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 November 2022 include:

• Core net new assets brought to the company by new and existing clients totaled $33.1 billion. Net new assets excluding mutual fund clearing totaled $35.0 billion.
• Total client assets were $7.32 trillion as of month-end November, down 8% from November 2021 and up 5% compared to October 2022.
• Client cash as a percentage of assets was 11.5% as of month-end November, compared with 10.5% in November 2021 and 12.2% in October 2022.

Commentary from the CFO

Peter Crawford, Managing Director and Chief Financial Officer, provides perspectives on recent account activity, the reclassification of certain investment securities, and client cash sorting trends at: https://www.aboutschwab.com/cfo-commentary.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 33.6 million active brokerage accounts, 2.3 million corporate retirement plan participants, 1.7 million banking accounts, and $7.32 trillion in client assets as of November 30, 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 November 2022
			2021						2022																																	Change
			Nov			Dec			Jan			Feb			Mar			Apr			May			Jun			Jul			Aug			Sep			Oct			Nov			Mo.		Yr.
Market Indices (at month end)
Dow Jones Industrial Average®			34,484			36,338			35,132			33,893			34,678			32,977			32,990			30,775			32,845			31,510			28,726			32,733			34,590			6	%	-
Nasdaq Composite®			15,538			15,645			14,240			13,751			14,221			12,335			12,081			11,029			12,391			11,816			10,576			10,988			11,468			4	%	(26	%)
Standard & Poor’s® 500			4,567			4,766			4,516			4,374			4,530			4,132			4,132			3,785			4,130			3,955			3,586			3,872			4,080			5	%	(11	%)
Client Assets (in billions of dollars)
Beginning Client Assets			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
Net New Assets (1)			31.4			80.3			33.6			40.6			46.3			(9.2	)		32.8			19.8			31.5			43.3			39.8			42.0			33.1			(21	%)	5	%
Net Market (Losses) Gains			(95.4	)		139.4			(367.8	)		(157.8	)		129.2			(568.5	)		(15.5	)		(489.0	)		440.8			(220.5	)		(523.2	)		318.4			282.9
Total Client Assets (at month end)			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			7,320.6			5	%	(8	%)
Core Net New Assets (2)			45.1			80.3			33.6			40.6			46.3			(9.2	)		32.8			40.6			31.5			43.3			39.8			42.0			33.1			(21	%)	(27	%)
Receiving Ongoing Advisory Services (at month end)
Investor Services			543.1			559.2			541.9			533.7			538.9			509.3			513.0			483.8			514.8			499.2			466.6			487.3			514.0			5	%	(5	%)
Advisor Services (3)			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			3,270.5			5	%	(3	%)
Client Accounts (at month end, in thousands)
Active Brokerage Accounts (4)			32,942			33,165			33,308			33,421			33,577			33,759			33,822			33,896			33,934			33,984			33,875			33,896			33,636			(1	%)	2	%
Banking Accounts			1,608			1,614			1,628			1,641			1,641			1,652			1,658			1,669			1,680			1,690			1,696			1,706			1,705			-		6	%
Corporate Retirement Plan Participants			2,198			2,200			2,216			2,235			2,246			2,261			2,275			2,275			2,267			2,285			2,305			2,322			2,336			1	%	6	%
Client Activity
New Brokerage Accounts (in thousands)			448			473			426			356			420			386			323			305			278			332			287			298			303			2	%	(32	%)
Client Cash as a Percentage of Client Assets (5)			10.5	%		10.9	%		11.3	%		11.5	%		11.4	%		11.9	%		12.0	%		12.8	%		12.0	%		12.1	%		12.9	%		12.2	%		11.5	%		(70) bp		100 bp
Derivative Trades as a Percentage of Total Trades			23.4	%		23.0	%		22.4	%		24.0	%		22.4	%		21.9	%		22.6	%		22.3	%		24.2	%		23.3	%		23.6	%		24.1	%		24.6	%		50 bp		120 bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (6)			584,362			605,709			622,997			629,042			644,768			636,668			620,157			614,100			605,751			586,154			568,351			552,631			527,019			(5	%)	(10	%)
Average Margin Balances			87,311			88,328			86,737			84,354			81,526			83,762			78,841			74,577			72,177			72,855			73,224			69,188			66,011			(5	%)	(24	%)
Average Bank Deposit Account Balances (7)			153,877			154,918			157,706			153,824			155,657			152,653			154,669			155,306			154,542			148,427			141,198			136,036			130,479			(4	%)	(15	%)
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (8,9) (in millions of dollars)
Equities			13,099			11,519			7,384			9,371			14,177			(786	)		1,889			(1,586	)		5,589			10,465			(2,662	)		3,984			3,777
Hybrid			308			(1,207	)		(367	)		(478	)		(497	)		(529	)		(1,718	)		(1,054	)		(2,041	)		(783	)		(938	)		(1,380	)		(2,052	)
Bonds			4,097			5,600			1,804			(1,973	)		(7,851	)		(6,933	)		(6,121	)		(5,631	)		729			(141	)		(5,801	)		(7,218	)		(3,721	)
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (8)			189			(2,859	)		(4,961	)		(6,318	)		(11,888	)		(16,657	)		(20,761	)		(16,258	)		(8,674	)		(7,117	)		(15,200	)		(18,473	)		(17,143	)
Exchange-Traded Funds (9)			17,315			18,771			13,782			13,238			17,717			8,409			14,811			7,987			12,951			16,658			5,799			13,859			15,147
Money Market Funds			(1,725	)		(144	)		(1,984	)		(1,086	)		(1,344	)		(3,430	)		7,106			11,544			13,711			19,702			17,018			21,542			16,929

		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.
(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)		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 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.

 

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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