Revenues Grow 5% to $2.7 Billion, Net Income
Rises 3% to $951 Million, Both Third Quarter Records
Core Net New Assets Total $56.6 Billion,
Representing a 7% Annualized Growth Rate
The Charles Schwab Corporation announced today that its net
income for the third quarter of 2019 was $951 million, up 3% from
$923 million for the third quarter of 2018. Net income for the nine
months ended September 30, 2019 was $2.9 billion, up 11% from the
year-earlier period. The company’s financial results for the third
quarter and first nine months of 2019 include severance charges
described below.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20191015005428/en/
Three Months Ended September
30,
%
Nine Months Ended September
30,
%
Financial Highlights
2019
2018
Change
2019
2018
Change
Net revenues (in millions)
$
2,711
$
2,579
5%
$
8,115
$
7,463
9%
Net income (in millions)
$
951
$
923
3%
$
2,852
$
2,572
11%
Diluted earnings per common share
$
.70
$
.65
8%
$
2.05
$
1.79
15%
Pre-tax profit margin
45.6
%
47.3
%
46.0
%
44.9
%
Return on average common stockholders’
equity (annualized)
20
%
20
%
20
%
19
%
EPS impact of $62 million in severance
charges related to position eliminations (1)
$
(.04
)
—
$
(.04
)
—
Note: All per-share results are
rounded to the nearest cent, based on weighted-average diluted
common shares outstanding.
(1)
The pre-tax severance charges
related to position eliminations, which reduced earnings per share
by $.04, are included in Compensation and benefits expense.
CEO Walt Bettinger said, “As we remain faithful to our “Through
Clients’ Eyes” strategy, investors continue to reward us with
strong business growth. Our contemporary full-service model helps
us remain a trusted partner as clients navigate an environment that
has only grown more cloudy in recent months. The equity markets
have shown noteworthy durability – the S&P 500 remained up
nearly 20% for the year as of quarter-end. Concerns persist,
however, regarding global trade and a generally softening economic
outlook. The Federal Reserve has moved forward with expected
mid-cycle easing, cutting short-term interest rates 25 bps in both
July and September, and long-term rates have also shown significant
declines. Against this backdrop, clients brought us $56.6 billion
in core net new assets, a third quarter record, which brings our
year-to-date total to $145.5 billion, representing a 6% annualized
organic growth rate. In addition, we attracted 363,000 new
brokerage accounts in the quarter, helping raise active brokerage
accounts to 12.1 million, up 6% year-over-year. Client demand for
help and guidance continued to grow, with assets receiving ongoing
advisory services reaching nearly $2.0 trillion at quarter end, up
7%. Assets in digital advisory solutions grew even faster, rising
20% to $43.0 billion at the end of September. Overall, our client
assets totaled a record $3.77 trillion at quarter end, up 6%.”
“Our commitment to challenge the status quo and disrupt the
industry on behalf of clients endures through all environments,”
Mr. Bettinger added. “Most recently, we eliminated online trade
commissions for stocks, ETFs, and options listed on U.S. or
Canadian exchanges, a move that represents another significant
investment in bringing ever greater value to our clients. This
action is consistent with the principles on which our company was
founded, helping realize Chuck Schwab’s vision of making investing
accessible to all. We also continue to extend our products and
platforms, including the recent launch of three new fixed-income
ETFs. In support of our independent advisors, we’ve made
enhancements to Institutional Intelligent Portfolios® including a
paperless account conversion feature making it simpler than ever to
incorporate automated investing into their practices, while freeing
up time to spend with investors and scale their businesses.
Additionally, on July 25th, we announced an agreement to acquire
certain assets of USAA’s Investment Management Company, with
closing targeted for the middle of next year. We are honored to
have the opportunity to serve USAA members as their exclusive
wealth management and brokerage provider, and are looking forward
to exploring a new growth opportunity via the multi-year referral
agreement included in this transaction.”
Mr. Bettinger concluded, “Schwab’s ‘Virtuous Cycle’ is renewed
by bold steps like our recent price cuts, reflecting our belief
that investors will entrust us with more business as we do right by
them. We are acting from a position of strength – both financial
and competitive – which allows us to take these steps with
confidence, knowing we are able to push forward as we choose, not
as the current environment might dictate.”
