The Charles Schwab Corporation released its Monthly Activity
Report today. Company highlights for the month of May 2022
include:
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- Core net new assets brought to the company by new and existing
clients totaled $32.8 billion, as this year’s tax season followed a
normal schedule for the first time since 2019. Net new assets
excluding mutual fund clearing totaled $34.2 billion.
- Total client assets were $7.30 trillion as of month-end May,
down 1% from May 2021 and flat compared to April 2022.
- Client cash as a percentage of assets was 12.0% as of month-end
May, compared with 10.8% in May 2021 and 11.9% in April 2022.
CFO Peter Crawford commented, “Schwab’s strong business momentum
and rising interest rates are helping power our diversified
financial model. To the extent equity market valuations, client
trading activity, and margin loan utilization remain at early June
levels, we currently expect sequential revenue growth of 7.5% to
8.5% in the second quarter. At the same time, we anticipate second
quarter GAAP expenses staying essentially flat relative to the
prior period.”
Forward-Looking Statements
This press release contains forward-looking statements relating
to Schwab’s business momentum; expected sequential revenue growth
in the second quarter; and anticipated second quarter GAAP
expenses. 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 and the level of interest rates; the level and mix of
client trading activity; margin loan balances; securities lending;
competitive pressures on pricing; client cash sorting; client
sensitivity to rates; the level of client assets, including cash
balances; 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 support client
activity levels and attract and retain talent; balance sheet
positioning relative to changes in interest rates; interest earning
asset mix and growth; the company’s ability to manage expenses;
integration-related and other technology projects; compensation;
capital expenditures; the effect of adverse developments in
litigation or regulatory matters and the extent of any charges
associated with such matters; 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 $7.30 trillion in client assets as of
May 31, 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 May
2022
2021
2022
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®
34,529
34,503
34,935
35,361
33,844
35,820
34,484
36,338
35,132
33,893
34,678
32,977
32,990
-
(4%)
Nasdaq Composite®
13,749
14,504
14,673
15,259
14,449
15,498
15,538
15,645
14,240
13,751
14,221
12,335
12,081
(2%)
(12%)
Standard & Poor’s® 500
4,204
4,298
4,395
4,523
4,308
4,605
4,567
4,766
4,516
4,374
4,530
4,132
4,132
-
(2%)
Client Assets (in billions of
dollars)
Beginning Client Assets
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
Net New Assets (1)
28.1
43.5
44.3
51.8
42.9
22.9
31.4
80.3
33.6
40.6
46.3
(9.2
)
32.8
N/M
17%
Net Market Gains (Losses)
31.5
135.6
23.6
143.7
(267.1
)
345.4
(95.4
)
139.4
(367.8
)
(157.8
)
129.2
(568.5
)
(15.5
)
Total Client Assets (at month
end)
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
7,301.7
-
(1%)
Core Net New Assets (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
)
32.8
N/M
17%
Receiving Ongoing Advisory
Services (at month end)
Investor Services
517.8
525.1
531.9
542.5
530.1
548.3
543.1
559.2
541.9
533.7
538.9
509.3
513.0
1%
(1%)
Advisor Services (3)
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
3,213.8
1%
2%
Client Accounts (at month end,
in thousands)
Active Brokerage Accounts
32,110
32,265
32,386
32,513
32,675
32,796
32,942
33,165
33,308
33,421
33,577
33,759
33,822
-
5%
Banking Accounts
1,584
1,574
1,578
1,594
1,580
1,593
1,608
1,614
1,628
1,641
1,641
1,652
1,658
-
5%
Corporate Retirement Plan
Participants
2,130
2,149
2,159
2,188
2,207
2,213
2,198
2,200
2,216
2,235
2,246
2,261
2,275
1%
7%
Client Activity
New Brokerage Accounts (in
thousands)
549
499
402
402
374
397
448
473
426
356
420
386
323
(16%)
(41%)
Client Cash as a Percentage of
Client Assets (4)
10.8%
10.5%
10.4%
10.3%
10.8%
10.4%
10.5%
10.9%
11.3%
11.5%
11.4%
11.9%
12.0%
10 bp
120 bp
Derivative Trades as a Percentage
of Total Trades
20.9%
20.6%
22.2%
23.1%
23.1%
22.5%
23.4%
23.0%
22.4%
24.0%
22.4%
21.9%
22.6%
70 bp
170 bp
Selected Average Balances (in
millions of dollars)
Average Interest-Earning Assets
(5)
528,642
536,146
546,579
552,372
565,379
574,181
584,362
605,709
622,997
629,042
644,768
636,668
620,157
(3%)
17%
Average Margin Balances
75,921
78,410
79,910
81,021
81,705
83,835
87,311
88,328
86,737
84,354
81,526
83,762
78,841
(6%)
4%
Average Bank Deposit Account
Balances (6)
160,459
161,377
151,275
150,896
152,330
154,040
153,877
154,918
157,706
153,824
155,657
152,653
154,669
1%
(4%)
Mutual Fund and
Exchange-Traded Fund
Net Buys (Sells) (7,8) (in
millions of dollars)
Equities
9,854
10,873
7,418
8,808
7,596
8,840
13,099
11,519
7,384
9,371
14,177
(786
)
1,889
Hybrid
1
390
666
569
335
81
308
(1,207
)
(367
)
(478
)
(497
)
(529
)
(1,718
)
Bonds
5,906
10,101
6,917
8,044
6,232
4,425
4,097
5,600
1,804
(1,973
)
(7,851
)
(6,933
)
(6,121
)
Net Buy (Sell) Activity (in
millions of dollars)
Mutual Funds (7)
2,022
5,872
2,644
3,876
(308
)
302
189
(2,859
)
(4,961
)
(6,318
)
(11,888
)
(16,657
)
(20,761
)
Exchange-Traded Funds (8)
13,739
15,492
12,357
13,545
14,471
13,044
17,315
18,771
13,782
13,238
17,717
8,409
14,811
Money Market Funds
(3,988
)
(3,806
)
(2,501
)
(1,372
)
(1,512
)
(451
)
(1,725
)
(144
)
(1,984
)
(1,086
)
(1,344
)
(3,430
)
7,106
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.
N/M - Not meaningful. Percentage changes greater than 200% are
presented as not meaningful.
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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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