The Charles Schwab Corporation released its Monthly Activity
Report today. Company highlights for the month of April 2022
include:
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- Core net new assets brought to the company by new and existing
clients totaled negative $9.2 billion. Net new assets excluding
mutual fund clearing totaled negative $6.5 billion. These flows
reflect client cash disbursements during tax season.
- Total client assets were $7.28 trillion as of month-end April,
down 1% from April 2021 and down 7% compared to March 2022.
- Average interest-earning assets were $636.7 billion in April,
up 21% from April 2021 and down 1% compared to March 2022.
CFO Peter Crawford commented, “Client cash disbursements during
this year’s tax season were the highest we’ve ever seen at Schwab.
These outflows include the impact of client portfolio actions taken
during 2021, a year marked by strong equity market performance and
robust trading activity. Such seasonal activity is distinct from
flows within client accounts rebalancing their cash positions
between daily liquidity and investments such as money market funds.
This rebalancing, or sorting, activity tends to occur as an
extended period of low interest rates shifts into a rising rate
environment and clients refresh their allocations.”
“While the Federal Reserve has taken initial steps to move
interest rates higher thus far in 2022, short rates are just now
approaching the point where we’d expect to see clients start to
rebalance their cash positions,” Mr. Crawford continued. “Assuming
the Fed’s tightening cycle remains consistent with current
forecasts, we believe we could see rebalancing activity begin to
surface before the end of the second quarter. Such actions may lead
to a slight decline in balance sheet assets from current levels
over the next quarter or two (assuming clients don’t meaningfully
shift their investments from equities to cash). As we help clients
navigate this environment, we remain confident that the successful
execution of our 'Through Clients’ Eyes' strategy, coupled with our
all-weather financial model, will support strong long-term growth -
in our client base, and in value for our stockholders.”
Forward-Looking Statements This press release contains
forward-looking statements relating to the rebalancing of client
cash positions; balance sheet growth; and growth in the client base
and stockholder value. Achievement of these expectations, beliefs,
and objectives is subject to risks and uncertainties that could
cause actual results to differ materially from the expressed
expectations.
Important factors that may cause such differences include, but
are not limited to, general market conditions, including equity
valuations, trading activity, and the level of interest rates;
competitive pressures on pricing; client cash sorting; client
sensitivity to rates; the level of client assets, including cash
balances; the migration of bank deposit account balances; capital
and liquidity needs and management; market volatility; the
company’s ability to attract and retain clients and registered
investment advisors and grow those relationships and associated
client assets; the company’s ability to monetize client assets; the
company’s ability to develop and launch new and enhanced products,
services, and capabilities, as well as enhance its infrastructure,
in a timely and successful manner; client use of the company’s
advisory solutions and other products and services; the company’s
ability to support client activity levels and attract and retain
talent; the Ameritrade integration, including expected synergies;
the company’s ability to manage expenses; balance sheet positioning
relative to changes in interest rates; interest earning asset mix
and growth; the scope and duration of the COVID-19 pandemic and
actions taken by governmental authorities to contain the spread of
the virus and the economic impact; and other factors set forth in
the company’s most recent reports on Form 10-K and Form 10-Q.
About Charles Schwab The Charles Schwab Corporation
(NYSE: SCHW) is a leading provider of financial services, with 33.8
million active brokerage accounts, 2.3 million corporate retirement
plan participants, 1.7 million banking accounts, and $7.28 trillion
in client assets as of April 30, 2022. 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 April 2022
2021
2022
Change
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
Mo.
Yr.