CFO Peter Crawford commented, “Our continued success with
clients and full-service model enabled us to deliver third quarter
revenues of $2.7 billion, up 5% year-over-year. Net interest
revenue rose 7% from a year ago to $1.6 billion, largely a result
of generally higher investment yields and higher client cash
allocations. Growing client balances in purchased money market
funds, advisory solutions, and other third-party mutual funds and
ETFs pushed asset management and administration fees to $825
million, increasing 2% year-over-year. A pick-up in trading volumes
was more than offset by a decline in average revenue per trade,
bringing trading revenue to $172 million, down 2% from a year ago.
Turning to expenses, our reported total of $1.5 billion includes
$62 million in severance charges associated with our decision to
eliminate positions spanning approximately 3% of our workforce, as
we work to ensure we remain properly positioned to serve clients
through what has become a more challenging environment. These
charges contributed roughly half of our 8% year-over-year expense
growth. Ongoing expenses remained in line with management
expectations and we were able to report a pre-tax profit margin of
45.6% – our sixth consecutive quarter of at least 45%.”
Mr. Crawford added, “Consistent with the evolution of the Schwab
story to include both business growth and meaningful capital
returns, we repurchased 19.9 million shares for approximately $770
million during the third quarter. We have repurchased more than 49
million shares for $2 billion under our current $4 billion
authorization. Our expanding client base and related increases in
their cash balances drove modest organic growth in our balance
sheet during the third quarter, with consolidated assets increasing
$2.7 billion sequentially to $279 billion at September 30th. Our
preliminary Tier 1 Leverage Ratio ended the quarter at 7.3%,
slightly above our operating objective of 6.75%-7.00%; our capital
management in coming quarters will incorporate preparations for the
$1.8 billion USAA transaction next year. With a 20% return on
equity for the quarter and year-to-date, we remain well-positioned
to drive strong profitable growth into the future through a
combination of sustained business momentum, thoughtful expense
management, and a healthy balance sheet.”
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 our decision
to reduce online trade commissions for U.S. and Canadian-listed
equities, ETFs, and options to $0, was posted on October 1,
2019.
Forward-Looking Statements
This press release contains forward-looking statements relating
to business growth; enhancements to products and platforms; the
company’s acquisition of certain assets of USAA’s Investment
Management Company (IMCO), including timing of closing and entering
into a referral agreement; financial and competitive strength;
capital returns to stockholders; growth in the client base, client
accounts and assets; cash balances; Tier 1 Leverage Ratio operating
objective; profitable growth; expense management; and the balance
sheet. 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 and enhanced products,
services, and capabilities, as well as implement infrastructure, in
a timely and successful manner; client use of the company’s
advisory solutions and other products and services; client
sensitivity to rates; failure of the parties to satisfy the closing
conditions in the USAA IMCO purchase agreement in a timely manner
or at all, including regulatory approvals and the implementation of
conversion plans; capital and liquidity needs and management; level
of client assets, including cash balances; the company’s ability to
manage expenses; 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 365 offices and 12.1
million active brokerage accounts, 1.7 million corporate retirement
plan participants, 1.4 million banking accounts, and $3.77 trillion
in client assets as of September 30, 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 September
30,
Nine Months Ended September
30,
2019
2018
2019
2018
Net Revenues
Interest revenue
$
1,892
$
1,755
$
5,817
$
4,766
Interest expense
(261
)
(228
)
(896
)
(569
)
Net interest revenue
1,631
1,527
4,921
4,197
Asset management and administration
fees
825
809
2,366
2,474
Trading revenue
172
176
531
557
Other
83
67
297
235
Total net revenues
2,711
2,579
8,115
7,463
Expenses Excluding Interest
Compensation and benefits
857
737
2,514
2,252
Professional services
168
164
516
476
Occupancy and equipment
144
124
408
368
Advertising and market development
71
70
217
220
Communications
63
59
187
179
Depreciation and amortization
88
78
255
226
Regulatory fees and assessments
30
57
92
158
Other
54
71
190
232
Total expenses excluding interest
1,475
1,360
4,379
4,111
Income before taxes on income
1,236
1,219
3,736
3,352
Taxes on income
285
296
884
780
Net Income
951
923
2,852
2,572
Preferred stock dividends and other
38
38
127
128
Net Income Available to Common
Stockholders
$
913
$
885
$
2,725
$
2,444
Weighted-Average Common Shares
Outstanding:
Basic
1,300
1,351
1,320
1,349
Diluted
1,308
1,364
1,329
1,363
Earnings Per Common Shares
Outstanding:
Basic
$
.70
$
.66
$
2.06
$
1.81
Diluted
$
.70
$
.65
$
2.05
$
1.79
THE CHARLES SCHWAB
CORPORATION
Financial and Operating
Highlights
(Unaudited)
Q3-19 %
change
2019
2018
vs.
