Revenues Grow 14% Year-Over-Year to $2.7
Billion, Marking Fifteen Consecutive Record Quarters
Core Net New Assets Total $51.7 Billion and
Total Client Assets Reach a Record $3.59 Trillion
The Charles Schwab Corporation announced today that its net
income for the first quarter of 2019 was a record $964 million, up
3% from $935 million for the prior quarter, and up 23% from
$783 million for the first quarter of 2018.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20190415005169/en/
Three Months Ended March 31, % Financial Highlights
2019 2018 Change Net revenues (in
millions) $ 2,723 $ 2,398 14% Net income (in millions) $ 964 $ 783
23% Diluted earnings per common share $ .69 $ .55 25% Pre-tax
profit margin 46.4 % 41.8 %
Return on average common stockholders’
equity (annualized)
20 % 18 % Note: All per-share results are rounded to the
nearest cent, based on weighted-average diluted common shares
outstanding.
CEO Walt Bettinger said, “Over the past quarter, our Virtuous
Cycle, driven by our “Through Clients’ Eyes” strategy, continued to
attract client accounts and assets at a robust pace. The equity
markets gathered momentum during the quarter, with the S&P 500
rising 21% from the December correction and posting its best first
quarter since 1998. At the same time, investors faced a mixed
geopolitical and economic landscape, including international trade
negotiations, the evolving Brexit debate, and a potential slowing
in Fed rate hikes. While we believe that this environment impacted
investor sentiment and activity, demand for help and support from
Schwab remained strong. New brokerage accounts totaled 386,000
during the quarter and client account openings have now exceeded
100,000 for 28 consecutive months. In addition, clients
entrusted us with total core net new assets of $51.7 billion for
the quarter, representing a 6% annualized growth rate, consistent
with our long-term average and a noteworthy start to 2019,
particularly given the unsettled environment. Total client assets
reached a record $3.59 trillion at month-end March, up 8%
year-over-year.”
“We remain steadfast in our ‘no-trade offs’ approach to serving
clients, diligently seeking to offer straightforward and
transparent products and services that provide investors with
greater choice and value,” Mr. Bettinger continued. “Recently, we
marked the sixth anniversary of Schwab ETF OneSourceTM, already one
of the largest commission-free exchange-traded fund programs in the
industry, by doubling its lineup to 500 ETFs covering 79
Morningstar® categories. Client assets held in program ETFs have
grown at a compound annual rate of approximately 50% since
inception, reaching $180.9 billion at quarter end. In addition, as
part of our ongoing efforts to provide clients with the help and
advice needed to pursue their investing goals, we recently replaced
Schwab Intelligent AdvisoryTM with Schwab Intelligent Portfolios
PremiumTM. This solution combines automated investing with guidance
from a certified planning professional in a subscription-based
package designed to offer a simpler, more modern and more
approachable planning and investing experience. Client assets
enrolled in our digital advisory solutions at quarter end reached
$37.7 billion, up 23% from a year ago. Overall assets receiving
ongoing advice grew faster than total client assets over the past
year, and totaled $1.87 trillion at March 31, 2019.”
Mr. Bettinger added, “Recently, Schwab was selected as one of
the 2019 FORTUNE Top 50 ‘World’s Most Admired Companies®’, as well
as rated #1 Overall in the 2019 Investor’s Business Daily Best
Online Brokers Survey. In addition, we ranked Highest in Investor
Satisfaction with DIY Self-Directed Services in the J.D. Power 2019
U.S. Self-Directed Investor Satisfaction Study.* While these
accolades come from distinct perspectives, we believe they all
reflect the importance of our emphasis on value, service,
transparency, and trust as we attract and support a growing share
of U.S. investable wealth.”
CFO Peter Crawford commented, “Our unwavering focus on
championing our clients’ goals translated into strong first quarter
financial performance as well as business growth, indicating the
Schwab financial formula continues to operate as intended. Overall,
revenues rose by 14% year-over-year to a record $2.7 billion. Net
interest revenue grew 33% to a record $1.7 billion largely due to
higher interest-earning assets stemming from the transfer of sweep
money market funds to bank and broker-dealer sweep as well as
client cash allocations. Additionally, our net interest margin
expanded to 2.46%, up from 2.12% a year earlier, following the
Fed’s four rate hikes in 2018. Asset management and administration
fees decreased 11% to $755 million, mainly as a result of lower
money market fund revenue as we executed on sweep transfers.