Market Indices (at month end) Dow Jones Industrial Average®
33,875
34,529
34,503
34,935
35,361
33,844
35,820
34,484
36,338
35,132
33,893
34,678
32,977
(5
%)
(3
%)
Nasdaq Composite®
13,963
13,749
14,504
14,673
15,259
14,449
15,498
15,538
15,645
14,240
13,751
14,221
12,335
(13
%)
(12
%)
Standard & Poor’s® 500
4,181
4,204
4,298
4,395
4,523
4,308
4,605
4,567
4,766
4,516
4,374
4,530
4,132
(9
%)
(1
%)
Client Assets (in billions of dollars) Beginning Client
Assets
7,069.1
7,336.1
7,395.7
7,574.8
7,642.7
7,838.2
7,614.0
7,982.3
7,918.3
8,138.0
7,803.8
7,686.6
7,862.1
Net New Assets (1)
37.2
28.1
43.5
44.3
51.8
42.9
22.9
31.4
80.3
33.6
40.6
46.3
(9.2
)
(120
%)
(125
%)
Net Market Gains (Losses)
229.8
31.5
135.6
23.6
143.7
(267.1
)
345.4
(95.4
)
139.4
(367.8
)
(157.8
)
129.2
(568.5
)
Total Client Assets (at month end)
7,336.1
7,395.7
7,574.8
7,642.7
7,838.2
7,614.0
7,982.3
7,918.3
8,138.0
7,803.8
7,686.6
7,862.1
7,284.4
(7
%)
(1
%)
Core Net New Assets (2)
37.2
28.1
43.5
44.3
51.8
42.9
36.8
45.1
80.3
33.6
40.6
46.3
(9.2
)
(120
%)
(125
%)
Receiving Ongoing Advisory Services (at month end) Investor
Services
511.1
517.8
525.1
531.9
542.5
530.1
548.3
543.1
559.2
541.9
533.7
538.9
509.3
(5
%)
-
Advisor Services (3)
3,112.5
3,150.4
3,209.3
3,256.5
3,333.4
3,253.2
3,399.8
3,374.3
3,505.2
3,382.4
3,342.5
3,404.6
3,190.5
(6
%)
3
%
Client Accounts (at month end, in thousands) Active
Brokerage Accounts
31,877
32,110
32,265
32,386
32,513
32,675
32,796
32,942
33,165
33,308
33,421
33,577
33,759
1
%
6
%
Banking Accounts
1,562
1,584
1,574
1,578
1,594
1,580
1,593
1,608
1,614
1,628
1,641
1,641
1,652
1
%
6
%
Corporate Retirement Plan Participants
2,116
2,130
2,149
2,159
2,188
2,207
2,213
2,198
2,200
2,216
2,235
2,246
2,261
1
%
7
%
Client Activity New Brokerage Accounts (in thousands)
609
549
499
402
402
374
397
448
473
426
356
420
386
(8
%)
(37
%)
Client Cash as a Percentage of Client Assets (4)
10.9
%
10.8
%
10.5
%
10.4
%
10.3
%
10.8
%
10.4
%
10.5
%
10.9
%
11.3
%
11.5
%
11.4
%
11.9
%
50 bp
100 bp
Derivative Trades as a Percentage of Total Trades
20.4
%
20.9
%
20.6
%
22.2
%
23.1
%
23.1
%
22.5
%
23.4
%
23.0
%
22.4
%
24.0
%
22.4
%
21.9
%
(50) bp
150 bp
Selected Average Balances (in millions of dollars) Average
Interest-Earning Assets (5)
527,194
528,642
536,146
546,579
552,372
565,379
574,181
584,362
605,709
622,997
629,042
644,768
636,668
(1
%)
21
%
Average Margin Balances
72,863
75,921
78,410
79,910
81,021
81,705
83,835
87,311
88,328
86,737
84,354
81,526
83,762
3
%
15
%
Average Bank Deposit Account Balances (6)
162,392
160,459
161,377
151,275
150,896
152,330
154,040
153,877
154,918
157,706
153,824
155,657
152,653
(2
%)
(6
%)
Mutual Fund and Exchange-Traded Fund Net Buys (Sells)
(7,8) (in millions of dollars) Equities
13,422
9,854
10,873
7,418
8,808
7,596
8,840
13,099
11,519
7,384
9,371
14,177
(786
)
Hybrid
877
1
390
666
569
335
81
308
(1,207
)
(367
)
(478
)
(497
)
(529
)
Bonds
8,940
5,906
10,101
6,917
8,044
6,232
4,425
4,097
5,600
1,804
(1,973
)
(7,851
)
(6,933
)
Net Buy (Sell) Activity (in millions of dollars) Mutual
Funds (7)
5,754
2,022
5,872
2,644
3,876
(308
)
302
189
(2,859
)
(4,961
)
(6,318
)
(11,888
)
(16,657
)
Exchange-Traded Funds (8)
17,485
13,739
15,492
12,357
13,545
14,471
13,044
17,315
18,771
13,782
13,238
17,717
8,409
Money Market Funds
(5,153
)
(3,988
)
(3,806
)
(2,501
)
(1,372
)
(1,512
)
(451
)
(1,725
)
(144
)
(1,984
)
(1,086
)
(1,344
)
(3,430
)
Note: Certain supplemental
details related to the information above can be found at:
https://www.aboutschwab.com/financial-reports.
(1)
November 2021 includes an outflow
of $13.7 billion from a mutual fund clearing services client.
October 2021 includes an outflow of $13.9 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. These flows may span multiple reporting
periods.
(3)
Excludes Retirement Business
Services.
(4)
Schwab One®, certain cash
equivalents, bank deposits, third-party bank deposit accounts, and
money market fund balances as a percentage of total client
assets.
(5)
Represents average total
interest-earning assets on the company's balance sheet.
(6)
Represents average TD Ameritrade
clients’ uninvested cash sweep account balances held in deposit
accounts at third-party financial institutions.
(7)
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.
(8)
Represents the principal value of
client ETF transactions handled by Schwab, including transactions
in proprietary ETFs.
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MEDIA: Mayura Hooper Charles Schwab Phone: 415-667-1525
INVESTORS/ANALYSTS: Jeff Edwards Charles Schwab Phone:
415-667-1524
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