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

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Charles Schwab (SCHW - Free Report) released its activity report for April 2021. Total client assets were $7.34 trillion, up 4% from March 2021 and 94% from April 2020. Client assets receiving ongoing advisory services were $3.62 trillion, up 4% from the prior month and 85% year over year.

Net new assets were $37.2 billion, down 41% from $62.6 billion recorded in March but up significantly from $15.3 billion recorded at the end of the prior-year month.

Schwab’s average interest-earning assets of $527.2 billion increased 1% from March and 49% year over year. Average margin balances of $72.9 billion were up 2% from the previous month and up significantly from the year-ago month. Average bank deposit account balances totaled $162.4 billion, down 2% from the previous month.

Schwab opened 609,000 new brokerage accounts in April 2021, down 28% from the prior month. In the year-earlier month, the company opened 201,000 new accounts.

Schwab’s active brokerage accounts totaled 31.9 million at the end of April, down marginally from the previous month but up significantly from the year-ago month. Further, clients’ banking accounts were 1.6 million, down 3% from March 2021 but up 9% from April 2020. The number of retirement plan participants was 2.1 million, up 1% sequentially and 25% year over year.

Schwab’s acquisitions (including the buyout of TD Ameritrade) have reinforced its position as a leading brokerage player and will be accretive to earnings. Further, by offering commission-free trading, the company has been able to witness a rise in client assets and brokerage accounts, which, in turn, is improving its market share.

So far this year, shares of the company have gained 38.1% compared with 32.1% growth recorded by the industry.

Currently, Schwab carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Brokers

Interactive Brokers Group (IBKR - Free Report) released the Electronic Brokerage segment’s performance metrics for April 2021. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported client Daily Average Revenue Trades (DARTs) of 2,181,000, jumping 27% from April 2020 but down 27% from March 2021.

Tradeweb Markets Inc. (TW - Free Report) reported total trading volume of $19.3 trillion in April 2021. Average daily volumes were $896.8 billion, up 17.5% year over year.

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

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