Trading revenue declined by 8% to $185 million largely due to
client first quarter trading activity that was strong but below
last year’s then-record pace. Finally, other revenue rose 23%,
driven by a gain on the assignment of leased office space in our
215 Fremont building in San Francisco. Turning to expenses, our 5%
increase in spending was consistent with our expectations.
Compensation was 10% higher in the first quarter as we hired to
serve our expanding client base. Professional services rose by 9%,
primarily due to our investments in projects to further drive
efficiency and scale. Our disciplined expense management helped
result in a 900 basis point gap between year-over-year revenue and
expense growth, and a 46.4% pre-tax profit margin. We believe this
focus positions us well to maintain and even improve our ratio of
expenses to client assets, which was just 17 bps for the quarter
using average balances, and 16 bps based on the quarter-end
total.”
Mr. Crawford concluded, “During the first quarter, we continued
to emphasize effective balance sheet management. While clients
sorted through their invested and transactional cash allocations,
we transferred $11.6 billion from sweep money market funds to bank
and broker-dealer sweep. This activity contributed to consolidated
balance sheet assets of $283 billion at quarter end. A small amount
of the $14.4 billion in sweep money market fund balances
outstanding as of month-end March remains to be transferred; we
expect to complete those transfers by the end of April. In January
2019, we announced a 31% increase in our dividend and a $4 billion
stock repurchase authorization, which we expect to access in coming
quarters to return excess capital to stockholders. Our preliminary
Tier 1 Leverage Ratio ended the quarter at 7.2%, modestly above our
operating objective of 6.75%-7%. We achieved a 20% return on equity
for the third consecutive quarter – our strongest performance since
early 2009 – exemplifying our commitment to being good stewards of
our stockholders’ capital.”
Supporting schedules and selected balances are either attached
or located at: https://www.aboutschwab.com/financial-reports.
*Disclaimer: From FORTUNE Magazine, February 2019, ©2019 Fortune
Media IP Limited. FORTUNE and The World’s Most Admired Companies
are registered trademarks of Fortune Media IP Limited and are used
under license. FORTUNE and Fortune Media IP Limited are not
affiliated with, and do not endorse the products or services of,
Charles Schwab.
From Investor’s Business Daily, January 28, 2019, ©2019
Investor’s Business Daily, Inc. All rights reserved. Used by
permission and protected by the Copyright Laws of the United
States. The printing, copying, redistribution or retransmission of
this Content without express written permission is prohibited.
Charles Schwab received the highest numerical score in the DIY
segment of the J.D. Power 2019 Self-Directed Investor Satisfaction
Study of investors’ satisfaction who use self-directed investment
firms. Visit https://jdpower.com/awards.
Commentary from the CFO
Periodically, our Chief Financial Officer provides insight and
commentary regarding Schwab’s financial picture at: https://www.aboutschwab.com/cfo-commentary. The
most recent commentary, which provides perspective on crossing the
$250 billion consolidated asset threshold for heightened
regulatory requirements, was posted on August 14, 2018.
Forward-Looking Statements
This press release contains forward-looking statements relating
to Fed rate hikes; growth in the client base, accounts and assets;
efficiency and scale; ratio of expenses to client assets; transfers
to sweep; capital returns to stockholders; and Tier 1 Leverage
Ratio operating objective. 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 include, but
are not limited to, general market conditions, including the level
of interest rates, equity valuations, and trading activity; the
company’s ability to attract and retain clients and registered
investment advisors and grow those relationships and client assets;
competitive pressures on pricing, including deposit rates; the
company’s ability to develop and launch new products, services,
infrastructure and capabilities in a timely and successful manner;
client use of the company’s advisory solutions and other products
and services; the company’s ability to manage expenses; client
sensitivity to interest rates; capital and liquidity needs and
management; 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 more than 360 offices and
11.8 million active brokerage accounts, 1.7 million corporate
retirement plan participants, 1.3 million banking
accounts, and $3.59 trillion in client assets as of March 31, 2019.
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
subsidiary, Charles Schwab & Co., Inc. (member SIPC,
https://www.sipc.org), and 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 banking subsidiary, Charles Schwab Bank
(member FDIC and an Equal Housing Lender), provides banking and
lending services and products. More information is available at
https://www.schwab.com and
https://www.aboutschwab.com.
