Company Announcements

Schwab Reports Monthly Activity Highlights

WESTLAKE, Texas--(BUSINESS WIRE)--Jun. 14, 2022-- The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of May 2022 include:

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220614005466/en/

  • Core net new assets brought to the company by new and existing clients totaled $32.8 billion, as this year’s tax season followed a normal schedule for the first time since 2019. Net new assets excluding mutual fund clearing totaled $34.2 billion.
  • Total client assets were $7.30 trillion as of month-end May, down 1% from May 2021 and flat compared to April 2022.
  • Client cash as a percentage of assets was 12.0% as of month-end May, compared with 10.8% in May 2021 and 11.9% in April 2022.

CFO Peter Crawford commented, “Schwab’s strong business momentum and rising interest rates are helping power our diversified financial model. To the extent equity market valuations, client trading activity, and margin loan utilization remain at early June levels, we currently expect sequential revenue growth of 7.5% to 8.5% in the second quarter. At the same time, we anticipate second quarter GAAP expenses staying essentially flat relative to the prior period.”

Forward-Looking Statements

This press release contains forward-looking statements relating to Schwab’s business momentum; expected sequential revenue growth in the second quarter; and anticipated second quarter GAAP expenses. 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 and the level of interest rates; the level and mix of client trading activity; margin loan balances; securities lending; competitive pressures on pricing; client cash sorting; client sensitivity to rates; the level of client assets, including cash balances; 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 support client activity levels and attract and retain talent; balance sheet positioning relative to changes in interest rates; interest earning asset mix and growth; the company’s ability to manage expenses; integration-related and other technology projects; compensation; capital expenditures; the effect of adverse developments in litigation or regulatory matters and the extent of any charges associated with such matters; 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 $7.30 trillion in client assets as of May 31, 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 May 2022
 

2021

2022

Change
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Mo. Yr.

Market Indices (at month end)

Dow Jones Industrial Average®

34,529

 

34,503

 

34,935

 

35,361

 

33,844

 

35,820

 

34,484

 

36,338

 

35,132

 

33,893

 

34,678

 

32,977

 

32,990

 

-

(4%)

Nasdaq Composite®

13,749

 

14,504

 

14,673

 

15,259

 

14,449

 

15,498

 

15,538

 

15,645

 

14,240

 

13,751

 

14,221

 

12,335

 

12,081

 

(2%)

(12%)

Standard & Poor’s® 500

4,204

 

4,298

 

4,395

 

4,523

 

4,308

 

4,605

 

4,567

 

4,766

 

4,516

 

4,374

 

4,530

 

4,132

 

4,132

 

-

(2%)

Client Assets (in billions of dollars)

 

 

Beginning Client Assets

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

 

 

 

Net New Assets (1)

28.1

 

43.5

 

44.3

 

51.8

 

42.9

 

22.9

 

31.4

 

80.3

 

33.6

 

40.6

 

46.3

 

(9.2

)

32.8

 

N/M

17%

Net Market Gains (Losses)

31.5

 

135.6

 

23.6

 

143.7

 

(267.1

)

345.4

 

(95.4

)

139.4

 

(367.8

)

(157.8

)

129.2

 

(568.5

)

(15.5

)

 

 

Total Client Assets (at month end)

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

 

7,301.7

 

-

(1%)

Core Net New Assets (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

)

32.8

 

N/M

17%

Receiving Ongoing Advisory Services (at month end)

 

 

Investor Services

517.8

 

525.1

 

531.9

 

542.5

 

530.1

 

548.3

 

543.1

 

559.2

 

541.9

 

533.7

 

538.9

 

509.3

 

513.0

 

1%

(1%)

Advisor Services (3)

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

 

3,213.8

 

1%

2%

Client Accounts (at month end, in thousands)

 

 

Active Brokerage Accounts

32,110

 

32,265

 

32,386

 

32,513

 

32,675

 

32,796

 

32,942

 

33,165

 

33,308

 

33,421

 

33,577

 

33,759

 

33,822

 

-

5%

Banking Accounts

1,584

 

1,574

 

1,578

 

1,594

 

1,580

 

1,593

 

1,608

 

1,614

 

1,628

 

1,641

 

1,641

 

1,652

 

1,658

 

-

5%

Corporate Retirement Plan Participants

2,130

 

2,149

 

2,159

 

2,188

 

2,207

 

2,213

 

2,198

 

2,200

 

2,216

 

2,235

 

2,246

 

2,261

 

2,275

 

1%

7%

Client Activity

 

 

New Brokerage Accounts (in thousands)

549

 

499

 

402

 

402

 

374

 

397

 

448

 

473

 

426

 

356

 

420

 

386

 

323

 

(16%)

(41%)

Client Cash as a Percentage of Client Assets (4)

10.8%

10.5%

10.4%

10.3%

10.8%

10.4%

10.5%

10.9%

11.3%

11.5%

11.4%

11.9%

12.0%

10 bp

120 bp

Derivative Trades as a Percentage of Total Trades

20.9%

20.6%

22.2%

23.1%

23.1%

22.5%

23.4%

23.0%

22.4%

24.0%

22.4%

21.9%

22.6%

70 bp

170 bp

Selected Average Balances (in millions of dollars)

 

 

Average Interest-Earning Assets (5)

528,642

 

536,146

 

546,579

 

552,372

 

565,379

 

574,181

 

584,362

 

605,709

 

622,997

 

629,042

 

644,768

 

636,668

 

620,157

 

(3%)

17%

Average Margin Balances

75,921

 

78,410

 

79,910

 

81,021

 

81,705

 

83,835

 

87,311

 

88,328

 

86,737

 

84,354

 

81,526

 

83,762

 

78,841

 

(6%)

4%

Average Bank Deposit Account Balances (6)

160,459

 

161,377

 

151,275

 

150,896

 

152,330

 

154,040

 

153,877

 

154,918

 

157,706

 

153,824

 

155,657

 

152,653

 

154,669

 

1%

(4%)

Mutual Fund and Exchange-Traded Fund

Net Buys (Sells) (7,8) (in millions of dollars)

Equities

9,854

 

10,873

 

7,418

 

8,808

 

7,596

 

8,840

 

13,099

 

11,519

 

7,384

 

9,371

 

14,177

 

(786

)

1,889

 

Hybrid

1

 

390

 

666

 

569

 

335

 

81

 

308

 

(1,207

)

(367

)

(478

)

(497

)

(529

)

(1,718

)

Bonds

5,906

 

10,101

 

6,917

 

8,044

 

6,232

 

4,425

 

4,097

 

5,600

 

1,804

 

(1,973

)

(7,851

)

(6,933

)

(6,121

)

Net Buy (Sell) Activity (in millions of dollars)

Mutual Funds (7)

2,022

 

5,872

 

2,644

 

3,876

 

(308

)

302

 

189

 

(2,859

)

(4,961

)

(6,318

)

(11,888

)

(16,657

)

(20,761

)

Exchange-Traded Funds (8)

13,739

 

15,492

 

12,357

 

13,545

 

14,471

 

13,044

 

17,315

 

18,771

 

13,782

 

13,238

 

17,717

 

8,409

 

14,811

 

Money Market Funds

(3,988

)

(3,806

)

(2,501

)

(1,372

)

(1,512

)

(451

)

(1,725

)

(144

)

(1,984

)

(1,086

)

(1,344

)

(3,430

)

7,106

 

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.

N/M - Not meaningful. Percentage changes greater than 200% are presented as not meaningful.

 

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

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

Source: The Charles Schwab Corporation