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Schwab's (SCHW) July Metrics Improve as Markets Appreciate

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Charles Schwab (SCHW - Free Report) released its activity report for July 2021. Total client assets were $7.64 trillion, up 1% from June 2021 and 79% from July 2020. Client assets receiving ongoing advisory services were $3.7884 trillion, up 1% from the prior month and 74% year over year.

Net new assets were $44.3 billion during the reported month. This was up 2% from June 2021-level and grew substantially from the end of the prior-year month level of $11.4 billion.
 
Schwab’s average interest-earning assets of $546.6 billion rose 2% from June 2021 and 44% year over year. Average margin balances of $79.9 billion increased 2% from the previous month and were up significantly year over year. Average bank deposit account balances totaled $151.3 billion, down 6% from the previous month.

Schwab opened 402,000 new brokerage accounts in July 2021, down 19% from the prior month but up 95% from the year-earlier month.

Schwab’s active brokerage accounts totaled 32.4 million at the end of July, relatively stable sequentially and up significantly from the year-ago month. Further, clients’ banking accounts were 1.6 million, almost stable on a sequential basis and up 7% from July 2020. Likewise, the number of retirement plan participants was on par with the prior month level and grew 26% year over year to 2.2 million.

Schwab’s acquisitions have reinforced its position as a leading brokerage player and will be accretive to earnings. 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 39.6% compared with 39.5% growth recorded by the industry.
 

Zacks Investment Research
Image Source: Zacks Investment Research

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 Brokers

Interactive Brokers Group (IBKR - Free Report) released the Electronic Brokerage segment’s performance metrics for July 2021. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported a 32 year-over-year rise in client Daily Average Revenue Trades to 2,363,000.

Tradeweb Markets Inc. (TW - Free Report) reported total trading volume of $20.6 trillion in July 2021. Average daily volumes were $972.2 billion, up 34.2% year over year.

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