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Schwab's (SCHW) February Metrics Improve on Volatile Markets
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Charles Schwab (SCHW - Free Report) released its activity report for the month of February 2021. Total client assets were $6.90 trillion, up 2% from January 2021 and 79% from February 2020.
Client assets receiving ongoing advisory services were $3.4 trillion, up 2% from the prior month and 69% year over year.
Further, net new assets were $37 billion, up 8% from $34.2 billion recorded in January, and 52% from $24.4 billion recorded at the end of the prior-year month.
Schwab’s average interest-earning assets of $514.9 billion declined marginally from January but rose 85% year over year. Additionally, average bank deposit account assets totaled $167 billion, marginally down from the previous month.
Schwab opened 1,211,000 new brokerage accounts in February 2021, up 11% from the prior month. In the year-earlier month, the company reported 159,000 new accounts.
Schwab’s active brokerage accounts totaled 31.5 million at February-end, up 3% sequentially and 152% from the year-ago month. Further, clients’ banking accounts were 1.5 million, rising 2% from January 2021 and 9% from February 2020. The number of retirement plan participants was 2.1 million, up 1% sequentially and 21% year over year.
Schwab’s acquisition of TD Ameritrade in October 2020 led to the creation of a behemoth in the online brokerage space. This along with previous acquisitions has strengthened its position as a leading brokerage player. Further, by offering commission-free trading, Schwab has been able to witness a rise in client assets and brokerage accounts, which, in turn, is improving its market share.
Over the past six months, shares of Schwab have jumped 89.4% outperforming 73.5% growth recorded by the industry.
Performance of Other Brokers
Interactive Brokers Group (IBKR - Free Report) released its Electronic Brokerage segment’s performance metrics for February 2021. The segment reported a substantial surge in Daily Average Revenue Trades (DARTs) for the reported month. Total client DARTs were 3,695,000, surging 175% from February 2020 and 12% from January 2021.
Tradeweb Markets Inc. (TW - Free Report) reported total trading volume of $20.4 trillion in February 2021. Average daily volumes were a record $1.06 trillion, up 19.9% year over year.
Upcoming Report
LPL Financial Holdings Inc. (LPLA - Free Report) is likely to come out with February figures soon.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
Schwab's (SCHW) February Metrics Improve on Volatile Markets
Charles Schwab (SCHW - Free Report) released its activity report for the month of February 2021. Total client assets were $6.90 trillion, up 2% from January 2021 and 79% from February 2020.
Client assets receiving ongoing advisory services were $3.4 trillion, up 2% from the prior month and 69% year over year.
Further, net new assets were $37 billion, up 8% from $34.2 billion recorded in January, and 52% from $24.4 billion recorded at the end of the prior-year month.
Schwab’s average interest-earning assets of $514.9 billion declined marginally from January but rose 85% year over year. Additionally, average bank deposit account assets totaled $167 billion, marginally down from the previous month.
Schwab opened 1,211,000 new brokerage accounts in February 2021, up 11% from the prior month. In the year-earlier month, the company reported 159,000 new accounts.
Schwab’s active brokerage accounts totaled 31.5 million at February-end, up 3% sequentially and 152% from the year-ago month. Further, clients’ banking accounts were 1.5 million, rising 2% from January 2021 and 9% from February 2020. The number of retirement plan participants was 2.1 million, up 1% sequentially and 21% year over year.
Schwab’s acquisition of TD Ameritrade in October 2020 led to the creation of a behemoth in the online brokerage space. This along with previous acquisitions has strengthened its position as a leading brokerage player. Further, by offering commission-free trading, Schwab has been able to witness a rise in client assets and brokerage accounts, which, in turn, is improving its market share.
However, near-zero interest rates and no chance of any increase in the same in the near term remains a major concern for this Zacks Rank #3 (Hold) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past six months, shares of Schwab have jumped 89.4% outperforming 73.5% growth recorded by the industry.
Performance of Other Brokers
Interactive Brokers Group (IBKR - Free Report) released its Electronic Brokerage segment’s performance metrics for February 2021. The segment reported a substantial surge in Daily Average Revenue Trades (DARTs) for the reported month. Total client DARTs were 3,695,000, surging 175% from February 2020 and 12% from January 2021.
Tradeweb Markets Inc. (TW - Free Report) reported total trading volume of $20.4 trillion in February 2021. Average daily volumes were a record $1.06 trillion, up 19.9% year over year.
Upcoming Report
LPL Financial Holdings Inc. (LPLA - Free Report) is likely to come out with February figures soon.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>