vs.
Third
Second
First
Fourth
Third
(In millions, except per share amounts and
as noted)
Q3-18
Q2-19
Quarter
Quarter
Quarter
Quarter
Quarter
Net Revenues
Net interest revenue
7
%
1
%
$
1,631
$
1,609
$
1,681
$
1,626
$
1,527
Asset management and administration
fees
2
%
5
%
825
786
755
755
809
Trading revenue
(2
)%
(1
)%
172
174
185
206
176
Other
24
%
(26
)%
83
112
102
82
67
Total net revenues
5
%
1
%
2,711
2,681
2,723
2,669
2,579
Expenses Excluding Interest
Compensation and benefits
16
%
6
%
857
807
850
805
737
Professional services
2
%
(6
)%
168
178
170
178
164
Occupancy and equipment
16
%
8
%
144
133
131
128
124
Advertising and market development
1
%
(8
)%
71
77
69
93
70
Communications
7
%
2
%
63
62
62
63
59
Depreciation and amortization
13
%
5
%
88
84
83
80
78
Regulatory fees and assessments
(47
)%
—
30
30
32
31
57
Other
(24
)%
(27
)%
54
74
62
81
71
Total expenses excluding interest
8
%
2
%
1,475
1,445
1,459
1,459
1,360
Income before taxes on income
1
%
—
1,236
1,236
1,264
1,210
1,219
Taxes on income
(4
)%
(5
)%
285
299
300
275
296
Net Income
3
%
1
%
$
951
$
937
$
964
$
935
$
923
Preferred stock dividends and other
—
(24
)%
38
50
39
50
38
Net Income Available to Common
Stockholders
3
%
3
%
$
913
$
887
$
925
$
885
$
885
Earnings per common share:
Basic
6
%
4
%
$
.70
$
.67
$
.69
$
.66
$
.66
Diluted
8
%
6
%
$
.70
$
.66
$
.69
$
.65
$
.65
Dividends declared per common share
31
%
—
$
.17
$
.17
$
.17
$
.13
$
.13
Weighted-average common shares
outstanding:
Basic
(4
)%
(2
)%
1,300
1,328
1,333
1,343
1,351
Diluted
(4
)%
(2
)%
1,308
1,337
1,344
1,354
1,364
Performance Measures
Pre-tax profit margin
45.6
%
46.1
%
46.4
%
45.3
%
47.3
%
Return on average common stockholders’
equity (annualized) (1)
20
%
19
%
20
%
20
%
20
%
Financial Condition (at quarter
end, in billions)
Cash and cash equivalents
(7
)%
(16
)%
$
20.3
$
24.2
$
32.6
$
27.9
$
21.8
Cash and investments segregated
91
%
15
%
16.2
14.1
13.9
13.6
8.5
Receivables from brokerage clients —
net
(6
)%
(1
)%
21.1
21.4
20.5
21.7
22.4
Available for sale securities
(2
)%
3
%
56.5
54.6
60.0
66.6
57.6
Held to maturity securities
1
%
1
%
140.2
138.3
132.4
144.0
139.0
Bank loans — net
2
%
2
%
16.9
16.6
16.5
16.6
16.6
Total assets
3
%
1
%
279.0
276.3
282.8
296.5
272.1
Bank deposits
(2
)%
—
209.3
208.4
219.5
231.4
213.4
Payables to brokerage clients
28
%
15
%
35.6
31.0
29.7
32.7
27.9
Long-term debt
28
%
—
7.4
7.4
6.8
6.9
5.8
Stockholders’ equity
3
%
—
21.4
21.3
21.6
20.7
20.8
Other
Full-time equivalent employees (at quarter
end, in thousands)
4
%
(3
)%
19.8
20.5
20.0
19.5
19.1
Capital expenditures — purchases of
equipment, office facilities, and property, net (in millions)
22
%
10
%
