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Schwab (SCHW) October Core Net New Assets, Client Assets Rise
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Charles Schwab (SCHW - Free Report) released its monthly activity report for October 2022. Core net new assets were $42 billion in the reported month, growing 6% sequentially and 14% year over year. This was likely driven by upbeat market performance.
Total client assets were $7 trillion, up 5% from September 2022 but down 12% from October 2021. Likewise, client assets receiving ongoing advisory services were $3.59 trillion, rising 5% from the prior month but decreasing 9% year over year.
Schwab’s average interest-earning assets of $552.6 billion in the reported month declined 3% from September 2022 and 4% year over year. Average margin balances were $69.2 billion, decreasing 6% from the previous month and 17% on a year-over-year basis. Average bank deposit account balances totaled $136 billion, down 4% sequentially and 12% from October 2021.
Schwab opened 298,000 new brokerage accounts in October 2022, rising 4% sequentially but falling 25% from the year-earlier month.
Schwab’s active brokerage accounts totaled 33.9 million at the end of October 2022, which remained stable on a sequential basis but rose 3% from the year-ago month. Clients’ banking accounts were 1.71 million, up 1% sequentially and 7% from October 2021. The number of corporate retirement plan participants was up 1% from the prior-month level and 5% year over year to 2.32 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 is improving its market share.
Over the past six months, shares of Schwab have rallied 19.4%, outperforming the 18.9% rise of the industry.
A couple of other brokerage firms that come out with monthly data are Interactive Brokers Group (IBKR - Free Report) and LPL Financial Holdings Inc. (LPLA - Free Report) .
Interactive Brokers’ Electronic Brokerage segment announced performance metrics for October 2022. The segment (dealing with the clearance and settlement of trades for individual and institutional clients globally) reported relatively stable Daily Average Revenue Trades (DARTs) on a sequential basis.
Total client DARTs for the month were 1,965,000, on par with September 2022 but down 15% from October 2021. On an annualized basis, IBKR recorded Cleared Average DARTs per customer account of 218. The metric grew 1% sequentially and 29% from the prior-year period.
LPL Financial is likely to come out with its monthly activity report in the coming days.
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Schwab (SCHW) October Core Net New Assets, Client Assets Rise
Charles Schwab (SCHW - Free Report) released its monthly activity report for October 2022. Core net new assets were $42 billion in the reported month, growing 6% sequentially and 14% year over year. This was likely driven by upbeat market performance.
Total client assets were $7 trillion, up 5% from September 2022 but down 12% from October 2021. Likewise, client assets receiving ongoing advisory services were $3.59 trillion, rising 5% from the prior month but decreasing 9% year over year.
Schwab’s average interest-earning assets of $552.6 billion in the reported month declined 3% from September 2022 and 4% year over year. Average margin balances were $69.2 billion, decreasing 6% from the previous month and 17% on a year-over-year basis. Average bank deposit account balances totaled $136 billion, down 4% sequentially and 12% from October 2021.
Schwab opened 298,000 new brokerage accounts in October 2022, rising 4% sequentially but falling 25% from the year-earlier month.
Schwab’s active brokerage accounts totaled 33.9 million at the end of October 2022, which remained stable on a sequential basis but rose 3% from the year-ago month. Clients’ banking accounts were 1.71 million, up 1% sequentially and 7% from October 2021. The number of corporate retirement plan participants was up 1% from the prior-month level and 5% year over year to 2.32 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 is improving its market share.
Over the past six months, shares of Schwab have rallied 19.4%, outperforming the 18.9% rise 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 come out with monthly data are Interactive Brokers Group (IBKR - Free Report) and LPL Financial Holdings Inc. (LPLA - Free Report) .
Interactive Brokers’ Electronic Brokerage segment announced performance metrics for October 2022. The segment (dealing with the clearance and settlement of trades for individual and institutional clients globally) reported relatively stable Daily Average Revenue Trades (DARTs) on a sequential basis.
Total client DARTs for the month were 1,965,000, on par with September 2022 but down 15% from October 2021. On an annualized basis, IBKR recorded Cleared Average DARTs per customer account of 218. The metric grew 1% sequentially and 29% from the prior-year period.
LPL Financial is likely to come out with its monthly activity report in the coming days.