THE CHARLES SCHWAB CORPORATION
Consolidated Statements of Income
(In millions, except per share
amounts)
(Unaudited)
Three Months Ended March 31, 2019
2018
Net Revenues Interest revenue $ 1,998 $
1,421 Interest expense (317 ) (158 ) Net interest revenue 1,681
1,263 Asset management and administration fees 755 851 Trading
revenue 185 201 Other 102 83 Total net
revenues 2,723 2,398
Expenses
Excluding Interest Compensation and benefits 850 770
Professional services 170 156 Occupancy and equipment 131 122
Advertising and market development 69 73 Communications 62 62
Depreciation and amortization 83 73 Regulatory fees and assessments
32 51 Other 62 89 Total expenses
excluding interest 1,459 1,396 Income
before taxes on income 1,264 1,002 Taxes on income 300
219
Net Income 964
783 Preferred stock dividends and other 39
37
Net Income Available to Common Stockholders
$ 925 $ 746
Weighted-Average Common
Shares Outstanding: Basic 1,333 1,347 Diluted 1,344
1,362
Earnings Per Common Shares
Outstanding: Basic $ .69 $ .55 Diluted $ .69
$ .55 THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights (Unaudited)
Q1-19 % change 2019
2018 vs. vs. First Fourth Third Second
First (In millions, except per share amounts and as noted)
Q1-18 Q4-18 Quarter Quarter Quarter
Quarter Quarter
Net Revenues Net interest revenue 33
% 3 % $ 1,681 $ 1,626 $ 1,527 $ 1,407 $ 1,263 Asset management and
administration fees (11 )% — 755 755 809 814 851 Trading revenue (8
)% (10 )% 185 206 176 180 201 Other 23 % 24 % 102
82 67 85 83
Total net revenues 14 % 2 % 2,723 2,669
2,579 2,486 2,398
Expenses Excluding Interest Compensation and benefits 10 % 6
% 850 805 737 745 770 Professional services 9 % (4 )% 170 178 164
156 156 Occupancy and equipment 7 % 2 % 131 128 124 122 122
Advertising and market development (5 )% (26 )% 69 93 70 77 73
Communications — (2 )% 62 63 59 58 62 Depreciation and amortization
14 % 4 % 83 80 78 75 73 Regulatory fees and assessments (37 )% 3 %
32 31 57 50 51 Other (30 )% (23 )% 62 81
71 72 89 Total
expenses excluding interest 5 % — 1,459 1,459
1,360 1,355 1,396
Income before taxes on income 26 % 4 % 1,264 1,210 1,219 1,131
1,002 Taxes on income 37 % 9 % 300 275
296 265 219
Net
Income 23 % 3 % $ 964 $ 935
$ 923 $ 866 $ 783 Preferred
stock dividends and other 5 % (22 )% 39 50
38 53 37
Net
Income Available to Common Stockholders 24 % 5 % $ 925
$ 885 $ 885 $ 813
$ 746 Earnings per common share: Basic 25 % 5 % $ .69
$ .66 $ .66 $ .60 $ .55 Diluted 25 % 6 % $ .69 $ .65 $ .65 $ .60 $
.55 Dividends declared per common share 70 % 31 % $ .17 $ .13 $ .13
$ .10 $ .10 Weighted-average common shares outstanding: Basic (1 )%
(1 )% 1,333 1,343 1,351 1,350 1,347 Diluted (1 )% (1 )%
1,344 1,354 1,364 1,364
1,362
Performance Measures Pre-tax
profit margin 46.4 % 45.3 % 47.3 % 45.5 % 41.8 % Return on average
common stockholders’ equity (annualized) (1) 20 % 20
% 20 % 19 % 18 %
Financial Condition
(at quarter end, in billions) Cash and investments segregated 9 % 2
% $ 13.9 $ 13.6 $ 8.5 $ 11.0 $ 12.8 Receivables from brokerage
clients — net (3 )% (6 )% 20.5 21.7 22.4 22.4 21.2 Bank loans — net
