Schwab Reports Monthly Activity Highlights

The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of February 2024 include:

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240314277581/en/

• Core net new assets brought to the company by new and existing clients totaled $33.4 billion. Net new assets excluding mutual fund clearing totaled $31.1 billion.
• Total client assets were $8.88 trillion as of month-end February, up 20% from February 2023 and up 4% versus January 2024.
• Transactional sweep cash ended February 2024 at $403.2 billion, representing a decrease of $2.9 billion versus the prior month.
• With the company’s diversified financial model benefiting from rising equity markets and stronger client trading activity to start the year, the company anticipates first quarter sequential revenue growth of approximately 5% to 6% and adjusted⁽¹⁾ pre-tax profit margin expansion of nearly four percentage points versus the fourth quarter as the full impact of the late 2023 incremental cost savings are realized.

(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. 1Q24 GAAP pre-tax profit margin is currently expected to expand by more than 900 basis points versus 4Q23. This sequential improvement is driven by a combination of business performance and lower expected non-GAAP adjustments during the first quarter of 2024. 4Q23 adjustments totaled $413 million, including $216 million in pre-tax restructuring costs.

Forward-Looking Statements

This press release contains forward-looking statements relating to first quarter revenue and adjusted pre-tax profit margin. These forward-looking statements reflect management’s expectations as of the date hereof. Achievement of these expectations 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, client use of the company’s advisory solutions and other products and services; general market conditions, including the level of interest rates and equity valuations; client cash allocation decisions; client sensitivity to rates; level of client assets, including cash balances; competitive pressures on pricing; balance sheet positioning relative to changes in interest rates; interest earning asset mix and growth; the level and mix of client trading activity; market volatility; securities lending; and margin loan balances. Other important factors include the company’s ability to support client activity levels, monetize client assets, and manage expenses; developments in litigation or regulatory matters; and other factors set forth in the company’s most recent report on Form 10-K.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 35.1 million active brokerage accounts, 5.3 million workplace plan participant accounts, 1.9 million banking accounts, and $8.88 trillion in client assets as of February 29, 2024. 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 LLC. TD Ameritrade Holding LLC 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 2024
			2023																																	2024						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			32,657			33,274			34,098			32,908			34,408			35,560			34,722			33,508			33,053			35,951			37,690			38,150			38,996			2	%	19	%
Nasdaq Composite			11,456			12,222			12,227			12,935			13,788			14,346			14,035			13,219			12,851			14,226			15,011			15,164			16,092			6	%	40	%
Standard & Poor’s 500			3,970			4,109			4,169			4,180			4,450			4,589			4,508			4,288			4,194			4,568			4,770			4,846			5,096			5	%	28	%
Client Assets (in billions of dollars)
Beginning Client Assets			7,480.6			7,380.2			7,580.0			7,631.5			7,650.2			8,015.8			8,241.0			8,094.7			7,824.5			7,653.4			8,180.6			8,516.6			8,558.1
Net New Assets (1)			41.7			72.9			13.6			24.6			33.8			12.9			8.1			27.2			5.0			19.2			42.1			14.8			31.7			114	%	(24	%)
Net Market (Losses) Gains			(142.1	)		126.9			37.9			(5.9	)		331.8			212.3			(154.4	)		(297.4	)		(176.1	)		508.0			293.9			26.7			289.7
Total Client Assets (at month end)			7,380.2			7,580.0			7,631.5			7,650.2			8,015.8			8,241.0			8,094.7			7,824.5			7,653.4			8,180.6			8,516.6			8,558.1			8,879.5			4	%	20	%
Core Net New Assets (1,2)			41.7			53.9			(2.3	)		20.7			33.8			13.7			4.9			27.1			11.3			21.7			43.1			17.2			33.4			94	%	(20	%)
