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Schwab (SCHW) February Client Assets Fall Q/Q on Markets Woes
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Charles Schwab (SCHW - Free Report) released its activity report for February 2022. Total client assets were $7.69 trillion, down 2% from January 2022 but up 11% from February 2021. The decline from the prior month was mainly due to unfavorable equity market performance.
Client assets receiving ongoing advisory services were $3.88 trillion, down 1% from the prior month but up 14% year over year. Schwab’s core net new assets were $40.6 billion in the reported month. This reflected an increase of 21% from the previous month but a fall of 21% year over year.
Schwab’s average interest-earning assets of $629 billion rose 1% from January 2022 and 22% year over year. Average margin balances were $84.4 billion, falling 3% from the previous month but growing 22% on a year-over-year basis. Average bank deposit account balances totaled $153.8 billion, down 2% from the previous month and 8% from February 2021.
Schwab opened 356,000 new brokerage accounts in February 2022, declining 16% sequentially and 71% from the year-earlier month.
Schwab’s active brokerage accounts totaled 33.4 million at the end of February 2022, in line on a sequential basis and up 6% from the year-ago month. Clients’ banking accounts were 1.6 million, up 1% sequentially and 6% from February 2021. Likewise, the number of corporate retirement plan participants was up 1% from the prior-month level and 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 rallied 25.5% against a 6.4% fall of the industry.
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 February 2022. The segment (dealing with the clearance and settlement of trades for individual and institutional clients globally) reported a fall in client Daily Average Revenue Trades (DARTs) both on a sequential and a year-over-year basis.
IBKR’s total client DARTs were 2,499,000, down 5% from the January 2022 level and 32% year over year. On an annualized basis, the company recorded Cleared Average DARTs per customer account of 319.
Tradeweb Markets reported total trading volume of $22.6 trillion in February 2022. Average daily volumes (ADV) were $1.17 trillion, up 10.7% year over year.
In the reported month, TW set new ADV records in both U.S. and European government bond trading, as well as fully electronic U.S. High Grade credit and emerging market swaps.
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Schwab (SCHW) February Client Assets Fall Q/Q on Markets Woes
Charles Schwab (SCHW - Free Report) released its activity report for February 2022. Total client assets were $7.69 trillion, down 2% from January 2022 but up 11% from February 2021. The decline from the prior month was mainly due to unfavorable equity market performance.
Client assets receiving ongoing advisory services were $3.88 trillion, down 1% from the prior month but up 14% year over year. Schwab’s core net new assets were $40.6 billion in the reported month. This reflected an increase of 21% from the previous month but a fall of 21% year over year.
Schwab’s average interest-earning assets of $629 billion rose 1% from January 2022 and 22% year over year. Average margin balances were $84.4 billion, falling 3% from the previous month but growing 22% on a year-over-year basis. Average bank deposit account balances totaled $153.8 billion, down 2% from the previous month and 8% from February 2021.
Schwab opened 356,000 new brokerage accounts in February 2022, declining 16% sequentially and 71% from the year-earlier month.
Schwab’s active brokerage accounts totaled 33.4 million at the end of February 2022, in line on a sequential basis and up 6% from the year-ago month. Clients’ banking accounts were 1.6 million, up 1% sequentially and 6% from February 2021. Likewise, the number of corporate retirement plan participants was up 1% from the prior-month level and 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 rallied 25.5% against a 6.4% fall 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.
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 February 2022. The segment (dealing with the clearance and settlement of trades for individual and institutional clients globally) reported a fall in client Daily Average Revenue Trades (DARTs) both on a sequential and a year-over-year basis.
IBKR’s total client DARTs were 2,499,000, down 5% from the January 2022 level and 32% year over year. On an annualized basis, the company recorded Cleared Average DARTs per customer account of 319.
Tradeweb Markets reported total trading volume of $22.6 trillion in February 2022. Average daily volumes (ADV) were $1.17 trillion, up 10.7% year over year.
In the reported month, TW set new ADV records in both U.S. and European government bond trading, as well as fully electronic U.S. High Grade credit and emerging market swaps.