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Schwab's (SCHW) November Metrics Improve on Upbeat Markets

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Charles Schwab (SCHW - Free Report) announced its activity report for November 2020. In October, the company concluded the acquisition of TD Ameritrade Holding, leading to the creation of a behemoth in the online brokerage space. Thus, metrics for the reported month includes data for the combined company.

Total client assets for the reported month were $6.42 trillion, up 9% from October 2020 and 63% from November 2019. Client assets receiving ongoing advisory services were $3.17 trillion, up 8% from the prior month and 54% year over year.

Further, net new assets were $32.1 billion, down 98% from the prior month but up 168% from the year-earlier month.

Schwab’s average interest earning assets were $466.7 billion at the end of November 2020, up 6% from October 2020 and 74% year over year. Additionally, average bank deposit account assets totaled $162.3 billion, up 23% from the prior month.

Schwab opened 430,000 new brokerage accounts in the reported month. While this was significantly down from 14.7 million new accounts in October 2020, it surged substantially from 127,000 in November 2019.

Schwab’s active brokerage accounts totaled 29.2 million at November-end, up 1% sequentially and 138% from the year-ago month. Further, clients’ banking accounts were 1.50 million, rising 1% from October 2020 and 9% from November 2019. The number of retirement plan participants was 2.05 million, down 1% sequentially level but up 17% year over year.

Over the past year, Schwab was on acquisition spree. This is expected to strengthen its position as a leading brokerage player and be accretive to earnings. Also, its efforts to offer commission-free trading is leading to higher client assets and a rise in brokerage accounts, which, in turn, will improve market share.

Over the past six months, shares of Schwab have rallied 35%, outperforming 26.9% growth recorded by the industry.



Currently, Schwab sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Brokers

Interactive Brokers Group (IBKR - Free Report) released its Electronic Brokerage segment’s performance metrics for November 2020. The segment reported a substantial surge in Daily Average Revenue Trades (DARTs) on a year-over-year basis. Total client DARTs were 2,290,000, surging 179% from November 2019 and increasing 30% from October 2020.

Tradeweb Markets Inc. (TW - Free Report) reported total trading volume of $18.7 trillion in November 2020. Average daily volumes were $958.7 billion, up 37.2% year over year.

LPL Financial Holdings Inc. (LPLA - Free Report) is likely to come out with November figures soon.

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