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Schwab's (SCHW) August Metrics Improve on Favorable Markets
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Charles Schwab (SCHW - Free Report) released its activity report for August 2021. Total client assets were $7.84 trillion, up 3% from July 2021 and 75% from August 2020. Client assets receiving ongoing advisory services were $3.88 trillion, up 2% from the prior month and 71% year over year.
Net new assets were $51.8 billion during the reported month. This reflected an increase of 17% from the previous month. In the prior-year comparable month, net new assets were $20 billion.
Schwab’s average interest-earning assets of $552.4 billion rose 1% from July 2021 and 44% year over year. Average margin balances were $79.8 billion, almost stable compared to the previous month. On a year-over-year basis, the figure increased significantly. Average bank deposit account balances totaled $150.9 billion, down marginally from the previous month.
Schwab opened 402,000 new brokerage accounts in August 2021, unchanged from July 2021 but up 99% from the year-earlier month.
Schwab’s active brokerage accounts totaled 32.5 million at the end of August 2021, relatively stable sequentially but up significantly from the year-ago month. Clients’ banking accounts were 1.6 million, up 1% on a sequential basis and 7% from August 2020. Likewise, the number of corporate retirement plan participants was up 1% from the prior month level and grew 28% year over year to 2.2 million.
The acquisitions undertaken by Schwab have reinforced its position as a leading brokerage player and are expected to prove 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 34.2% compared with 33.5% growth of the industry.
Interactive Brokers Group (IBKR - Free Report) released the Electronic Brokerage segment’s performance metrics for August 2021. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported a 24% year-over-year rise in client Daily Average Revenue Trades to 2,170,000.
Tradeweb Markets Inc. (TW - Free Report) reported total trading volume of $19.8 trillion in August 2021. Average daily volumes were $900.4 billion, up 20.6% year over year.
LPL Financial Holdings Inc. (LPLA - Free Report) is likely to report monthly figures soon.
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Schwab's (SCHW) August Metrics Improve on Favorable Markets
Charles Schwab (SCHW - Free Report) released its activity report for August 2021. Total client assets were $7.84 trillion, up 3% from July 2021 and 75% from August 2020. Client assets receiving ongoing advisory services were $3.88 trillion, up 2% from the prior month and 71% year over year.
Net new assets were $51.8 billion during the reported month. This reflected an increase of 17% from the previous month. In the prior-year comparable month, net new assets were $20 billion.
Schwab’s average interest-earning assets of $552.4 billion rose 1% from July 2021 and 44% year over year. Average margin balances were $79.8 billion, almost stable compared to the previous month. On a year-over-year basis, the figure increased significantly. Average bank deposit account balances totaled $150.9 billion, down marginally from the previous month.
Schwab opened 402,000 new brokerage accounts in August 2021, unchanged from July 2021 but up 99% from the year-earlier month.
Schwab’s active brokerage accounts totaled 32.5 million at the end of August 2021, relatively stable sequentially but up significantly from the year-ago month. Clients’ banking accounts were 1.6 million, up 1% on a sequential basis and 7% from August 2020. Likewise, the number of corporate retirement plan participants was up 1% from the prior month level and grew 28% year over year to 2.2 million.
The acquisitions undertaken by Schwab have reinforced its position as a leading brokerage player and are expected to prove 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 34.2% compared with 33.5% growth of the industry.
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 August 2021. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported a 24% year-over-year rise in client Daily Average Revenue Trades to 2,170,000.
Tradeweb Markets Inc. (TW - Free Report) reported total trading volume of $19.8 trillion in August 2021. Average daily volumes were $900.4 billion, up 20.6% year over year.
LPL Financial Holdings Inc. (LPLA - Free Report) is likely to report monthly figures soon.