1 % (1 )% 16.5 16.6 16.6 16.6 16.4 Total assets 14 % (5 )% 282.8
296.5 272.1 261.9 248.3 Bank deposits 15 % (5 )% 219.5 231.4 213.4
199.9 190.2 Payables to brokerage clients (5 )% (9 )% 29.7 32.7
27.9 30.3 31.1 Long-term debt 66 % (1 )% 6.8 6.9 5.8 5.8 4.1
Stockholders’ equity 12 % 4 % 21.6 20.7
20.8 20.1 19.3
Other Full-time equivalent employees (at quarter end, in
thousands) 10 % 3 % 20.0 19.5 19.1 18.7 18.2 Capital expenditures —
purchases of equipment, office facilities, andproperty, net (in
millions) 34 % 14 % $ 181 $ 159 $ 156 $ 126 $ 135 Expenses
excluding interest as a percentage of average client
assets(annualized) 0.17 % 0.17 % 0.15 %
0.16 % 0.17 %
Clients’ Daily Average Trades (in
thousands) Revenue trades (2) (10 )% (10 )% 418 466 382 376 462
Asset-based trades (3) 7 % (21 )% 149 188 129 149 139 Other trades
(4) — (1 )% 210 213 172
179 211 Total (4 )% (10 )% 777
867 683 704
812
Average Revenue Per Revenue Trade (2) (1 )% 1 %
$ 7.19 $ 7.13 $ 7.27
$ 7.30 $ 7.24
(1) Return on average common stockholders’
equity is calculated using net income available to common
stockholders divided by average common stockholders’ equity. (2)
Includes all client trades that generate trading revenue (i.e.,
commission revenue or principal transaction revenue); also known as
DART. (3) Includes eligible trades executed by clients who
participate in one or more of the company’s asset-based pricing
relationships. (4) Includes all commission-free trades, including
Schwab Mutual Fund OneSource® funds and ETFs, and other proprietary
products.
THE CHARLES SCHWAB CORPORATION
Net Interest Revenue Information
(In millions)
(Unaudited)
Three Months Ended March 31, 2019
2018 Interest Average Interest
Average Average Revenue/ Yield/ Average Revenue/ Yield/
Balance Expense Rate
Balance Expense Rate
Interest-earning assets
Cash and cash equivalents $ 24,983 $ 151 2.42 % $ 17,084 $ 66 1.53
% Cash and investments segregated 13,533 83 2.44 % 13,969 48 1.37 %
Broker-related receivables 257 2 2.75 % 287 1 1.32 % Receivables
from brokerage clients 18,972 214 4.52 % 18,872 179 3.79 %
Available for sale securities (1) 66,853 451 2.70 % 50,371 240 1.91
% Held to maturity securities 132,427 916 2.77 % 121,412 721 2.38 %
Bank loans 16,578 149 3.61 %
16,456 130 3.19 % Total
interest-earning assets 273,603 1,966
2.88 % 238,451 1,385
2.33 % Other interest revenue 32
36
Total interest-earning assets $ 273,603 $
1,998 2.92 % $ 238,451 $
1,421 2.39 %
Funding sources Bank deposits $
219,987 $ 226 0.42 % $ 176,988 $ 64 0.15 % Payables to brokerage
clients 22,184 23 0.43 % 22,469 7 0.14 % Short-term borrowings (2)
30 — 2.48 % 12,170 47 1.55 % Long-term debt 6,845
62 3.61 % 4,392 37
3.37 % Total interest-bearing liabilities
249,046 311 0.51 %
216,019 155 0.29 % Non-interest-bearing
funding sources 24,557 22,432 Other interest expense
6 3
Total funding sources $ 273,603
$ 317 0.46 % $ 238,451 $
158 0.27 %
Net interest revenue
$ 1,681 2.46 %
$ 1,263
2.12 % (1) Amounts have been calculated based
on amortized cost. (2) Interest expense was less than $500,000 in
the period presented.
