Schwab Reports Monthly Activity Highlights
Charles Schwab 's August 2024 Monthly Activity Report highlights significant growth and positive trends. Core net new assets increased to $32.8 billion, up from $4.9 billion in August 2023. Total client assets reached $9.74 trillion, a 20% increase year-over-year. New brokerage accounts grew by 4% compared to August 2023, totaling 324,000.
Despite typical August seasonality, transactional sweep cash declined modestly to $366.8 billion, showing improvement over previous years. The company anticipates third-quarter results to align with July's Business Update, projecting 2-3% revenue growth and an adjusted pre-tax profit margin of at least 40%. These results reflect healthy investor engagement and slowing rate-related client cash realignment activity.
Il Rapporto Mensile sulle Attività di agosto 2024 di Charles Schwab evidenzia una significativa crescita e tendenze positive. Le nuove attività nette core sono aumentate a 32,8 miliardi di dollari, rispetto ai 4,9 miliardi di agosto 2023. Il totale delle attività dei clienti ha raggiunto 9,74 trilioni di dollari, con un incremento del 20% rispetto all'anno scorso. Gli nuovi conti di intermediazione sono cresciuti del 4% rispetto ad agosto 2023, totalizzando 324.000.
Nonostante la tipica stagionalità di agosto, il denaro in transazione è diminuito leggermente a 366,8 miliardi di dollari, mostrando un miglioramento rispetto agli anni precedenti. L'azienda prevede che i risultati del terzo trimestre si allineeranno con l'aggiornamento commerciale di luglio, proiettando una crescita dei ricavi del 2-3% e un margine di profitto netto rettificato di almeno il 40%. Questi risultati riflettono un sano coinvolgimento degli investitori e un rallentamento nelle attività di riallineamento della liquidità dei clienti legate ai tassi.
El Informe Mensual de Actividad de agosto de 2024 de Charles Schwab destaca un crecimiento significativo y tendencias positivas. Los nuevos activos netos centrales aumentaron a 32,8 mil millones de dólares, en comparación con 4,9 mil millones en agosto de 2023. Los activos totales de los clientes alcanzaron 9,74 billones de dólares, un aumento del 20% en comparación con el año anterior. Las nuevas cuentas de corretaje crecieron un 4% en comparación con agosto de 2023, alcanzando un total de 324.000.
A pesar de la estacionalidad típica de agosto, el efectivo de barrido transaccional disminuyó modestamente a 366,8 mil millones de dólares, mostrando una mejora en comparación con años anteriores. La empresa anticipa que los resultados del tercer trimestre se alinearán con la Actualización Empresarial de julio, proyectando un crecimiento de ingresos del 2-3% y un margen de beneficio antes de impuestos ajustado de al menos el 40%. Estos resultados reflejan un saludable compromiso de los inversores y una desaceleración en la actividad de reequilibrio de efectivo de los clientes relacionada con las tasas.
찰스 슈왑의 2024년 8월 월간 활동 보고서는 중요한 성장과 긍정적인 추세를 강조합니다. 핵심 순 신규 자산은 328억 달러로 증가하여 2023년 8월의 49억 달러에서 상승했습니다. 총 고객 자산은 9.74조 달러에 달해, 전년 대비 20% 증가했습니다. 신규 중개 계좌는 2023년 8월과 비교하여 4% 증가하여 총 324,000개에 이르렀습니다.
전형적인 8월 시즌성을 고려했음에도 불구하고, 거래용 스위프 현금은 3668억 달러로 소폭 하락하였으며, 이전 몇 년보다 개선된 모습입니다. 회사는 3분기 실적이 7월 비즈니스 업데이트와 일치할 것으로 예상하며, 2-3%의 수익 성장과 최소 40%의 조정된 세전 이익률을 전망하고 있습니다. 이러한 결과는 건전한 투자자 참여와 느려지는 고객 현금 재조정 활동을 반영합니다.
