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The Charles Schwab Corporation’s (SCHW - Free Report) recently released monthly activity report for Nov 2016 shows an improvement over the year-ago period. Total client assets were $2.73 trillion at the end of the month, up 7% year over year. Further, client assets receiving ongoing advisory services were $1.38 trillion as of Nov 30, 2016, up 8% year over year.
Additionally, average interest earning assets were approximately $207 billion at November end, reflecting 24% surge on a year-over-year basis.
Schwab opened 93,000 new brokerage accounts in Nov 2016, up 22% from the prior-year month. However, net new assets, through both existing and new clients totaled $11.9 billion, down 31% year over year.
Nonetheless, the company’s active brokerage accounts totaled $10.10 million at the end of the month, up 4% from the Nov 2015 level. The client’s banking accounts at the end of November totaled 1.1 million, growing 6% from the prior-year period. Further, the number of retirement plan participants was 1.55 million, which implies an increase of 2% year over year.
The fully automated investment advisory service offered by Schwab is likely to boost its trading revenues, going forward. Also, the flurry of securities trading activities following the Presidential election results should support the company’s trading revenues. However, elevated expenses remain a matter of concern for the company. Moreover, costs related to compensation and regulatory spending will likely keep overall expenses high in the upcoming quarters.
Shares of the company have risen approximately 18.4% year to date, underperforming the 23.3% growth of the Zacks categorized Investment Brokers industry. However, a continued improvement in monthly activity should help it perform better in the quarters ahead.
TD Ameritrade Holding Corporation (AMTD - Free Report) reported $782.2 billion in total client assets for November, up 11% from the year-ago period and 2% from the preceding month. Also, the company came up with average client trades of 540,000 per day, up 23% from the prior-year period as well as the previous month.
E*TRADE Financial Corporation reported a rise in its Daily Average Revenue Trades (DARTs) in the monthly market activity report for Nov 2016. DARTs were 208,420, up 24% from the prior month and 40% on a year-over-year basis.
Interactive Brokers Group, Inc.’s (IBKR - Free Report) total client DARTs were 728,000, up 14% from Nov 2015 and 21% from Oct 2016. Also, total customer accounts were 380,100, up 15% year over year and 1% from the prior month.
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Schwab's (SCHW) November Metrics Show Improvement
The Charles Schwab Corporation’s (SCHW - Free Report) recently released monthly activity report for Nov 2016 shows an improvement over the year-ago period. Total client assets were $2.73 trillion at the end of the month, up 7% year over year. Further, client assets receiving ongoing advisory services were $1.38 trillion as of Nov 30, 2016, up 8% year over year.
Additionally, average interest earning assets were approximately $207 billion at November end, reflecting 24% surge on a year-over-year basis.
Schwab opened 93,000 new brokerage accounts in Nov 2016, up 22% from the prior-year month. However, net new assets, through both existing and new clients totaled $11.9 billion, down 31% year over year.
Nonetheless, the company’s active brokerage accounts totaled $10.10 million at the end of the month, up 4% from the Nov 2015 level. The client’s banking accounts at the end of November totaled 1.1 million, growing 6% from the prior-year period. Further, the number of retirement plan participants was 1.55 million, which implies an increase of 2% year over year.
The fully automated investment advisory service offered by Schwab is likely to boost its trading revenues, going forward. Also, the flurry of securities trading activities following the Presidential election results should support the company’s trading revenues. However, elevated expenses remain a matter of concern for the company. Moreover, costs related to compensation and regulatory spending will likely keep overall expenses high in the upcoming quarters.
Shares of the company have risen approximately 18.4% year to date, underperforming the 23.3% growth of the Zacks categorized Investment Brokers industry. However, a continued improvement in monthly activity should help it perform better in the quarters ahead.
Currently, Schwab carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Investment Brokers
TD Ameritrade Holding Corporation (AMTD - Free Report) reported $782.2 billion in total client assets for November, up 11% from the year-ago period and 2% from the preceding month. Also, the company came up with average client trades of 540,000 per day, up 23% from the prior-year period as well as the previous month.
E*TRADE Financial Corporation reported a rise in its Daily Average Revenue Trades (DARTs) in the monthly market activity report for Nov 2016. DARTs were 208,420, up 24% from the prior month and 40% on a year-over-year basis.
Interactive Brokers Group, Inc.’s (IBKR - Free Report) total client DARTs were 728,000, up 14% from Nov 2015 and 21% from Oct 2016. Also, total customer accounts were 380,100, up 15% year over year and 1% from the prior month.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>.