THE CHARLES SCHWAB CORPORATION
Asset Management and Administration Fees Information
(In millions)
(Unaudited)
Three Months Ended March 31, 2019 2018
Average Average Client Average Client
Average Assets Revenue Fee
Assets Revenue Fee Schwab money market funds $
158,268 $ 122 0.31 % $ 156,362 $ 182 0.47 % Schwab equity and bond
funds, ETFs, and collective trust funds (CTFs) (1) 244,314 70 0.12
% 212,519 74 0.14 % Mutual Fund OneSource® and other
non-transaction fee funds 187,223 147 0.32 % 222,669 178 0.32 %
Other third-party mutual funds and ETFs (2) 452,461
75 0.07 % 319,722
70 0.09 % Total mutual funds, ETFs, and CTFs (3)
$ 1,042,266 414 0.16 %
$ 911,272 504 0.22 % Advice
solutions (3) Fee-based $ 230,394 278 0.49 % $ 224,760 282 0.51 %
Non-fee-based 66,756 — —
59,762 — — Total
advice solutions $ 297,150 278
0.38 % $ 284,522 282 0.40
% Other balance-based fees (1,4) 392,191 52 0.05 % 410,443 55 0.05
% Other (5) 11
10
Total asset
management and administration fees
$ 755
$ 851 (1)
Beginning in the first quarter of 2019, a change was made to move
CTFs from other balance-based fees. Prior periods have been recast
to reflect this change. (2) Includes Schwab ETF OneSourceTM. (3)
Advice solutions include managed portfolios, specialized
strategies, and customized investment advice such as Schwab Private
ClientTM, Schwab Managed PortfoliosTM, Managed Account Select®,
Schwab Advisor Network®, Windhaven® Strategies, ThomasPartners®
Strategies, Schwab Index Advantage® advised retirement plan
balances, Schwab Intelligent Portfolios®, Institutional Intelligent
Portfolios®, and Schwab Intelligent Portfolios PremiumTM; as well
as legacy non-fee advice solutions including Schwab Advisor Source
and certain retirement plan balances. Average client assets for
advice solutions may also include the asset balances contained in
the mutual fund and/or ETF categories listed above. For the total
end of period view, please see the Monthly Activity Report. (4)
Includes various asset-related fees, such as trust fees, 401(k)
recordkeeping fees, and mutual fund clearing fees and other service
fees. (5) Includes miscellaneous service and transaction fees
relating to mutual funds and ETFs that are not balance-based.
THE CHARLES SCHWAB CORPORATION
Growth in Client Assets and Accounts
(Unaudited)
Q1-19 % Change
2019 2018 vs. vs. First Fourth
Third Second First (In billions, at quarter end,
except as noted) Q1-18 Q4-18 Quarter Quarter
Quarter Quarter Quarter
Assets in client
accounts Schwab One®, certain cash equivalents and bank
deposits 13 % (5 )% $ 247.0 $ 261.2 $ 239.5 $ 228.2 $ 219.4
Proprietary mutual funds (Schwab Funds® and Laudus Funds®) and CTFs
Money market funds (1) 10 % 4 % 159.7 153.5 128.5 134.2 145.0
Equity and bond funds and CTFs (2,3) 8 % 13 % 106.2
94.3 107.4 102.1
98.7 Total proprietary mutual funds and CTFs 9 % 7 %
265.9 247.8 235.9 236.3
243.7 Mutual Fund Marketplace® (4) Mutual Fund
OneSource® and other non-transaction fee funds (12 )% 8 % 195.1
180.5 212.6 212.5 221.6 Mutual fund clearing services 2 % 11 %
182.7 164.4 182.2 175.3 178.3 Other third-party mutual funds 6 % 13
% 737.2 650.4 740.1
716.1 693.4 Total Mutual Fund
Marketplace 2 % 12 % 1,115.0 995.3
1,134.9 1,103.9 1,093.3
Total mutual fund assets 3 % 11 % 1,380.9
1,243.1 1,370.8 1,340.2
1,337.0 Exchange-traded funds (ETFs) Proprietary ETFs (3) 29
% 17 % 134.7 115.2 125.2 114.8 104.5 Schwab ETF OneSource™ (4) 177
% 170 % 82.5 30.6 33.3 30.8 29.8 Other third-party ETFs (3 )% (2 )%
303.7 309.9 338.6