Le Rapport Mensuel d'Activité d'août 2024 de Charles Schwab met en évidence une croissance significative et des tendances positives. Les actifs nets nouveaux core ont augmenté à 32,8 milliards de dollars, contre 4,9 milliards en août 2023. Le total des actifs des clients a atteint 9,74 billions de dollars, soit une augmentation de 20 % par rapport à l'année précédente. Les nouveaux comptes de courtage ont augmenté de 4 % par rapport à août 2023, totalisant 324.000.
Malgré la saisonnalité typique d'août, la trésorerie de traitement transactionnel a légèrement diminué à 366,8 milliards de dollars, montrant une amélioration par rapport aux années précédentes. L'entreprise prévoit que les résultats du troisième trimestre seront en ligne avec la mise à jour commerciale de juillet, projetant une croissance des revenus de 2-3 % et une marge bénéficiaire avant impôt ajustée d'au moins 40 %. Ces résultats reflètent un engagement sain des investisseurs et un ralentissement des activités de réajustement des liquidités des clients liées aux taux.
Der Monatsbericht von Charles Schwab für August 2024 hebt ein signifikantes Wachstum und positive Trends hervor. Die neuen Nettoanlagen stiegen auf 32,8 Milliarden Dollar, verglichen mit 4,9 Milliarden Dollar im August 2023. Die Gesamtkundenvermögen erreichten 9,74 Billionen Dollar, was einem Anstieg von 20 % im Jahresvergleich entspricht. Die neuen Brokerage-Konten wuchsen um 4 % im Vergleich zu August 2023, insgesamt 324.000.
Trotz der typischen Saisonalität im August sank der transaktionale Sweep Bargeld leicht auf 366,8 Milliarden Dollar, was eine Verbesserung gegenüber den Vorjahren zeigt. Das Unternehmen erwartet, dass die Ergebnisse des dritten Quartals mit dem Geschäftsupdate vom Juli übereinstimmen und prognostiziert ein Umsatzwachstum von 2-3 % sowie eine bereinigte Gewinnmarge vor Steuern von mindestens 40 %. Diese Ergebnisse spiegeln ein gesundes Engagement der Anleger und eine Verlangsamung der mit Zinssätzen verbundenen Umstrukturierungsaktivitäten bei Kundenbargeld wider.
- Core net new assets increased to $32.8 billion, up from $4.9 billion in August 2023
- Total client assets reached $9.74 trillion, a 20% increase year-over-year
- New brokerage accounts grew by 4% compared to August 2023, totaling 324,000
- Anticipated third-quarter revenue growth of 2-3% compared to the previous quarter
- Expected adjusted pre-tax profit margin of at least 40% for the third quarter
- Improvement in transactional sweep cash decline compared to previous years
- Modest decline in transactional sweep cash compared to the previous month
Insights
Schwab's August report showcases robust growth in key metrics. The $32.8 billion in core net new assets marks a significant increase from the previous year, indicating strong client trust and market position. The
The anticipated
Schwab's performance reflects broader market trends and investor behavior. The substantial increase in core net new assets suggests a shift in investor sentiment, possibly driven by economic factors or competitive advantages. The
The improvement in transactional sweep cash trends compared to previous years is noteworthy, potentially signaling a stabilization in interest rate expectations. This could have positive implications for Schwab's net interest revenue. The anticipated reduction in supplemental funding at the bank is a positive development, potentially improving the company's cost structure. Investors should watch for any shifts in these trends as they may impact Schwab's competitive position in the brokerage industry.
-
Core net new assets brought to the company by new and existing clients increased to
$32.8 billion $4.9 billion -
Total client assets equaled
$9.74 trillion 20% from August 2023 and up2% compared to July 2024. -
New brokerage accounts totaled 324 thousand in August, an increase of
4% versus August 2023. -
Driven by typical August seasonality observed during the current interest rate cycle, transactional sweep cash declined modestly versus the prior month to
$366.8 billion 70% and85% relative to August 2023 and August 2022, respectively. - As of mid-September, quarter-to-date net changes in transactional sweep cash are trending favorable to the first half of 2024, enabling a reduction in the amount of outstanding supplemental funding at the bank relative to the prior quarter-end level.
