Company Announcements

Schwab Reports Monthly Activity Highlights

WESTLAKE, Texas--(BUSINESS WIRE)--May 13, 2022-- The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of April 2022 include:

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  • Core net new assets brought to the company by new and existing clients totaled negative $9.2 billion. Net new assets excluding mutual fund clearing totaled negative $6.5 billion. These flows reflect client cash disbursements during tax season.
  • Total client assets were $7.28 trillion as of month-end April, down 1% from April 2021 and down 7% compared to March 2022.
  • Average interest-earning assets were $636.7 billion in April, up 21% from April 2021 and down 1% compared to March 2022.

CFO Peter Crawford commented, “Client cash disbursements during this year’s tax season were the highest we’ve ever seen at Schwab. These outflows include the impact of client portfolio actions taken during 2021, a year marked by strong equity market performance and robust trading activity. Such seasonal activity is distinct from flows within client accounts rebalancing their cash positions between daily liquidity and investments such as money market funds. This rebalancing, or sorting, activity tends to occur as an extended period of low interest rates shifts into a rising rate environment and clients refresh their allocations.”

“While the Federal Reserve has taken initial steps to move interest rates higher thus far in 2022, short rates are just now approaching the point where we’d expect to see clients start to rebalance their cash positions,” Mr. Crawford continued. “Assuming the Fed’s tightening cycle remains consistent with current forecasts, we believe we could see rebalancing activity begin to surface before the end of the second quarter. Such actions may lead to a slight decline in balance sheet assets from current levels over the next quarter or two (assuming clients don’t meaningfully shift their investments from equities to cash). As we help clients navigate this environment, we remain confident that the successful execution of our 'Through Clients’ Eyes' strategy, coupled with our all-weather financial model, will support strong long-term growth - in our client base, and in value for our stockholders.”

Forward-Looking Statements
This press release contains forward-looking statements relating to the rebalancing of client cash positions; balance sheet growth; and growth in the client base and stockholder value. Achievement of these expectations, beliefs, 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 equity valuations, trading activity, and the level of interest rates; competitive pressures on pricing; client cash sorting; client sensitivity to rates; the level of client assets, including cash balances; the migration of bank deposit account balances; capital and liquidity needs and management; market volatility; the company’s ability to attract and retain clients and registered investment advisors and grow those relationships and associated client assets; the company’s ability to monetize client assets; the company’s ability to develop and launch new and enhanced products, services, and capabilities, as well as enhance its infrastructure, in a timely and successful manner; client use of the company’s advisory solutions and other products and services; the company’s ability to support client activity levels and attract and retain talent; the Ameritrade integration, including expected synergies; the company’s ability to manage expenses; balance sheet positioning relative to changes in interest rates; interest earning asset mix and growth; the scope and duration of the COVID-19 pandemic and actions taken by governmental authorities to contain the spread of the virus and the economic impact; 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 33.8 million active brokerage accounts, 2.3 million corporate retirement plan participants, 1.7 million banking accounts, and $7.28 trillion in client assets as of April 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 April 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

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®

33,875

 

34,529

 

34,503

 

34,935

 

35,361

 

33,844

 

35,820

 

34,484

 

36,338

 

35,132

 

33,893

 

34,678

 

32,977

 

(5

%)

(3

%)

Nasdaq Composite®

13,963

 

13,749

 

14,504

 

14,673

 

15,259

 

14,449

 

15,498

 

15,538

 

15,645

 

14,240

 

13,751

 

14,221

 

12,335

 

(13

%)

(12

%)

Standard & Poor’s® 500

4,181

 

4,204

 

4,298

 

4,395

 

4,523

 

4,308

 

4,605

 

4,567

 

4,766

 

4,516

 

4,374

 

4,530

 

4,132

 

(9

%)

(1

%)

Client Assets (in billions of dollars)
Beginning Client Assets

7,069.1

 

7,336.1

 

7,395.7

 

7,574.8

 

7,642.7

 

7,838.2

 

7,614.0

 

7,982.3

 

7,918.3

 

8,138.0

 

7,803.8

 

7,686.6

 

7,862.1

 

Net New Assets (1)

37.2

 

28.1

 

43.5

 

44.3

 

51.8

 

42.9

 

22.9

 

31.4

 

80.3

 

33.6

 

40.6

 

46.3

 

(9.2

)

(120

%)

(125

%)

Net Market Gains (Losses)

229.8

 

31.5

 

135.6

 

23.6

 

143.7

 

(267.1

)

345.4

 

(95.4

)

139.4

 

(367.8

)

(157.8

)

129.2

 

(568.5

)

Total Client Assets (at month end)

7,336.1

 

7,395.7

 

7,574.8

 

7,642.7

 

7,838.2

 

7,614.0

 

7,982.3

 

7,918.3

 

8,138.0

 

7,803.8

 

7,686.6

 

7,862.1

 

7,284.4

 

(7

%)

(1

%)

Core Net New Assets (2)

37.2

 

28.1

 

43.5

 

44.3

 

51.8

 