322.1 314.7 Total ETF assets 16 % 14 %
520.9 455.7 497.1 467.7
449.0 Equity and other securities (2) 7 % 13 %
1,131.3 1,005.4 1,186.7 1,106.2 1,060.6 Fixed income securities 25
% 6 % 324.1 306.1 290.4 275.1 258.8 Margin loans outstanding (3 )%
(3 )% (18.8 ) (19.3 ) (20.8 ) (20.4 )
(19.4 )
Total client assets 8 % 10 %
$
3,585.4 $ 3,252.2
$ 3,563.7 $ 3,397.0
$ 3,305.4 Client assets by
business Investor Services 8 % 11 % $ 1,886.7 $ 1,701.7 $
1,876.9 $ 1,784.8 $ 1,740.8 Advisor Services 9 % 10 %
1,698.7 1,550.5 1,686.8
1,612.2 1,564.6
Total client assets 8 %
10 %
$ 3,585.4 $
3,252.2 $ 3,563.7
$ 3,397.0 $ 3,305.4
Net growth in assets in client accounts (for the
quarter ended)
Net new assets by business Investor Services
(5) N/M 2 % $ 29.2 $ 28.7 $ 27.8 $ 13.7 $ (50.8 ) Advisor Services
(30 )% (15 )% 22.5 26.6 25.7
30.2 32.0
Total net new
assets N/M (7 )%
$ 51.7
$ 55.3 $ 53.5
$ 43.9 $ (18.8
) Net market gains (losses) N/M N/M 281.5
(366.8 ) 113.2 47.7 (37.6
)
Net growth (decline) N/M N/M
$ 333.2
$ (311.5 ) $
166.7 $ 91.6
$ (56.4 ) New brokerage accounts (in
thousands, for the quarter ended) (13 )% 2 % 386 380 369 384 443
Client accounts (in thousands) Active brokerage accounts (6)
7 % 2 % 11,787 11,593 11,423 11,202 11,005 Banking accounts 6 % —
1,300 1,302 1,283 1,250 1,221 Corporate retirement plan
participants 6 % 2 % 1,684 1,655
1,627 1,599 1,594
(1)
Total client assets in purchased money
market funds are located at:
https://www.aboutschwab.com/investor-relations.
(2) Beginning in the first quarter of 2019, a change was made to
move CTFs from equity and other securities. Prior periods have been
recast to reflect this change. (3) Includes balances held on and
off the Schwab platform. As of March 31, 2019, off-platform equity
and bond funds, CTFs, and ETFs were $11.8 billion, $4.4 billion,
and $36.3 billion, respectively. (4) Excludes all proprietary
mutual funds and ETFs. (5) Second quarter of 2018 includes outflows
of $9.5 billion from certain mutual fund clearing services clients.
First quarter of 2018 includes outflows of $84.4 billion from
certain mutual fund clearing services clients. (6) In September
2018, the definition of active brokerage accounts was standardized
across all account types as accounts with activity within the
preceding 270 days. This change increased active accounts by
approximately 63,000.
N/M Not meaningful.
The Charles Schwab Corporation Monthly
Activity Report For March 2019
2018
2019
Change
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Mo.
Yr.
Market Indices (at month end) Dow Jones Industrial Average
24,103 24,163 24,416 24,271 25,415 25,965 26,458 25,116 25,538
23,327 25,000 25,916 25,929 — 8 % Nasdaq Composite 7,063 7,066
7,442 7,510 7,672 8,110 8,046 7,306 7,331 6,635 7,282 7,533 7,729 3
% 9 % Standard & Poor’s 500 2,641 2,648 2,705 2,718 2,816 2,902
2,914 2,712 2,760 2,507 2,704 2,784 2,834 2 % 7 %
Client
Assets (in billions of dollars) Beginning Client Assets 3,328.8
3,305.4 3,312.1 3,378.1 3,397.0 3,447.9 3,555.9 3,563.7 3,388.1
3,431.9 3,252.2 3,447.7 3,533.0 Net New Assets (1) 20.2 0.4 19.4
24.1 16.3 20.8 16.4 14.9 15.6 24.8 15.1 18.3 18.3 — (9 )% Net
Market Gains (Losses) (43.6 ) 6.3 46.6
(5.2 ) 64.6 57.2 (8.6 )
(190.5 ) 28.2 (204.5 ) 180.4
67.0 34.1 Total Client Assets (at month end)
3,305.4 3,312.1 3,378.1
3,397.0 3,477.9 3,555.9
3,563.7 3,388.1 3,431.9
3,252.2 3,447.7 3,533.0 3,585.4
1 % 8 % Core Net New Assets (2) 25.6 9.9 19.4 24.1 16.3 20.8 16.4
14.9 15.6 24.8 15.1 18.3 18.3 — (29 )% Receiving Ongoing Advisory
