WESTLAKE, Texas--(BUSINESS WIRE)--The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of May 2023 include:
- Core net new assets brought to the company by new and existing clients totaled $20.7 billion. Net new assets excluding mutual fund clearing totaled $24.5 billion.
- Total client assets were $7.65 trillion as of month-end May, up 5% from May 2022 and flat compared to April 2023.
- Client cash as a percentage of assets was 11.5% as of month-end May, compared with 12.0% in May 2022 and 11.3% in April 2023.
Commentary from the CFO
Peter Crawford, Managing Director and Chief Financial Officer, provides additional perspective on client cash realignment trends and second quarter revenue expectations: https://www.aboutschwab.com/cfo-commentary.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 34.3 million active brokerage accounts, 2.4 million corporate retirement plan participants, 1.8 million banking accounts, and $7.65 trillion in client assets as of May 31, 2023. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiaries, Charles Schwab & Co., Inc., TD Ameritrade, Inc., and TD Ameritrade Clearing, Inc., (members SIPC, https://www.sipc.org), and their affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com.
TD Ameritrade, Inc. and TD Ameritrade Clearing, Inc. are separate but affiliated companies and subsidiaries of TD Ameritrade Holding Corporation. TD Ameritrade Holding Corporation is a wholly owned subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank.
| The Charles Schwab Corporation Monthly Activity Report For May 2023 | ||||||||||||||||||||||||||||||
2022 |
2023 |
Change | ||||||||||||||||||||||||||||
| May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Mo. | Yr. | ||||||||||||||||
| Market Indices (at month end) | ||||||||||||||||||||||||||||||
| Dow Jones Industrial Average® | 32,990 |
|
30,775 |
|
32,845 |
|
31,510 |
|
28,726 |
|
32,733 |
|
34,590 |
|
33,147 |
|
34,086 |
|
32,657 |
|
33,274 |
|
34,098 |
|
32,908 |
|
(3%) |
- |
||
| Nasdaq Composite® | 12,081 |
|
11,029 |
|
12,391 |
|
11,816 |
|
10,576 |
|
10,988 |
|
11,468 |
|
10,466 |
|
11,585 |
|
11,456 |
|
12,222 |
|
12,227 |
|
12,935 |
|
6% |
7% |
||
| Standard & Poor’s® 500 | 4,132 |
|
3,785 |
|
4,130 |
|
3,955 |
|
3,586 |
|
3,872 |
|
4,080 |
|
3,840 |
|
4,077 |
|
3,970 |
|
4,109 |
|
4,169 |
|
4,180 |
|
- |
1% |
||
| Client Assets (in billions of dollars) |
|
|
||||||||||||||||||||||||||||
| Beginning Client Assets | 7,284.4 |
|
7,301.7 |
|
6,832.5 |
|
7,304.8 |
|
7,127.6 |
|
6,644.2 |
|
7,004.6 |
|
7,320.6 |
|
7,049.8 |
|
7,480.6 |
|
7,380.2 |
|
7,580.0 |
|
7,631.5 |
|
|
|
||
| Net New Assets (1) | 32.8 |
|
19.8 |
|
31.5 |
|
43.3 |
|
39.8 |
|
42.0 |
|
33.1 |
|
53.3 |
|
36.1 |
|
41.7 |
|
72.9 |
|
13.6 |
|
24.6 |
|
81% |
(25%) |
||
| Net Market (Losses) Gains | (15.5 |
) |
(489.0 |
) |
440.8 |
|
(220.5 |
) |
(523.2 |
) |
318.4 |
|
282.9 |
|
(324.1 |
) |
394.7 |
|
(142.1 |
) |
126.9 |
|
37.9 |
|
(5.9 |
) |
|
|
||
| Total Client Assets (at month end) | 7,301.7 |