42.9

 

36.8

 

45.1

 

80.3

 

33.6

 

40.6

 

46.3

 

(9.2

)

(120

%)

(125

%)

Receiving Ongoing Advisory Services (at month end)
Investor Services

511.1

 

517.8

 

525.1

 

531.9

 

542.5

 

530.1

 

548.3

 

543.1

 

559.2

 

541.9

 

533.7

 

538.9

 

509.3

 

(5

%)

-

 

Advisor Services (3)

3,112.5

 

3,150.4

 

3,209.3

 

3,256.5

 

3,333.4

 

3,253.2

 

3,399.8

 

3,374.3

 

3,505.2

 

3,382.4

 

3,342.5

 

3,404.6

 

3,190.5

 

(6

%)

3

%

Client Accounts (at month end, in thousands)
Active Brokerage Accounts

31,877

 

32,110

 

32,265

 

32,386

 

32,513

 

32,675

 

32,796

 

32,942

 

33,165

 

33,308

 

33,421

 

33,577

 

33,759

 

1

%

6

%

Banking Accounts

1,562

 

1,584

 

1,574

 

1,578

 

1,594

 

1,580

 

1,593

 

1,608

 

1,614

 

1,628

 

1,641

 

1,641

 

1,652

 

1

%

6

%

Corporate Retirement Plan Participants

2,116

 

2,130

 

2,149

 

2,159

 

2,188

 

2,207

 

2,213

 

2,198

 

2,200

 

2,216

 

2,235

 

2,246

 

2,261

 

1

%

7

%

Client Activity
New Brokerage Accounts (in thousands)

609

 

549

 

499

 

402

 

402

 

374

 

397

 

448

 

473

 

426

 

356

 

420

 

386

 

(8

%)

(37

%)

Client Cash as a Percentage of Client Assets (4)

10.9

%

10.8

%

10.5

%

10.4

%

10.3

%

10.8

%

10.4

%

10.5

%

10.9

%

11.3

%

11.5

%

11.4

%

11.9

%

50 bp

 

100 bp

Derivative Trades as a Percentage of Total Trades

20.4

%

20.9

%

20.6

%

22.2

%

23.1

%

23.1

%

22.5

%

23.4

%

23.0

%

22.4

%

24.0

%

22.4

%

21.9

%

(50) bp

 

150 bp

Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (5)

527,194

 

528,642

 

536,146

 

546,579

 

552,372

 

565,379

 

574,181

 

584,362

 

605,709

 

622,997

 

629,042

 

644,768

 

636,668

 

(1

%)

21

%

Average Margin Balances

72,863

 

75,921

 

78,410

 

79,910

 

81,021

 

81,705

 

83,835

 

87,311

 

88,328

 

86,737

 

84,354

 

81,526

 

83,762

 

3

%

15

%

Average Bank Deposit Account Balances (6)

162,392

 

160,459

 

161,377

 

151,275

 

150,896

 

152,330

 

154,040

 

153,877

 

154,918

 

157,706

 

153,824

 

155,657

 

152,653

 

(2

%)

(6

%)

Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (7,8) (in millions of dollars)
Equities

13,422

 

9,854

 

10,873

 

7,418

 

8,808

 

7,596

 

8,840

 

13,099

 

11,519

 

7,384

 

9,371

 

14,177

 

(786

)

Hybrid

877

 

1

 

390

 

666

 

569

 

335

 

81

 

308

 

(1,207

)

(367

)

(478

)

(497

)

(529

)

Bonds

8,940

 

5,906

 

10,101

 

6,917

 

8,044

 

6,232

 

4,425

 

4,097

 

5,600

 

1,804

 

(1,973

)

(7,851

)

(6,933

)

Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (7)

5,754

 

2,022

 

5,872

 

2,644

 

3,876

 

(308

)

302

 

189

 

(2,859

)

(4,961

)

(6,318

)

(11,888

)

(16,657

)

Exchange-Traded Funds (8)

17,485

 

13,739

 

15,492

 

12,357

 

13,545

 

14,471

 

13,044

 

17,315

 

18,771

 

13,782

 

13,238

 

17,717

 

8,409

 

Money Market Funds

(5,153

)

(3,988

)

(3,806

)

(2,501

)

(1,372

)

(1,512

)

(451

)

(1,725

)

(144

)

(1,984

)

(1,086

)

(1,344

)

(3,430

)

 

Note: Certain supplemental details related to the information above can be found at: https://www.aboutschwab.com/financial-reports.

(1)

 

November 2021 includes an outflow of $13.7 billion from a mutual fund clearing services client. October 2021 includes an outflow of $13.9 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)

 

Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets.

(5)

 

Represents average total interest-earning assets on the company's balance sheet.

(6)

 

Represents average TD Ameritrade clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions.

(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.

 

MEDIA:
Mayura Hooper
Charles Schwab
Phone: 415-667-1525

INVESTORS/ANALYSTS:
Jeff Edwards
Charles Schwab
Phone: 415-667-1524

Source: The Charles Schwab Corporation