Services (at month end) Investor Services 273.2 274.7 279.1 280.0
287.0 292.0 292.7 280.3 284.7 272.4 286.9 294.2 298.4 1 % 9 %
Advisor Services (3) 1,444.4 1,451.6 1,478.0 1,488.7 1,525.5
1,555.3 1,559.2 1,485.8 1,510.1 1,436.1 1,514.2 1,551.6 1,572.8 1 %
9 %
Client Accounts (at month end, in thousands) Active
Brokerage Accounts (4) 11,005 11,081 11,145 11,202 11,243 11,310
11,423 11,479 11,529 11,593 11,653 11,712 11,787 1 % 7 % Banking
Accounts (5) 1,221 1,230 1,240 1,250 1,262 1,274 1,283 1,289 1,297
1,302 1,312 1,313 1,300 (1 )% 6 % Corporate Retirement Plan
Participants 1,594 1,599 1,599 1,599 1,611 1,621 1,627 1,634 1,639
1,655 1,679 1,685 1,684 — 6 %
Client Activity New Brokerage
Accounts (in thousands) 140 141 122 121 118 132 119 133 115 132 131
115 140 22 % — Inbound Calls (in thousands) 2,145 2,034 1,852 1,814
1,849 1,964 1,715 1,976 1,681 1,839 1,924 1,742 1,882 8 % (12 )%
Web Logins (in thousands) 58,906 55,980 56,234 56,491 57,137 62,797
53,923 59,261 54,654 53,920 64,563 60,121 63,692 6 % 8 % Client
Cash as a Percentage of Client Assets (6) 11.0 % 10.9 % 10.6 % 10.7
% 10.5 % 10.4 % 10.3 % 11.1 % 11.2 % 12.8 % 11.7 % 11.5 % 11.3 %
(20) bp 30 bp
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (7, 8) (in millions of dollars)
Large Capitalization Stock (158 ) 410 953 981 486 918 311 308 331
717 1,343 1,109 1,045 Small / Mid Capitalization Stock 130 359 753
1,195 768 (186 ) 151 (1,344 ) (456 ) (1,414 ) 1,329 638 302
International 1,546 809 372 (498 ) (529 ) 186 (88 ) (109 ) (418 )
(2,163 ) 2,212 1,086 1,274 Specialized 326 122 (19 ) 383 520 (245 )
73 (914 ) (397 ) (2,105 ) 124 609 750 Hybrid 529 (541 ) (241 ) (288
) (548 ) (678 ) (324 ) (1,313 ) (1,248 ) (2,985 ) (321 ) (309 )
(357 ) Taxable Bond 2,117 1,661 1,002 928 879 965 1,371 (351 ) (836
) (4,342 ) 3,956 2,871 1,923 Tax-Free Bond 247 (113 ) 449 588 306
559 262 (591 ) (407 ) (409 ) 1,184 1,111 1,133
Net Buy (Sell)
Activity (in millions of dollars) Mutual Funds (7) 1,976 (36 )
(88 ) 555 (522 ) (1,936 ) (1,538 ) (5,734 ) (7,955 ) (21,372 )
6,740 2,312 1,850 Exchange-Traded Funds (8) 2,761 2,743 3,357 2,734
2,404 3,455 3,294 1,420 4,524 8,671 3,087 4,803 4,220 Money Market
Funds (9,100 ) (4,156 ) (2,245 ) (4,919 ) (4,801 ) 704 (1,933 )
2,546 8,515 13,548 4,944 (1,577 ) 1,785
Average Interest-Earning Assets (9)
(in millions of dollars)
241,049 239,833 242,584 249,432
254,211 259,137 261,741 264,156 265,648
274,913 277,068 270,718 272,727
1 % 13 % (1) April and March 2018 include
outflows of $9.5 billion and $5.4 billion, respectively, from
certain mutual fund clearing services clients. (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) In September 2018, the definition of active brokerage
accounts was standardized across all account types as accounts with
activity within the preceding 270 days. This change increased
active accounts by approximately 63,000. (5) In March 2019, banking
accounts were reduced by approximately 23,000 as a result of
inactive account closures. (6) Schwab One®, certain cash
equivalents, bank deposits, and money market fund balances as a
percentage of total client assets. (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. (9) Represents average total interest-earning
assets on the company’s balance sheet.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190415005169/en/
MEDIA:Mayura HooperCharles SchwabPhone:
415-667-1525INVESTORS/ANALYSTS:Rich FowlerCharles
SchwabPhone: 415-667-1841
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