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Schwab (SCHW) January Core Net New Assets, Client Assets Rise
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Charles Schwab (SCHW - Free Report) released its monthly activity report for January 2023. Core net new assets were $36.1 billion in the reported month, down 32% sequentially and up 7% year over year. This year-over-year improvement was driven by upbeat market performance.
Total client assets were $7.48 trillion, up 6% from December 2022 but down 4% from January 2022. Likewise, client assets receiving ongoing advisory services were $3.87 trillion, rising 5% from the prior month but decreasing 1% year over year.
Schwab’s average interest-earning assets of $512.9 billion in the reported month declined 1% from December 2022 and 18% year over year. Average margin balances were $60.2 billion, decreasing 7% from the previous month and 31% on a year-over-year basis. Average bank deposit account balances totaled $122.4 billion, down 4% sequentially and 22% from January 2022.
Schwab opened 344,000 new brokerage accounts in January 2023, rising 4% sequentially but falling 19% from the year-earlier month.
Schwab’s active brokerage accounts totaled 33.9 million at the end of January 2023, which increased marginally on a sequential basis and 2% from the year-ago month. Clients’ banking accounts were 1.7 million, up 1% on a sequential basis and 6% from January 2022. The number of corporate retirement plan participants was up 1% from the prior-month level and 7% year over year to 2.4 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 4.6%, underperforming the 6.9% rise of the industry.
Interactive Brokers Group, Inc. (IBKR - Free Report) released the Electronic Brokerage segment’s performance metrics for January 2023. The segment, which deals with clearance and settlement of trades for individual and institutional clients globally, reported an increase in client Daily Average Revenue Trades (DARTs) on a sequential basis but a decline on a year-over-year basis.
IBKR’s total client DARTs were 1,988,000, increasing 14% from the December 2022 level but down 24% year over year. On an annualized basis, IBKR recorded Cleared Average DARTs per customer account of 211,000. The metric increased 12% sequentially but was down 38% from the prior-year period.
LPL Financial Holdings Inc.’s (LPLA - Free Report) total brokerage and advisory assets were $1.16 trillion at the end of January 2023, increasing 4.9% from the prior month and 0.8% year over year.
The rise in LPLA’s assets balance from the December 2022 level was mainly driven by upbeat market performance. Of LPLA’s total assets, brokerage assets were $549.7 billion and advisory assets totaled $615.2 billion.
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Schwab (SCHW) January Core Net New Assets, Client Assets Rise
Charles Schwab (SCHW - Free Report) released its monthly activity report for January 2023. Core net new assets were $36.1 billion in the reported month, down 32% sequentially and up 7% year over year. This year-over-year improvement was driven by upbeat market performance.
Total client assets were $7.48 trillion, up 6% from December 2022 but down 4% from January 2022. Likewise, client assets receiving ongoing advisory services were $3.87 trillion, rising 5% from the prior month but decreasing 1% year over year.
Schwab’s average interest-earning assets of $512.9 billion in the reported month declined 1% from December 2022 and 18% year over year. Average margin balances were $60.2 billion, decreasing 7% from the previous month and 31% on a year-over-year basis. Average bank deposit account balances totaled $122.4 billion, down 4% sequentially and 22% from January 2022.
Schwab opened 344,000 new brokerage accounts in January 2023, rising 4% sequentially but falling 19% from the year-earlier month.
Schwab’s active brokerage accounts totaled 33.9 million at the end of January 2023, which increased marginally on a sequential basis and 2% from the year-ago month. Clients’ banking accounts were 1.7 million, up 1% on a sequential basis and 6% from January 2022. The number of corporate retirement plan participants was up 1% from the prior-month level and 7% year over year to 2.4 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 4.6%, underperforming the 6.9% rise of the industry.
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Currently, Schwab carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Interactive Brokers Group, Inc. (IBKR - Free Report) released the Electronic Brokerage segment’s performance metrics for January 2023. The segment, which deals with clearance and settlement of trades for individual and institutional clients globally, reported an increase in client Daily Average Revenue Trades (DARTs) on a sequential basis but a decline on a year-over-year basis.
IBKR’s total client DARTs were 1,988,000, increasing 14% from the December 2022 level but down 24% year over year. On an annualized basis, IBKR recorded Cleared Average DARTs per customer account of 211,000. The metric increased 12% sequentially but was down 38% from the prior-year period.
LPL Financial Holdings Inc.’s (LPLA - Free Report) total brokerage and advisory assets were $1.16 trillion at the end of January 2023, increasing 4.9% from the prior month and 0.8% year over year.
The rise in LPLA’s assets balance from the December 2022 level was mainly driven by upbeat market performance. Of LPLA’s total assets, brokerage assets were $549.7 billion and advisory assets totaled $615.2 billion.