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 April 2023 include:

• Total net new assets brought to the company by new and existing clients in April 2023 totaled $13.6 billion, while core net new assets equaled negative $2.3 billion. These flows reflect client cash disbursements during tax season.
• Total client assets were $7.63 trillion as of month-end April, up 5% from April 2022 and up 1% compared to March 2023.
• Active brokerage accounts reached 34.2 million in April, up 1% from April 2022 and flat compared to March 2023.

Commentary from the CFO

Chief Financial Officer Peter Crawford commented, “As previously noted in my commentary published on May 5, 2023, April marked the third consecutive month of deceleration in the daily average pace of cash realignment within bank sweep deposits and Bank Deposit Account (BDA) balances. This trend has continued into May, with the month-to-date pace improving nearly 50% versus April. We remain confident that client cash realignment activity will abate during 2023 – helping client cash on the balance sheet resume growing in proportion with the growth in total client assets over time.”

Forward-Looking Statements

This press release contains forward-looking statements relating to client cash realignment activity; growth of client cash on the balance sheet; and growth in client assets. 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, general market conditions, including the level of interest rates and equity valuations; client cash decisions; client sensitivity to rates; level of client assets, including cash balances; competitive pressures on pricing; capital and liquidity needs and management; balance sheet positioning relative to changes in interest rates; interest earning asset mix and growth; new or changed legislation, regulation or regulatory expectations; and client use of the company’s advisory solutions and other products and services. Other important factors include 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; 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 34.2 million active brokerage accounts, 2.4 million corporate retirement plan participants, 1.8 million banking accounts, and $7.63 trillion in client assets as of April 30, 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 April 2023
				2022																											2023												Change
				Apr			May			Jun			Jul			Aug			Sep			Oct			Nov			Dec			Jan			Feb			Mar			Apr			Mo.		Yr.
Market Indices (at month end)
Dow Jones Industrial Average®				32,977			32,990			30,775			32,845			31,510			28,726			32,733			34,590			33,147			34,086			32,657			33,274			34,098			2%		3%
Nasdaq Composite®				12,335			12,081			11,029			12,391			11,816			10,576			10,988			11,468			10,466			11,585			11,456			12,222			12,227			-		(1%)
Standard & Poor’s® 500				4,132			4,132			3,785			4,130			3,955			3,586			3,872			4,080			3,840			4,077			3,970			4,109			4,169			1%		1%
Client Assets (in billions of dollars)
Beginning Client Assets				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			7,380.2			7,580.0
Net New Assets (1)				(9.2	)		32.8			19.8			31.5			43.3			39.8			42.0			33.1			53.3			36.1			41.7			72.9			13.6			(81%)		N/M
Net Market (Losses) Gains				(568.5	)		(15.5	)		(489.0	)		440.8			(220.5	)		(523.2	)		318.4			282.9			(324.1	)		394.7			(142.1	)		126.9			37.9
Total Client Assets (at month end)				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			7,380.2			7,580.0			7,631.5			1%		5%
Core Net New Assets (2)				(9.2	)		32.8			40.6			31.5			43.3			39.8			42.0			33.1			53.3			36.1			41.7			53.9			(2.3	)		(104%)		75%
Receiving Ongoing Advisory Services (at month end)
Investor Services				509.3			513.0			483.8			514.8			499.2			466.6			487.3			514.0			499.8			524.6			515.5			526.2			530.7			1%		4%
Advisor Services (3)				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			3,289.6			3,369.3			3,394.9			1%		6%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts (4)				33,759			33,822			33,896			33,934			33,984			33,875			33,896			33,636			33,758			33,878			34,010			34,120			34,248			-		1%
Banking Accounts				1,652			1,658			1,669			1,680			1,690			1,696			1,706			1,705			1,716			1,729			1,733			1,746			1,757			1%		6%
Corporate Retirement Plan Participants				2,261			2,275			2,275			2,267			2,285			2,305			2,322			2,336			2,351			2,369			2,384			2,379			2,391			1%		6%
Client Activity
New Brokerage Accounts (in thousands)				386			323			305			278			332			287			298			303			330			344			320			378			331			(12%)		(14%)
Client Cash as a Percentage of Client Assets (5)				11.9%			12.0%			12.8%			12.0%			12.1%			12.9%			12.2%			11.5%			12.3%			11.6%			11.7%			11.6%			11.3%			(30) bp		(60) bp
Derivative Trades as a Percentage of Total Trades				21.9%			22.6%			22.3%			24.2%			23.3%			23.6%			24.1%			24.6%			23.2%			23.0%			23.5%			22.8%			23.4%			60 bp		150 bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (6)				636,668			620,157			614,100			605,751			586,154			568,351			552,631			527,019			520,100			512,893			503,122			497,627			493,215			(1%)		(23%)
Average Margin Balances				83,762			78,841			74,577			72,177			72,855			73,224			69,188			66,011			64,759			60,211			60,575			60,848			60,338			(1%)		(28%)
Average Bank Deposit Account Balances (7)				152,653			154,669			155,306			154,542			148,427			141,198			136,036			130,479			126,953			122,387			115,816			109,392			104,775			(4%)		(31%)
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (8,9) (in millions of dollars)
Equities				(786	)		1,889			(1,586	)		5,589			10,465			(2,662	)		3,984			3,777			(1,837	)		7,236			5,850			(3,234	)		1,126
Hybrid				(529	)		(1,718	)		(1,054	)		(2,041	)		(783	)		(938	)		(1,380	)		(2,052	)		(1,595	)		(433	)		47			(1,641	)		(462	)
Bonds				(6,933	)		(6,121	)		(5,631	)		729			(141	)		(5,801	)		(7,218	)		(3,721	)		(3,260	)		5,646			4,281			6,158			2,575
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (8)				(16,657	)		(20,761	)		(16,258	)		(8,674	)		(7,117	)		(15,200	)		(18,473	)		(17,143	)		(21,851	)		552			(2,338	)		(7,423	)		(4,904	)
Exchange-Traded Funds (9)				8,409			14,811			7,987			12,951			16,658			5,799			13,859			15,147			15,159			11,897			12,516			8,706			8,143
Money Market Funds				(3,430	)		7,106			11,544			13,711			19,702			17,018			21,542			16,929			27,778			24,285			23,347			27,106			6,291

		Note: Certain supplemental details related to the information above can be found at: https://www.aboutschwab.com/financial-reports.
(1)		April 2023 includes an inflow of $12.0 billion from a mutual fund clearing services client and inflows of $3.9 billion from off-platform Schwab Bank Certificates of Deposit (CDs). March 2023 includes inflows of $19.0 billion from off-platform Schwab CDs issued year-to-date through March 31,2023. 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, and activity from off-platform Schwab Bank CDs. 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 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.
		N/M - Not meaningful. Percentage changes greater than 200% are presented as not meaningful.

 

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MEDIA:

Mayura Hooper

Charles Schwab

Phone: 415-667-1525

INVESTORS/ANALYSTS:

Jeff Edwards

Charles Schwab

Phone: 415-667-1524

Source: The Charles Schwab Corporation