Schwab Reports Monthly Activity Highlights

Rhea-AI Summary

The Charles Schwab Corporation reported strong performance in its February 2021 Monthly Activity Report. The company attracted $51.4 billion in net new assets, with a total client asset portfolio reaching $6.90 trillion, marking a 79% year-over-year increase. New brokerage accounts surged to 1.2 million, reflecting a substantial rise of over 200% compared to February 2020. This growth is partially influenced by the acquisition of TD Ameritrade, completed in October 2020.

Positive

• Core net new assets increased by $51.4 billion.
• Total client assets reached $6.90 trillion, up 79% year-over-year.
• New brokerage accounts totaled 1.2 million, up over 200% from February 2020.

Negative

• None.

The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of February 2021 include:

• Core net new assets brought to the company by new and existing clients totaled $51.4 billion. Net new assets excluding mutual fund clearing totaled $50.3 billion.
• Total client assets were $6.90 trillion as of month-end February, up 79% from February 2020 and up 2% compared to January 2021.⁽¹⁾
• New brokerage accounts were 1.2 million in February, up over 200% from February 2020 and up 11% compared to January 2021.⁽¹⁾

(1)

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

Commentary from the CFO

Peter Crawford, Executive Vice President and Chief Financial Officer, provides perspectives on recent trends in client trading activity at: https://www.aboutschwab.com/cfo-commentary.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 31.5 million active brokerage accounts, 2.1 million corporate retirement plan participants, 1.5 million banking accounts, and $6.9 trillion in client assets as of February 28, 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 February 2021
				2020																																	2021						Change
				Feb			Mar			Apr			May			Jun			Jul			Aug			Sep			Oct			Nov			Dec			Jan			Feb			Mo.		Yr.
Market Indices (at month end)
Dow Jones Industrial Average				25,409			21,917			24,346			25,383			25,813			26,428			28,430			27,782			26,502			29,639			30,606			29,983			30,932			3%		22%
Nasdaq Composite				8,567			7,700			8,890			9,490			10,059			10,745			11,775			11,168			10,912			12,199			12,888			13,071			13,192			1%		54%
Standard & Poor’s 500				2,954			2,585			2,912			3,044			3,100			3,271			3,500			3,363			3,270			3,622			3,756			3,714			3,811			3%		29%
Client Assets (in billions of dollars)
Beginning Client Assets				4,051.6			3,862.8			3,496.9			3,778.3			4,009.0			4,110.1			4,278.0			4,489.7			4,395.3			5,878.5			6,421.0			6,691.7			6,759.6
Net New Assets (1)				24.4			27.9			15.3			97.5			24.6			11.2			20.0			20.0			1,596.9			32.1			61.7			34.2			37.0			8%		52%
Net Market (Losses) Gains				(213.2	)		(393.8	)		266.1			133.2			76.5			156.7			191.7			(114.4	)		(113.7	)		510.4			209.0			33.7			103.9
Total Client Assets (at month end)				3,862.8			3,496.9			3,778.3			4,009.0			4,110.1			4,278.0			4,489.7			4,395.3			5,878.5			6,421.0			6,691.7			6,759.6			6,900.5			2%		79%
Core Net New Assets (2)				24.4			27.9			15.3			17.6			13.7			2.7			20.0			20.0			25.6			32.1			61.7			34.2			51.4			50%		111%
Receiving Ongoing Advisory Services (at month end) (3)
Investor Services				323.2			291.5			309.9			339.8			345.2			355.6			366.8			361.2			425.3			457.1			471.8			472.4			481.3			2%		49%
Advisor Services (4)				1,694.0			1,531.3			1,647.9			1,711.7			1,747.5			1,818.5			1,900.5			1,870.1			2,505.5			2,715.7			2,828.3			2,840.6			2,913.3			3%		72%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts				12,521			12,736			12,866			14,007			14,107			14,220			14,311			14,393			29,013			29,202			29,629			30,534			31,523			3%		152%
Banking Accounts				1,411			1,426			1,439			1,448			1,463			1,480			1,493			1,486			1,496			1,504			1,499			1,518			1,542			2%		9%
Corporate Retirement Plan Participants				1,726			1,721			1,696			1,714			1,716			1,712			1,715			1,722			2,072			2,045			2,054			2,069			2,093			1%		21%
Client Activity
New Brokerage Accounts (in thousands) (5)				159			283			201			1,250			201			206			202			184			14,718			430			626			1,095			1,211			11%		N/M
Client Cash as a Percentage of Client Assets (6)				12.0	%		15.1	%		14.3	%		14.0	%		13.6	%		13.0	%		12.5	%		12.8	%		13.4	%		12.4	%		12.3	%		12.2	%		11.8	%		(40) bp		(20) bp
Derivative Trades as a Percentage of Total Trades				11.5	%		7.0	%		10.2	%		12.2	%		10.6	%		13.1	%		13.8	%		14.5	%		20.5	%		19.4	%		18.9	%		17.4	%		16.6	%		(80) bp		510 bp
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (7,8) (in millions of dollars)
Large Capitalization Stock				(178	)		984			(693	)		(768	)		(1,254	)		(2,536	)		(1,422	)		(1,360	)		(935	)		4,454			3,693			(1,604	)		3,143
Small / Mid Capitalization Stock				(531	)		(954	)		151			(401	)		(1,063	)		(1,476	)		(441	)		(497	)		(753	)		2,431			2,293			1,841			1,492
International				132			(2,116	)		(2,207	)		(1,953	)		(1,580	)		(773	)		230			370			168			2,110			4,112			4,330			4,439
Specialized				397			333			2,059			1,512			1,020			1,505			906			115			215			1,985			3,777			3,667			5,172
Hybrid				(257	)		(4,790	)		(860	)		(518	)		(97	)		(769	)		(124	)		(12	)		(553	)		(402	)		359			407			832
Taxable Bond				3,830			(23,142	)		1,642			5,469			9,215			7,314			7,680			5,734			5,904			4,825			10,004			10,922			8,418
Tax-Free Bond				1,066			(5,229	)		(242	)		805			1,710			1,297			1,648			1,123			861			1,131			2,165			2,679			916
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (7)				(565	)		(34,382	)		(3,863	)		(564	)		1,768			(147	)		2,568			757			(2,260	)		2,832			6,336			5,713			6,273
Exchange-Traded Funds (8)				5,024			(532	)		3,713			4,710			6,183			4,709			5,909			4,716			7,167			13,702			20,067			16,529			18,139
Money Market Funds				1,312			(1,233	)		8,465			4,833			(5,673	)		(9,039	)		(5,614	)		(6,627	)		(4,021	)		(5,908	)		(7,332	)		(5,248	)		(4,405	)
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (9,10)				278,966			317,850			353,018			361,814			373,986			379,521			384,690			392,784			442,119			466,677			482,394			517,306			514,885			-		85%
Average Bank Deposit Account Balances (10,11)				-			-			-			-			-			-			-			-			132,030			162,315			163,463			167,980			167,433			-		N/M