$
190
$
173
$
181
$
159
$
156
Expenses excluding interest as a
percentage of average client assets (annualized)
0.16
%
0.16
%
0.17
%
0.17
%
0.15
%
Clients’ Daily Average Trades (in
thousands)
Revenue trades (2)
3
%
1
%
395
392
418
466
382
Asset-based trades (3)
(5
)%
(11
)%
123
138
149
188
129
Other trades (4)
16
%
8
%
200
186
210
213
172
Total
5
%
—
718
716
777
867
683
Average Revenue Per Revenue Trade
(2)
(5
)%
—
$
6.94
$
6.94
$
7.19
$
7.13
$
7.27
(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 September
30,
Nine Months Ended September
30,
2019
2018
2019
2018
Average Balance
Interest Revenue/ Expense
Average Yield/ Rate
Average Balance
Interest Revenue/ Expense
Average Yield/ Rate
Average Balance
Interest Revenue/ Expense
Average Yield/ Rate
Average Balance
Interest Revenue/ Expense
Average Yield/ Rate
Interest-earning assets
Cash and cash equivalents
$
22,288
$
123
2.16
%
$
18,623
$
94
1.98
%
$
24,506
$
432
2.33
%
$
16,164
$
217
1.78
%
Cash and investments segregated
16,140
92
2.25
%
10,253
51
1.94
%
14,771
264
2.36
%
12,002
149
1.64
%
Broker-related receivables
216
2
2.34
%
307
1
1.94
%
225
4
2.21
%
324
4
1.62
%
Receivables from brokerage clients
19,438
205
4.13
%
20,224
217
4.19
%
19,279
636
4.35
%
19,629
600
4.03
%
Available for sale securities (1)
53,487
366
2.71
%
55,283
328
2.34
%
58,738
1,203
2.72
%
52,797
859
2.16
%
Held to maturity securities
136,880
906
2.63
%
137,065
887
2.57
%
134,031
2,721
2.70
%
129,490
2,420
2.48
%
Bank loans
16,724
146
3.49
%
16,579
142
3.43
%
16,621
443
3.56
%
16,522
410
3.31
%
Total interest-earning assets
265,173
1,840
2.75
%
258,334
1,720
2.63
%
268,171
5,703
2.82
%
246,928
4,659
2.50
%
Other interest revenue
52
35
114
107
Total interest-earning assets
$
265,173
$
1,892
2.82
%
$
258,334
$
1,755
2.69
%
$
268,171
$
5,817
2.88
%
$
246,928
$
4,766
2.56
%
Funding sources
Bank deposits
$
208,592
$
166
0.32
%
$
208,666
$
158
0.30
%
$
213,089
$
616
0.39
%
$
193,010
$
339
0.23
%
Payables to brokerage clients
25,080
21
0.33
%
20,595
16
0.31
%
23,443
68
0.39
%
21,591
37
0.23
%
Short-term borrowings (2)
21
—
2.48
%
—
—
—
18
—
2.49
%
4,488
54
1.59
%
Long-term debt
7,425
67
3.58
%
5,790
51
3.52
%
7,122
192
3.59
%
5,053
131
3.46
%
Total interest-bearing liabilities
241,118
254
0.42
%
235,051
225
0.38
%
243,672
876
0.48
%
224,142
561
0.33
%
Non-interest-bearing funding sources
24,055
23,283
24,499
22,786
Other interest expense
7
3
20
8
Total funding sources
$
265,173
$
261
0.39
%
$
258,334
$
228
0.36
%
$
268,171
$
896
0.45
%
$
246,928
$
569
0.31
%
Net interest revenue
$
1,631
2.43
%
$
1,527
2.33
%
$
4,921
2.43
%
$
4,197
2.25
%
(1)
Amounts have been calculated based on
amortized cost.
