The Charles Schwab Corporation released its Monthly Activity
Report today. Company highlights for the month of November 2023
include:
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the full release here:
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- Core net new assets brought to the company by new and existing
clients totaled $21.7 billion.
- Total client assets were $8.18 trillion as of month-end
November, up 12% from November 2022 and up 7% compared to October
2023.
- Transactional sweep cash ended November 2023 at $402.9 billion,
representing an increase of $5.0 billion versus the prior month –
the largest monthly build in transactional sweep cash since March
2022. Excluding bank deposit account balance activity, clients
added over $7 billion across our balance sheet cash solutions
during the month.
- While the company’s ‘through the cycle’ financial model
continues to deliver against an evolving backdrop, lower
transactional cash levels, along with softer client trading volumes
and subdued securities lending activity, is expected to result in
full-year 2023 revenue declining by 9.5% to 10.0% versus the
previous year.
Forward-Looking Statements
This press release contains a forward-looking statement relating
to full-year revenue. This forward-looking statement reflects
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 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 34.7 million active brokerage
accounts, 5.2 million workplace plan participant accounts, 1.8
million banking accounts, and $8.18 trillion in client assets as of
November 30, 2023. 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
November 2023
2022
2023
Change Nov Dec
Jan Feb Mar
Apr May Jun
Jul Aug Sep
Oct Nov Mo.
Yr. Market Indices (at month
end) Dow Jones Industrial Average®
34,590
33,147
34,086
32,657
33,274
34,098
32,908
34,408
35,560
34,722
33,508
33,053
35,951
9
%
4
%
Nasdaq Composite®
11,468
10,466
11,585
11,456
12,222
12,227
12,935
13,788
14,346
14,035
13,219
12,851
14,226
11
%
24
%
Standard & Poor’s® 500
4,080
3,840
4,077
3,970
4,109
4,169
4,180
4,450
4,589
4,508
4,288
4,194
4,568
9
%
12
%
Client Assets (in billions of dollars) Beginning Client
Assets
7,004.6
7,320.6
7,049.8
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
Net New Assets (1)
33.1
53.3
36.1
41.7
72.9
13.6
24.6
33.8
12.9
8.1
27.2
5.0
19.2
N/M
(42
%)
Net Market Gains (Losses)
282.9
(324.1
)
394.7
(142.1
)
126.9
37.9
(5.9
)
331.8
212.3
(154.4
)
(297.4
)
(176.1
)
508.0
Total Client Assets (at month end)
7,320.6
7,049.8
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
7
%
12
%
Core Net New Assets (2)
33.1
53.3
36.1
41.7
53.9
(2.3
)
20.7
33.8
13.7
4.9
27.1
11.3
21.7
92
%
(34
%)
Receiving Ongoing Advisory Services (at month end) Investor
Services
514.0
499.8
524.6
515.5
526.2
530.7
526.3
547.5
560.6
552.2
533.0
522.2
557.0
7
%
8
%
Advisor Services (3)
3,270.5
3,173.4
3,345.4
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
7
%
10
%
Client Accounts (at month end, in thousands) Active
Brokerage Accounts (4)
33,636
33,758
33,878
34,010
34,120
34,248
34,311
34,382
34,434
34,440
34,540
34,571
34,672
-
3
%
Banking Accounts
1,705
1,716
1,729
1,733
1,746
1,757
1,768
1,781
1,792
1,798
1,799
1,812
1,825
1
%
7
%
Workplace Plan Participant Accounts (5)
4,810
4,807
4,817
4,839
4,845
4,869
4,962
5,003
5,030
5,037
5,141
5,212
5,212
-
8
%
Client Activity New Brokerage Accounts (in thousands)
303
330
344
320
378
331
314
315
303
311
280
284
286
1
%
(6
%)
Client Cash as a Percentage of Client Assets (6,7)
11.5
%
12.2
%
11.5
%
11.6
%
11.2
%
10.8
%
10.9
%
10.5
%
10.2
%
10.4
%
10.8
%
11.2
%
10.7
%
(50) bp (80) bp Derivative Trades as a Percentage of Total Trades
24.6
%
23.2
%
23.0
%
23.5
%
22.8
%
23.4
%
23.5
%
23.9
%
23.0
%
24.4
%
24.2
%
23.2
%
23.1
%
(10) bp (150) bp
Selected Average Balances (in millions of
dollars) Average Interest-Earning Assets (8)
527,019
520,100
512,893
503,122
497,627
493,215
483,438
479,752
466,659
449,483
444,864
438,522
439,118
-
(17
%)
Average Margin Balances
66,011
64,759
60,211
60,575
60,848
60,338
60,250
61,543
63,040
64,226
64,014
63,946
61,502
(4
%)
(7
%)
Average Bank Deposit Account Balances (9)
130,479
126,953
122,387
115,816
109,392
104,775
103,149
102,917
102,566
101,928
100,404
97,893
94,991
(3
%)
(27
%)
Mutual Fund and Exchange-Traded Fund Net Buys (Sells)
(10,11) (in millions of dollars) Equities
3,777
(1,837
)
7,236
5,850
(3,234
)
1,126
(1,366
)
9,190
7,423
(278
)
675
(3,039
)
6,099
Hybrid
(2,052
)
(1,595
)
(433
)
47
(1,641
)
(462
)
(889
)
(903
)
(407
)
(1,037
)
(828
)
(1,457
)
(1,466
)
Bonds
(3,721
)
(3,260
)
5,646
4,281
6,158
2,575
2,029
3,302
2,515
4,696
2,723
1,094
255
Net Buy (Sell) Activity (in millions of dollars) Mutual
Funds (10)
(17,143
)
(21,851
)
552
(2,338
)
(7,423
)
(4,904
)
(7,157
)
(4,485
)
(3,333
)
(6,476
)
(5,853
)
(12,245
)
(9,267
)
Exchange-Traded Funds (11)
15,147
15,159
11,897
12,516
8,706
8,143
6,931
16,074
12,864
9,857
8,423
8,843
14,155
Money Market Funds
16,929
27,778
24,285
23,347
27,106
6,291
15,256
9,112
7,911
16,869
13,388
16,976
11,670
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. November
2023 also includes an outflow of $5.4 billion from an international
relationship. October 2023 also includes an outflow of $6.2 billion
from an international relationship. September 2023 also includes an
outflow of $0.8 billion from an international relationship. April
2023 also includes an inflow of $12.0 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, and activity from off-platform Schwab Bank
Retail CDs. These flows may span multiple reporting periods.
(3)
Excludes Retirement Business Services.
(4)
November 2022 includes the
Company-initiated closure of approximately 350 thousand low-balance
accounts.
(5)
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.
(6)
Schwab One®, certain cash equivalents,
bank deposits, third-party bank deposit accounts, and money market
fund balances as a percentage of total client assets.
(7)
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.
(8)
Represents average total interest-earning
assets on the Company's balance sheet. November 2022 includes the
impact of transferring certain investment securities from the
available for sale category to the held-to-maturity category.
(9)
Represents average clients’ uninvested
cash sweep account balances held in deposit accounts at third-party
financial institutions.
(10)
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.
(11)
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231214573591/en/
MEDIA: Mayura Hooper Charles Schwab Phone:
415-667-1525
INVESTORS/ANALYSTS: Jeff Edwards Charles Schwab Phone:
415-667-1524
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