(1)		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. July 2020 includes an inflow of $8.5 billion related to the acquisition of Wasmer, Schroeder & Company, LLC. June 2020 includes an inflow of $10.9 billion from a mutual fund clearing services client. May 2020 includes an inflow of $79.9 billion related to the acquisition of the assets of USAA’s Investment Management Company.
(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. May 2020 includes 1.1 million new brokerage accounts related to the acquisition of the assets of USAA’s Investment Management Company.
(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 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.
(9)		Represents average total interest-earning assets on the company's balance sheet.
(10)		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 and Average Bank Deposit Account Balances of $450,004 million and $157,414 million, respectively.
(11)		Represents average TD Ameritrade clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions.
		N/M - Not meaningful

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210312005097/en/

FAQ

What was the total client assets reported by Charles Schwab in February 2021?

Charles Schwab reported total client assets of $6.90 trillion as of February 2021.

How much net new assets did Charles Schwab bring in February 2021?

In February 2021, Charles Schwab attracted $51.4 billion in net new assets.

How many new brokerage accounts did Charles Schwab open in February 2021?

Charles Schwab opened 1.2 million new brokerage accounts in February 2021.

What is the year-over-year increase in client assets for Charles Schwab?

Client assets for Charles Schwab increased by 79% year-over-year as of February 2021.

How did the TD Ameritrade acquisition affect Charles Schwab's February 2021 results?

The TD Ameritrade acquisition, completed in October 2020, influenced year-over-year comparisons for client assets and new accounts.