(2)
Interest revenue or expense was less than
$500,000 in the period or periods presented.
THE CHARLES SCHWAB
CORPORATION
Asset Management and
Administration Fees Information
(In millions)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2019
2018
2019
2018
Average Client Assets
Revenue
Average Fee
Average Client Assets
Revenue
Average Fee
Average Client Assets
Revenue
Average Fee
Average Client Assets
Revenue
Average Fee
Schwab money market funds
$
177,892
$
133
0.30
%
$
130,202
$
122
0.37
%
$
166,053
$
378
0.30
%
$
142,177
$
451
0.42
%
Schwab equity and bond funds, ETFs,
and
collective trust funds (CTFs) (1)
274,005
75
0.11
%
235,148
78
0.13
%
260,034
219
0.11
%
221,818
228
0.14
%
Mutual Fund OneSource® and other non-
transaction fee funds
192,409
153
0.32
%
209,560
171
0.32
%
190,847
452
0.32
%
216,699
524
0.32
%
Other third-party mutual funds and ETFs
(2)
486,285
84
0.07
%
342,316
75
0.09
%
469,901
238
0.07
%
329,033
216
0.09
%
Total mutual funds, ETFs, and CTFs (3)
$
1,130,591
445
0.16
%
$
917,226
446
0.19
%
$
1,086,835
1,287
0.16
%
$
909,727
1,419
0.21
%
Advice solutions (3)
Fee-based
$
251,591
305
0.48
%
$
234,338
294
0.50
%
$
241,678
878
0.49
%
$
228,326
859
0.50
%
Non-fee-based
71,195
—
—
65,146
—
—
69,136
—
—
62,377
—
—
Total advice solutions
$
322,786
305
0.37
%
$
299,484
294
0.39
%
$
310,814
878
0.38
%
$
290,703
859
0.40
%
Other balance-based fees (1,4)
421,241
56
0.05
%
384,038
52
0.05
%
407,762
162
0.05
%
388,836
158
0.05
%
Other (5)
19
17
39
38
Total asset management and
administration fees
$
825
$
809
$
2,366
$
2,474
(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)
Q3-19 %
Change
2019
2018
vs.
vs.
Third
Second
First
Fourth
Third
(In billions, at quarter end, except as
noted)
Q3-18
Q2-19
Quarter
Quarter
Quarter
Quarter
Quarter
Assets in client accounts
Schwab One®, certain cash equivalents and
bank deposits
1
%
2
%
$
242.9
$
237.3
$
247.0
$
261.2
$
239.5
Proprietary mutual funds (Schwab Funds®
and Laudus Funds®) and CTFs
Money market funds (1)
46
%
11
%
187.0
168.1
159.7
153.5
128.5
Equity and bond funds and CTFs (2,3)
5
%
1
%
112.4
110.9
106.2
94.3
107.4
Total proprietary mutual funds and
CTFs
27
%
7
%
299.4
279.0
265.9
247.8
235.9
Mutual Fund Marketplace® (4)
Mutual Fund OneSource® and other
non-transaction fee funds
(8
)%
(2
)%
194.7
197.8
195.1
180.5
212.6
Mutual fund clearing services
8
%
2
%
197.2
192.9
182.7
164.4
182.2
Other third-party mutual funds
5
%
1
%
776.8
767.3
737.2
650.4
740.1
Total Mutual Fund Marketplace
3
%
1
%
1,168.7
1,158.0
1,115.0
995.3
1,134.9
Total mutual fund assets
7
%
2
%
1,468.1
1,437.0
1,380.9
1,243.1
1,370.8
Exchange-traded funds (ETFs)
Proprietary ETFs (3)
20
%
5
%
150.8
143.6
134.7
115.2
125.2
Schwab ETF OneSource™ (4)
183
%
7
%
94.1
88.1
82.5
30.6
33.3
Other third-party ETFs
(5
)%
2
%
321.6
315.7
303.7
309.9
338.6
Total ETF assets
14
%
3
%
566.5
547.4
520.9
455.7
497.1
Equity and other securities (2)
(1
)%
1
%
1,178.0
1,168.3
1,131.3
1,005.4
1,186.7
Fixed income securities
14
%
—
332.3
332.1