-
The company currently anticipates its third quarter results to finish in-line with the scenario outlined during the July Business Update. Total revenue is expected to grow by
2% -3% versus the prior quarter, with an adjusted(1) pre-tax profit margin of at least40% . These anticipated quarterly results reflect healthy investor engagement across Schwab’s modern wealth platform and the continued slowing of rate-related client cash realignment activity.
(1) |
Adjusted pre-tax profit margin is calculated as total net revenues less adjusted total expenses, which exclude acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs, as a percentage of total net revenues. Pre-tax quarterly non-GAAP adjustments are estimated to range between approximately |
|||
Forward-Looking Statements
This press release contains forward-looking statements relating to third quarter sweep cash, supplemental funding balances, client engagement, revenue, pre-tax profit margin and non-GAAP adjustments.
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 are described in the company’s most recent reports on Form 10-K and Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company’s website (https://www.aboutschwab.com/financial-reports) and on the Securities and Exchange Commission’s website (https://www.sec.gov). The company makes no commitment to update any forward-looking statements.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 35.9 million active brokerage accounts, 5.4 million workplace plan participant accounts, 1.9 million banking accounts, and
| The Charles Schwab Corporation Monthly Activity Report For August 2024 | |||||||||||||||||||||||||||||||||||||||||||
2023 |
2024 |
Change | |||||||||||||||||||||||||||||||||||||||||
| Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Mo. | Yr. | |||||||||||||||||||||||||||||
| Market Indices (at month end) | |||||||||||||||||||||||||||||||||||||||||||
| Dow Jones Industrial Average® | 34,722 |
|
33,508 |
|
33,053 |
|
35,951 |
|
37,690 |
|
38,150 |
|
38,996 |
|
39,807 |
|
37,816 |
|
38,686 |
|
39,119 |
|
40,843 |
|
41,563 |
|
|
|
|||||||||||||||
| Nasdaq Composite® | 14,035 |
|
13,219 |
|
12,851 |
|
14,226 |
|
15,011 |
|
15,164 |
|
16,092 |
|
16,379 |
|
15,658 |
|
16,735 |
|
17,733 |
|
17,599 |
|
17,714 |
|
|
|
|||||||||||||||
| Standard & Poor’s® 500 | 4,508 |
|
4,288 |
|
4,194 |
|
4,568 |
|
4,770 |
|
4,846 |
|
5,096 |
|
5,254 |
|
5,036 |
|
5,278 |
|
5,460 |
|
5,522 |
|
5,648 |
|
|
|
|||||||||||||||
| Client Assets (in billions of dollars) |
|
|
|||||||||||||||||||||||||||||||||||||||||
| Beginning Client Assets | 8,241.0 |
|
8,094.7 |
|
7,824.5 |
|
7,653.4 |
|
8,180.6 |
|
8,516.6 |
|
8,558.1 |
|
8,879.5 |
|
9,118.4 |
|
8,847.5 |
|
9,206.3 |
|
9,407.5 |
|
9,572.1 |
|
|
|
|||||||||||||||
| Net New Assets (1) | 8.1 |
|
27.2 |
|
5.0 |
|
19.2 |
|
42.1 |