Receiving Ongoing Advisory Services (at month end)
Investor Services			515.5			526.2			530.7			526.3			547.5			560.6			552.2			533.0			522.2			557.0			581.4			584.1			601.8			3	%	17	%
Advisor Services (3)			3,289.6			3,369.3			3,394.9			3,377.8			3,527.8			3,619.8			3,554.2			3,448.0			3,380.3			3,604.4			3,757.4			3,780.4			3,902.5			3	%	19	%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts			34,010			34,120			34,248			34,311			34,382			34,434			34,440			34,540			34,571			34,672			34,838			35,017			35,127			-		3	%
Banking Accounts			1,733			1,746			1,757			1,768			1,781			1,792			1,798			1,799			1,812			1,825			1,838			1,856			1,871			1	%	8	%
Workplace Plan Participant Accounts (4)			4,839			4,845			4,869			4,962			5,003			5,030			5,037			5,141			5,212			5,212			5,221			5,226			5,268			1	%	9	%
Client Activity
New Brokerage Accounts (in thousands)			320			378			331			314			315			303			311			280			284			286			340			366			345			(6	%)	8	%
Client Cash as a Percentage of Client Assets (5,6)			11.6	%		11.2	%		10.8	%		10.9	%		10.5	%		10.2	%		10.4	%		10.8	%		11.2	%		10.7	%		10.5	%		10.5	%		10.2	%		(30) bp		(140) bp
Derivative Trades as a Percentage of Total Trades			23.5	%		22.8	%		23.4	%		23.5	%		23.9	%		23.0	%		24.4	%		24.2	%		23.2	%		23.1	%		21.8	%		21.8	%		22.2	%		40 bp		(130) bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (7)			503,122			497,627			493,215			483,438			479,752			466,659			449,483			444,864			438,522			439,118			446,305			443,694			434,822			(2	%)	(14	%)
Average Margin Balances			60,575			60,848			60,338			60,250			61,543			63,040			64,226			64,014			63,946			61,502			62,309			61,368			63,600			4	%	5	%
Average Bank Deposit Account Balances (8)			115,816			109,392			104,775			103,149			102,917			102,566			101,928			100,404			97,893			94,991			95,518			95,553			92,075			(4	%)	(20	%)
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (9,10) (in millions of dollars)
Equities			5,850			(3,234	)		1,126			(1,366	)		9,190			7,423			(278	)		675			(3,039	)		6,099			7,903			8,182			7,624
Hybrid			47			(1,641	)		(462	)		(889	)		(903	)		(407	)		(1,037	)		(828	)		(1,457	)		(1,466	)		(1,596	)		(501	)		(1,330	)
Bonds			4,281			6,158			2,575			2,029			3,302			2,515			4,696			2,723			1,094			255			6,104			7,510			9,883
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (9)			(2,338	)		(7,423	)		(4,904	)		(7,157	)		(4,485	)		(3,333	)		(6,476	)		(5,853	)		(12,245	)		(9,267	)		(7,406	)		(966	)		(1,348	)
Exchange-Traded Funds (10)			12,516			8,706			8,143			6,931			16,074			12,864			9,857			8,423			8,843			14,155			19,817			16,157			17,525
Money Market Funds			23,347			27,106			6,291			15,256			9,112			7,911			16,869			13,388			16,976			11,670			7,745			11,717			10,129

	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 - including March 2023 which reflects inflows of $19.0 billion from off-platform Schwab Bank Retail CDs issued year-to-date through March 31, 2023. Additionally, 2023 includes outflows from a large international relationship of $0.8 billion in September, $6.2 billion in October, $5.4 billion in November, and $0.6 billion in December, and an inflow of $12.0 billion from a mutual fund clearing services client in April.
(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, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods.
(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.
(6)	Beginning July 2023, client cash as a percentage of client assets excludes brokered CDs issued by Charles Schwab Bank. Prior periods have been recast to reflect this change.
(7)	Represents average total interest-earning assets on the Company's balance sheet.
(8)	Represents average clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions.
(9)	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.
(10)	Represents the principal value of client ETF transactions handled by Schwab, including transactions in proprietary ETFs.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240314277581/en/

The Charles Schwab Stock at the time of publication of the news with a raise of +0,41 % to 61,70USD on Tradegate stock exchange (14. März 2024, 13:44 Uhr).