324.1
306.1
290.4
Margin loans outstanding
(7
)%
(2
)%
(19.4
)
(19.7
)
(18.8
)
(19.3
)
(20.8
)
Total client assets
6
%
2
%
$
3,768.4
$
3,702.4
$
3,585.4
$
3,252.2
$
3,563.7
Client assets by business
Investor Services
5
%
2
%
$
1,978.7
$
1,946.5
$
1,886.7
$
1,701.7
$
1,876.9
Advisor Services
6
%
2
%
1,789.7
1,755.9
1,698.7
1,550.5
1,686.8
Total client assets
6
%
2
%
$
3,768.4
$
3,702.4
$
3,585.4
$
3,252.2
$
3,563.7
Net growth in assets in client
accounts (for the quarter ended)
Net new assets by business
Investor Services
(9
)%
42
%
$
25.4
$
17.9
$
29.2
$
28.7
$
27.8
Advisor Services
21
%
62
%
31.2
19.3
22.5
26.6
25.7
Total net new assets
6
%
52
%
$
56.6
$
37.2
$
51.7
$
55.3
$
53.5
Net market gains (losses)
(92
)%
(88
)%
9.4
79.8
281.5
(366.8
)
113.2
Net growth (decline)
(60
)%
(44
)%
$
66.0
$
117.0
$
333.2
$
(311.5
)
$
166.7
New brokerage accounts (in
thousands, for the quarter ended)
(2
)%
(6
)%
363
386
386
380
369
Client accounts (in thousands)
Active brokerage accounts (5)
6
%
1
%
12,118
11,967
11,787
11,593
11,423
Banking accounts
6
%
2
%
1,361
1,336
1,300
1,302
1,283
Corporate retirement plan participants
6
%
1
%
1,718
1,698
1,684
1,655
1,627
(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 September 30, 2019, off-platform equity and
bond funds, CTFs, and ETFs were $12.6 billion, $4.8 billion, and
$39.9 billion, respectively.
(4)
Excludes all proprietary mutual funds and
ETFs.
(5)
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.
The Charles Schwab Corporation
Monthly Activity Report For September 2019
2018
2019
Change
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Mo.
Yr.
Market Indices (at month end)
Dow Jones Industrial Average
26,458
25,116
25,538
23,327
25,000
25,916
25,929
26,593
24,815
26,600
26,864
26,403
26,917
2
%
2
%
Nasdaq Composite
8,046
7,306
7,331
6,635
7,282
7,533
7,729
8,095
7,453
8,006
8,175
7,963
7,999
—
(1
)%
Standard & Poor’s 500
2,914
2,712
2,760
2,507
2,704
2,784
2,834
2,946
2,752
2,942
2,980
2,926
2,977
2
%
2
%
Client Assets (in billions of
dollars)
Beginning Client Assets
3,555.9
3,563.7
3,388.1
3,431.9
3,252.2
3,447.7
3,533.0
3,585.4
3,668.5
3,530.6
3,702.4
3,746.7
3,716.5
Net New Assets
16.4
14.9
15.6
24.8
15.1
18.3
18.3
(0.3
)
17.3
20.2
19.3
19.9
17.4
(13
)%
6
%
Net Market Gains (Losses)
(8.6
)
(190.5
)
28.2
(204.5
)
180.4
67.0
34.1
83.4
(155.2
)
151.6
25.0
(50.1
)
34.5
Total Client Assets (at month end)
3,563.7
3,388.1
3,431.9
3,252.2
3,447.7
3,533.0
3,585.4
3,668.5
3,530.6
3,702.4
3,746.7
3,716.5
3,768.4
1
%
6
%
Core Net New Assets (1)
16.4
14.9
15.6
24.8
15.1
18.3
18.3
(0.3
)
17.3
20.2
19.3
19.9
17.4
(13
)%
6
%
Receiving Ongoing Advisory Services (at
month end)
Investor Services
292.7
280.3
284.7
272.4
286.9
294.2
298.4
305.7
298.5
311.6
314.8
314.2
318.5
1
%
9
%
Advisor Services (2)
1,559.2
1,485.8
1,510.1
1,436.1
1,514.2
1,551.6
1,572.8
1,608.0
1,554.6
1,626.6
1,646.1
1,635.7
1,659.4
1
%
6
%
Client Accounts (at month end, in
thousands)
Active Brokerage Accounts (3)
11,423
11,479
11,529
11,593
11,653