|
14.8 |
|
31.7 |
|
41.7 |
|
10.0 |
|
31.0 |
|
33.2 |
|
29.0 |
|
31.5 |
|
|
N/M |
|||||||||||||||
| Net Market (Losses) Gains | (154.4 |
) |
(297.4 |
) |
(176.1 |
) |
508.0 |
|
293.9 |
|
26.7 |
|
289.7 |
|
197.2 |
|
(280.9 |
) |
327.8 |
|
168.0 |
|
135.6 |
|
134.1 |
|
|
|
|||||||||||||||
| Total Client Assets (at month end) | 8,094.7 |
|
7,824.5 |
|
7,653.4 |
|
8,180.6 |
|
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 |
|
|
|
|||||||||||||||
| Core Net New Assets (1,2) | 4.9 |
|
27.1 |
|
11.3 |
|
21.7 |
|
43.1 |
|
17.2 |
|
33.4 |
|
45.0 |
|
1.0 |
|
31.1 |
|
29.1 |
|
29.0 |
|
32.8 |
|
|
N/M |
|||||||||||||||
| Receiving Ongoing Advisory Services (at month end) |
|
|
|||||||||||||||||||||||||||||||||||||||||
| Investor Services | 552.2 |
|
533.0 |
|
522.2 |
|
557.0 |
|
581.4 |
|
584.1 |
|
601.8 |
|
618.5 |
|
602.2 |
|
624.0 |
|
632.9 |
|
649.1 |
|
663.7 |
|
|
|
|||||||||||||||
| Advisor Services (3) | 3,554.2 |
|
3,448.0 |
|
3,380.3 |
|
3,604.4 |
|
3,757.4 |
|
3,780.4 |
|
3,902.5 |
|
4,009.5 |
|
3,893.9 |
|
4,027.3 |
|
4,090.0 |
|
4,185.4 |
|
4,268.1 |
|
|
|
|||||||||||||||
| Client Accounts (at month end, in thousands) |
|
|
|||||||||||||||||||||||||||||||||||||||||
| Active Brokerage Accounts | 34,440 |
|
34,540 |
|
34,571 |
|
34,672 |
|
34,838 |
|
35,017 |
|
35,127 |
|
35,301 |
|
35,426 |
|
35,524 |
|
35,612 |
|
35,743 |
|
35,859 |
|
- |
|
|||||||||||||||
| Banking Accounts | 1,798 |
|
1,799 |
|
1,812 |
|
1,825 |
|
1,838 |
|
1,856 |
|
1,871 |
|
1,885 |
|
1,901 |
|
1,916 |
|
1,931 |
|
1,937 |
|
1,940 |
|
- |
|
|||||||||||||||
| Workplace Plan Participant Accounts (4) | 5,037 |
|
5,141 |
|
5,212 |
|
5,212 |
|
5,221 |
|
5,226 |
|
5,268 |
|
5,277 |
|
5,282 |
|
5,345 |
|
5,363 |
|
5,382 |
|
5,373 |
|
- |
|
|||||||||||||||
| Client Activity |
|
|
|||||||||||||||||||||||||||||||||||||||||
| New Brokerage Accounts (in thousands) | 311 |
|
280 |
|
284 |
|
286 |
|
340 |
|
366 |
|
345 |
|
383 |
|
361 |
|
314 |
|
310 |
|
327 |
|
324 |
|
( |
|
|||||||||||||||
| Client Cash as a Percentage of Client Assets (5) | 10.4 |
% |
10.8 |
% |
11.2 |
% |
10.7 |
% |
10.5 |
% |
10.5 |
% |
10.2 |
% |
10.0 |
% |
10.2 |
% |
9.9 |
% |
9.7 |
% |
9.6 |
% |
9.5 |
% |
(10) bp |
(90) bp |
|||||||||||||||
| Derivative Trades as a Percentage of Total Trades | 24.4 |
% |
24.2 |
% |
23.2 |
% |
23.1 |
% |
21.8 |
% |
21.8 |
% |
22.2 |
% |
21.9 |
% |
22.1 |
% |
21.9 |
% |
21.3 |
% |
21.2 |
% |
20.8 |
% |
(40) bp |
(360) bp |
|||||||||||||||
| Selected Average Balances (in millions of dollars) |
|
|
|||||||||||||||||||||||||||||||||||||||||
| Average Interest-Earning Assets (6) | 449,483 |
|
444,864 |
|
438,522 |
|
439,118 |
|
446,305 |
|
443,694 |
|
434,822 |
|
431,456 |
|
423,532 |
|
415,950 |
|
417,150 |
|
417,379 |
|
420,191 |
|
|
( |
|||||||||||||||
| Average Margin Balances | 64,226 |
|
64,014 |
|
63,946 |
