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Schwab's (SCHW) November Client Assets, Core New Assets Up Y/Y

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Charles Schwab (SCHW - Free Report) released its activity report for November 2021. Total client assets were $7.92 trillion, down 1% from October 2021 but up 23% from November 2020. Client assets receiving ongoing advisory services were $3.92 trillion, down 1% from the prior month but up 23% year over year.

Core net new assets were $45.1 billion in the reported month. This reflected a rise of 23% from the previous month and 40% year over year.

Schwab’s average interest-earning assets of $584.4 billion rose 2% from October 2021 and 25% year over year. Average margin balances were $87.3 billion, growing 4% from the previous month and 62% on a year-over-year basis. Average bank deposit account balances totaled $153.9 billion, down marginally from the previous month and 5% from November 2020.

Schwab opened 448,000 new brokerage accounts in November 2021, increasing 13% sequentially and 4% from the year-earlier month.

Schwab’s active brokerage accounts totaled 32.9 million at the end of November 2021, up marginally on a sequential basis and 13% from the year-ago month. Clients’ banking accounts were 1.6 million, up 1% on a sequential basis and 7% from November 2020. Likewise, the number of corporate retirement plan participants was down 1% from the prior-month level but up 7% year over year to 2.2 million.

Schwab’s inorganic growth efforts have reinforced its position as a leading brokerage player and are expected to be accretive to earnings. By offering commission-free trading, the company has witnessed a rise in client assets and brokerage accounts, which, in turn, is improving its market share.

Over the past year, shares of Schwab have gained 56.3%, outperforming 39.1% rise of the industry.

 

Zacks Investment ResearchImage 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.

Competitive Landscape

A couple of other brokerage firms that have come out with monthly data are Interactive Brokers Group (IBKR - Free Report) and Tradeweb Markets Inc. (TW - Free Report) .

Interactive Brokers’ Electronic Brokerage segment announced performance metrics for November 2021. The segment (that deals with the clearance and settlement of trades for individual and institutional clients globally) reported a surge in client Daily Average Revenue Trades (DARTs) both on a year-over-year and a sequential basis.

IBKR’s total client DARTs were 2,793,000, which grew 22% from November 2020 and 21% from October 2021.

Tradeweb Markets reported total trading volume of $24.2 trillion in November 2021. Average daily volumes were $1.18 trillion, up 22.6% year over year.

Lee Olesky, the CEO of Tradeweb Markets, stated, “November was Tradeweb’s second-busiest month ever, extending our run of more than 12 consecutive months reporting year-over-year ADV growth.”


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