11,712
11,787
11,870
11,929
11,967
12,026
12,085
12,118
—
6
%
Banking Accounts (4)
1,283
1,289
1,297
1,302
1,312
1,313
1,300
1,310
1,323
1,336
1,352
1,361
1,361
—
6
%
Corporate Retirement Plan Participants
1,627
1,634
1,639
1,655
1,679
1,685
1,684
1,690
1,699
1,698
1,701
1,711
1,718
—
6
%
Client Activity
New Brokerage Accounts (in thousands)
119
133
115
132
131
115
140
147
123
116
129
126
108
(14
)%
(9
)%
Inbound Calls (in thousands)
1,715
1,976
1,681
1,839
1,924
1,742
1,882
1,966
1,671
1,595
1,773
1,759
1,570
(11
)%
(8
)%
Web Logins (in thousands)
53,923
59,261
54,654
53,920
64,563
60,121
63,692
65,669
61,522
60,824
65,809
63,928
63,530
(1
)%
18
%
Client Cash as a Percentage of Client
Assets (5)
10.3
%
11.1
%
11.2
%
12.8
%
11.7
%
11.5
%
11.3
%
10.9
%
11.3
%
10.9
%
11.0
%
11.3
%
11.4
%
10 bp
110 bp
Mutual Fund and Exchange-Traded
Fund
Net Buys (Sells) (6, 7) (in
millions of dollars)
Large Capitalization Stock
311
308
331
717
1,343
1,109
1,045
980
1,114
206
717
328
23
Small / Mid Capitalization Stock
151
(1,344
)
(456
)
(1,414
)
1,329
638
302
136
(190
)
18
10
(374
)
(212
)
International
(88
)
(109
)
(418
)
(2,163
)
2,212
1,086
1,274
863
(100
)
225
744
(1,390
)
(355
)
Specialized
73
(914
)
(397
)
(2,105
)
124
609
750
(109
)
(440
)
341
418
353
583
Hybrid
(324
)
(1,313
)
(1,248
)
(2,985
)
(321
)
(309
)
(357
)
(228
)
(316
)
(181
)
(366
)
(569
)
(372
)
Taxable Bond
1,371
(351
)
(836
)
(4,342
)
3,956
2,871
1,923
3,029
1,821
2,378
3,806
2,725
2,935
Tax-Free Bond
262
(591
)
(407
)
(409
)
1,184
1,111
1,133
760
1,057
682
960
760
593
Net Buy (Sell) Activity (in
millions of dollars)
Mutual Funds (6)
(1,538
)
(5,734
)
(7,955
)
(21,372
)
6,740
2,312
1,850
1,860
86
7
2,151
(1,281
)
(573
)
Exchange-Traded Funds (7)
3,294
1,420
4,524
8,671
3,087
4,803
4,220
3,571
2,860
3,662
4,138
3,114
3,768
Money Market Funds
(1,933
)
2,546
8,515
13,548
4,944
(1,577
)
1,785
(2,097
)
5,067
4,570
6,143
6,068
5,833
Average Interest-Earning Assets
(8)
(in millions of dollars)
261,741
264,156
265,648
274,913
277,068
270,718
272,727
270,308
263,718
262,759
263,993
265,005
266,430
1
%
2
%
(1)
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.
(2)
Excludes Retirement Business Services.
(3)
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.
(4)
In March 2019, banking accounts were
reduced by approximately 23,000 as a result of inactive account
closures.
(5)
Schwab One®, certain cash equivalents,
bank deposits, and money market fund balances as a percentage of
total client assets.
(6)
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.
(7)
Represents the principal value of client
ETF transactions handled by Schwab, including transactions in
proprietary ETFs.
(8)
Represents average total interest-earning
assets on the company’s balance sheet.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191015005428/en/
MEDIA: Mayura Hooper Charles Schwab Phone:
415-667-1525
INVESTORS/ANALYSTS: Rich Fowler Charles Schwab Phone:
415-667-1841
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