|
61,502 |
|
62,309 |
|
61,368 |
|
63,600 |
|
66,425 |
|
68,827 |
|
67,614 |
|
69,730 |
|
73,206 |
|
73,326 |
|
- |
|
|||||||||||||||
| Average Bank Deposit Account Balances (7) | 101,928 |
|
100,404 |
|
97,893 |
|
94,991 |
|
95,518 |
|
95,553 |
|
92,075 |
|
90,774 |
|
88,819 |
|
86,844 |
|
85,195 |
|
83,979 |
|
82,806 |
|
( |
( |
|||||||||||||||
| Mutual Fund and Exchange-Traded Fund | |||||||||||||||||||||||||||||||||||||||||||
| Net Buys (Sells) (8,9) (in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||
| Equities | (278 |
) |
675 |
|
(3,039 |
) |
6,099 |
|
7,903 |
|
8,182 |
|
7,624 |
|
10,379 |
|
3,472 |
|
5,734 |
|
3,379 |
|
10,908 |
|
5,609 |
|
|||||||||||||||||
| Hybrid | (1,037 |
) |
(828 |
) |
(1,457 |
) |
(1,466 |
) |
(1,596 |
) |
(501 |
) |
(1,330 |
) |
(439 |
) |
(703 |
) |
(558 |
) |
(843 |
) |
(1,155 |
) |
(1,377 |
) |
|||||||||||||||||
| Bonds | 4,696 |
|
2,723 |
|
1,094 |
|
255 |
|
6,104 |
|
7,510 |
|
9,883 |
|
7,561 |
|
5,949 |
|
5,854 |
|
6,346 |
|
8,651 |
|
10,919 |
|
|||||||||||||||||
| Net Buy (Sell) Activity (in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||
| Mutual Funds (8) | (6,476 |
) |
(5,853 |
) |
(12,245 |
) |
(9,267 |
) |
(7,406 |
) |
(966 |
) |
(1,348 |
) |
(1,607 |
) |
(4,818 |
) |
(5,544 |
) |
(4,254 |
) |
(4,679 |
) |
(4,003 |
) |
|||||||||||||||||
| Exchange-Traded Funds (9) | 9,857 |
|
8,423 |
|
8,843 |
|
14,155 |
|
19,817 |
|
16,157 |
|
17,525 |
|
19,108 |
|
13,536 |
|
16,574 |
|
13,136 |
|
23,083 |
|
19,154 |
|
|||||||||||||||||
| Money Market Funds | 16,869 |
|
13,388 |
|
16,976 |
|
11,670 |
|
7,745 |
|
11,717 |
|
10,129 |
|
9,085 |
|
(2,357 |
) |
9,790 |
|
3,858 |
|
9,110 |
|
8,048 |
|
|||||||||||||||||
|
|
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 outflow from a large international relationship of |
(2) |
|
Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than |
(3) |
|
Excludes Retirement Business Services. |
(4) |
|
Beginning October 2023, Retirement Plan Participants was expanded to include accounts in Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business. Prior periods have been recast to reflect this change. |
(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; client cash excludes brokered CDs issued by Charles Schwab Bank. |
(6) |
|
Represents average total interest-earning assets on the Company's balance sheet. |
(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 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240916701159/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 Charles Schwab's (SCHW) core net new asset growth in August 2024?
How much did Charles Schwab's (SCHW) total client assets grow year-over-year in August 2024?
What is the expected revenue growth for Charles Schwab (SCHW) in Q3 2024?
How many new brokerage accounts did Charles Schwab (SCHW) open in August 2024?