|
6,832.5 |
|
7,304.8 |
|
7,127.6 |
|
6,644.2 |
|
7,004.6 |
|
7,320.6 |
|
7,049.8 |
|
7,480.6 |
|
7,380.2 |
|
7,580.0 |
|
7,631.5 |
|
7,650.2 |
|
- |
5% |
||
| Core Net New Assets (2) | 32.8 |
|
40.6 |
|
31.5 |
|
43.3 |
|
39.8 |
|
42.0 |
|
33.1 |
|
53.3 |
|
36.1 |
|
41.7 |
|
53.9 |
|
(2.3 |
) |
20.7 |
|
N/M |
(37%) |
||
| Receiving Ongoing Advisory Services (at month end) |
|
|
||||||||||||||||||||||||||||
| Investor Services | 513.0 |
|
483.8 |
|
514.8 |
|
499.2 |
|
466.6 |
|
487.3 |
|
514.0 |
|
499.8 |
|
524.6 |
|
515.5 |
|
526.2 |
|
530.7 |
|
526.3 |
|
(1%) |
3% |
||
| Advisor Services (3) | 3,213.8 |
|
3,040.4 |
|
3,222.5 |
|
3,150.5 |
|
2,950.9 |
|
3,106.0 |
|
3,270.5 |
|
3,173.4 |
|
3,345.4 |
|
3,289.6 |
|
3,369.3 |
|
3,394.9 |
|
3,377.8 |
|
(1%) |
5% |
||
| Client Accounts (at month end, in thousands) |
|
|
||||||||||||||||||||||||||||
| Active Brokerage Accounts (4) | 33,822 |
|
33,896 |
|
33,934 |
|
33,984 |
|
33,875 |
|
33,896 |
|
33,636 |
|
33,758 |
|
33,878 |
|
34,010 |
|
34,120 |
|
34,248 |
|
34,311 |
|
- |
1% |
||
| Banking Accounts | 1,658 |
|
1,669 |
|
1,680 |
|
1,690 |
|
1,696 |
|
1,706 |
|
1,705 |
|
1,716 |
|
1,729 |
|
1,733 |
|
1,746 |
|
1,757 |
|
1,768 |
|
1% |
7% |
||
| Corporate Retirement Plan Participants | 2,275 |
|
2,275 |
|
2,267 |
|
2,285 |
|
2,305 |
|
2,322 |
|
2,336 |
|
2,351 |
|
2,369 |
|
2,384 |
|
2,379 |
|
2,391 |
|
2,401 |
|
- |
6% |
||
| Client Activity |
|
|
||||||||||||||||||||||||||||
| New Brokerage Accounts (in thousands) | 323 |
|
305 |
|
278 |
|
332 |
|
287 |
|
298 |
|
303 |
|
330 |
|
344 |
|
320 |
|
378 |
|
331 |
|
314 |
|
(5%) |
(3%) |
||
| Client Cash as a Percentage of Client Assets (5) | 12.0 |
% |
12.8 |
% |
12.0 |
% |
12.1 |
% |
12.9 |
% |
12.2 |
% |
11.5 |
% |
12.3 |
% |
11.6 |
% |
11.7 |
% |
11.6 |
% |
11.3 |
% |
11.5 |
% |
20 bp |
(50) bp |
||
| Derivative Trades as a Percentage of Total Trades | 22.6 |
% |
22.3 |
% |
24.2 |
% |
23.3 |
% |
23.6 |
% |
24.1 |
% |
24.6 |
% |
23.2 |
% |
23.0 |
% |
23.5 |
% |
22.8 |
% |
23.4 |
% |
23.5 |
% |
10 bp |
90 bp |
||
| Selected Average Balances (in millions of dollars) |
|
|
||||||||||||||||||||||||||||
| Average Interest-Earning Assets (6) | 620,157 |
|
614,100 |
|
605,751 |
|
586,154 |
|
568,351 |
|
552,631 |
|
527,019 |
|
520,100 |
|
512,893 |
|
503,122 |
|
497,627 |
|
493,215 |
|
483,438 |
|
(2%) |
(22%) |
||
| Average Margin Balances | 78,841 |
|
74,577 |
|
72,177 |
|
72,855 |
|
73,224 |
|
69,188 |
|
66,011 |
|
64,759 |
|
60,211 |
|
60,575 |
|
60,848 |
|
60,338 |
|
60,250 |
|
- |
(24%) |
||
| Average Bank Deposit Account Balances (7) | 154,669 |
|
155,306 |
|
154,542 |
|
148,427 |
|
141,198 |
|
136,036 |
|
130,479 |
|
126,953 |
|
122,387 |
|
115,816 |
|
109,392 |
|
104,775 |
|
103,149 |
|
(2%) |
(33%) |
||
| Mutual Fund and Exchange-Traded Fund |
|
|
||||||||||||||||||||||||||||
| Net Buys (Sells) (8,9) (in millions of dollars) |
|
|
||||||||||||||||||||||||||||
| Equities | 1,889 |
|
(1,586 |
) |
5,589 |
|
