10.9%			10.8%			10.5%			10.4%			10.3%			10.8%			10.4%			(40) bp		(300) bp
Derivative Trades as a Percentage of Total Trades				20.5%			19.4%			18.9%			17.4%			16.6%			18.5%			20.4%			20.9%			20.6%			22.2%			23.1%			23.1%			22.5%			(60) bp		200 bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (7,8)				442,119			466,677			482,394			517,306			514,885			520,074			527,194			528,642			536,146			546,579			552,372			565,379			574,181			2%		30%
Average Margin Balances (8)				48,095			53,916			59,142			62,999			69,064			71,266			72,863			75,921			78,410			79,910			81,021			81,705			83,835			3%		74%
Average Bank Deposit Account Balances (8,9)				132,030			162,315			163,463			167,980			167,433			164,866			162,392			160,459			161,377			151,275			150,896			152,330			154,040			1%		17%
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (10,11) (in millions of dollars)
Equities				(1,305	)		10,980			13,875			8,234			14,246			16,301			13,422			9,854			10,873			7,418			8,808			7,596			8,840
Hybrid				(553	)		(402	)		359			407			832			1,133			877			1			390			666			569			335			81
Bonds				6,765			5,956			12,169			13,601			9,334			8,237			8,940			5,906			10,101			6,917			8,044			6,232			4,425
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (10)				(2,260	)		2,832			6,336			5,713			6,273			6,190			5,754			2,022			5,872			2,644			3,876			(308	)		302
Exchange-Traded Funds (11)				7,167			13,702			20,067			16,529			18,139			19,481			17,485			13,739			15,492			12,357			13,545			14,471			13,044
Money Market Funds				(4,021	)		(5,908	)		(7,332	)		(5,248	)		(4,405	)		(4,528	)		(5,153	)		(3,988	)		(3,806	)		(2,501	)		(1,372	)		(1,512	)		(451	)

		Note: Certain supplemental details related to the information above can be found at: https://www.aboutschwab.com/financial-reports.
(1)		October 2021 includes an outflow of $13.9 billion from a mutual fund clearing services client. February 2021 includes an outflow of $14.4 billion from a mutual fund clearing services client. October 2020 includes an inflow of $1.6 trillion related to the acquisition of TD Ameritrade.
(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)		Beginning in December 2020, AdvisorDirect® assets are presented as Investor Services. In December 2020, $46.5 billion and $50.4 billion for October and November, respectively, were reclassed from Advisor Services to Investor Services.
(4)		Excludes Retirement Business Services.
(5)		October 2020 includes 14.5 million new brokerage accounts related to the acquisition of TD Ameritrade.
(6)		Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets.
(7)		Represents average total interest-earning assets on the company's balance sheet.
(8)		October 2020 averages reflect a full month of Schwab balances and 26 days of TD Ameritrade balances following the acquisition closing on October 6, 2020. Calculating the consolidated daily average from the closing date onwards would result in Average Interest-Earning Assets, Average Margin Balances, and Average Bank Deposit Account Balances of $450,004 million, $52,744 million, and $157,414 million, respectively.
(9)		Represents average TD Ameritrade clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions.
(10)		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.
(11)		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/20211112005359/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 Schwab's core net new assets in October 2021?

Schwab's core net new assets in October 2021 totaled $36.8 billion.

How much did Schwab's total client assets grow in October 2021?

Total client assets reached $7.98 trillion, reflecting a 36% increase from October 2020.

What was the average margin balance for Schwab in October 2021?

The average margin balance for Schwab in October 2021 was $83.8 billion, up 74% from October 2020.

How do Schwab's new assets compare to the previous month?

Net new assets excluding mutual fund clearing totaled $35.9 billion, a notable increase from September 2021.