10,465 |
|
(2,662 |
) |
3,984 |
|
3,777 |
|
(1,837 |
) |
7,236 |
|
5,850 |
|
(3,234 |
) |
1,126 |
|
(1,366 |
) |
|
|
||
| Hybrid | (1,718 |
) |
(1,054 |
) |
(2,041 |
) |
(783 |
) |
(938 |
) |
(1,380 |
) |
(2,052 |
) |
(1,595 |
) |
(433 |
) |
47 |
|
(1,641 |
) |
(462 |
) |
(889 |
) |
|
|
||
| Bonds | (6,121 |
) |
(5,631 |
) |
729 |
|
(141 |
) |
(5,801 |
) |
(7,218 |
) |
(3,721 |
) |
(3,260 |
) |
5,646 |
|
4,281 |
|
6,158 |
|
2,575 |
|
2,029 |
|
|
|
||
| Net Buy (Sell) Activity (in millions of dollars) |
|
|
||||||||||||||||||||||||||||
| Mutual Funds (8) | (20,761 |
) |
(16,258 |
) |
(8,674 |
) |
(7,117 |
) |
(15,200 |
) |
(18,473 |
) |
(17,143 |
) |
(21,851 |
) |
552 |
|
(2,338 |
) |
(7,423 |
) |
(4,904 |
) |
(7,157 |
) |
|
|
||
| Exchange-Traded Funds (9) | 14,811 |
|
7,987 |
|
12,951 |
|
16,658 |
|
5,799 |
|
13,859 |
|
15,147 |
|
15,159 |
|
11,897 |
|
12,516 |
|
8,706 |
|
8,143 |
|
6,931 |
|
|
|
||
| Money Market Funds | 7,106 |
|
11,544 |
|
13,711 |
|
19,702 |
|
17,018 |
|
21,542 |
|
16,929 |
|
27,778 |
|
24,285 |
|
23,347 |
|
27,106 |
|
6,291 |
|
15,256 |
|
|
|
||
| Note: Certain supplemental details related to the information above can be found at: https://www.aboutschwab.com/financial-reports. | ||
(1) |
Unless otherwise noted, differences between net new assets and core net new assets are net flows from off-platform Schwab Bank Retail Certificates of Deposit (CDs) - including March 2023 which reflects inflows of $19.0 billion from off-platform Schwab Bank Retail CDs issued year-to-date through March 31, 2023. April 2023 also includes an inflow of $12.0 billion from a mutual fund clearing services client. June 2022 includes an outflow of $20.8 billion from a mutual fund clearing services client. | |
(2) |
Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $10 billion) relating to a specific client, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods. | |
(3) |
Excludes Retirement Business Services. | |
(4) |
November 2022 includes the company-initiated closure of approximately 350 thousand low-balance accounts. September 2022 includes the company-initiated closure of approximately 152 thousand low-balance accounts. | |
(5) |
Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets. | |
(6) |
Represents average total interest-earning assets on the company's balance sheet. November 2022 includes the impact of transferring certain investment securities from the available for sale category to the held-to-maturity category. | |
(7) |
Represents average clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions. | |
(8) |
Represents the principal value of client mutual fund transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to Investment Managers. Excludes money market fund transactions. | |
(9) |
Represents the principal value of client ETF transactions handled by Schwab, including transactions in proprietary ETFs. | |
| N/M - Not meaningful. Percentage changes greater than 200% are presented as not meaningful. |
