The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of April 2023 include:
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- Total net new assets brought to the company by new and existing clients in April 2023 totaled $13.6 billion, while core net new assets equaled negative $2.3 billion. These flows reflect client cash disbursements during tax season.
- Total client assets were $7.63 trillion as of month-end April, up 5% from April 2022 and up 1% compared to March 2023.
- Active brokerage accounts reached 34.2 million in April, up 1% from April 2022 and flat compared to March 2023.
Commentary from the CFO
Chief Financial Officer Peter Crawford commented, “As previously noted in my commentary published on May 5, 2023, April marked the third consecutive month of deceleration in the daily average pace of cash realignment within bank sweep deposits and Bank Deposit Account (BDA) balances. This trend has continued into May, with the month-to-date pace improving nearly 50% versus April. We remain confident that client cash realignment activity will abate during 2023 – helping client cash on the balance sheet resume growing in proportion with the growth in total client assets over time.”
Forward-Looking Statements
This press release contains forward-looking statements relating to client cash realignment activity; growth of client cash on the balance sheet; and growth in client assets. These forward-looking statements reflect management’s expectations as of the date hereof. Achievement of these expectations 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 the level of interest rates and equity valuations; client cash decisions; client sensitivity to rates; level of client assets, including cash balances; competitive pressures on pricing; capital and liquidity needs and management; balance sheet positioning relative to changes in interest rates; interest earning asset mix and growth; new or changed legislation, regulation or regulatory expectations; and client use of the company’s advisory solutions and other products and services. Other important factors include the company’s ability to attract and retain clients and independent investment advisors and grow those relationships and client assets; develop and launch new and enhanced products, services, and capabilities, as well as enhance its infrastructure and capacity, in a timely and successful manner; hire and retain talent; support client activity levels; 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 34.2 million active brokerage accounts, 2.4 million corporate retirement plan participants, 1.8 million banking accounts, and $7.63 trillion in client assets as of April 30, 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 April 2023 | |||||||||||||||||||||||||||||||||||||||||||||
2022 |
2023 |
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® | 32,977 |
|
32,990 |
|
30,775 |
|
32,845 |
|
31,510 |
|
28,726 |
|
32,733 |
|
34,590 |
|
33,147 |
|
34,086 |
|
32,657 |
|
33,274 |
|
34,098 |
|
2% |
|
3% |
||||||||||||||||
| Nasdaq Composite® | 12,335 |
|
12,081 |
|
11,029 |
|
12,391 |
|
11,816 |
|
10,576 |
|
10,988 |
|
11,468 |
|
10,466 |
|
11,585 |
|
11,456 |
|
12,222 |
|
12,227 |
|
- |
|
(1%) |
||||||||||||||||
| Standard & Poor’s® 500 | 4,132 |
|
4,132 |
|
3,785 |
|
4,130 |
|
3,955 |
|
3,586 |
|
3,872 |
|
4,080 |
|
3,840 |
|
4,077 |
|
3,970 |
|
4,109 |
|
4,169 |
|
1% |
|
1% |
||||||||||||||||
| Client Assets (in billions of dollars) |
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Beginning Client Assets | 7,862.1 |
|
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 |
|
|
|
|
||||||||||||||||
| Net New Assets (1) | (9.2 |
) |
32.8 |
|
19.8 |
|
31.5 |
|
43.3 |
|
39.8 |
|
42.0 |
|
33.1 |
|
53.3 |
|
36.1 |
|
41.7 |
|
72.9 |
|
13.6 |
|
(81%) |
|
N/M |
||||||||||||||||
| Net Market (Losses) Gains | (568.5 |
) |
(15.5 |
) |
(489.0 |
) |
440.8 |
|
(220.5 |
) |
(523.2 |
) |
318.4 |
|
282.9 |
|
(324.1 |
) |
394.7 |
|
(142.1 |
) |
126.9 |
|
37.9 |
|
|
|
|
||||||||||||||||
| Total Client Assets (at month end) | 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 |
|
1% |
|
5% |
||||||||||||||||
| Core Net New Assets (2) | (9.2 |
) |
32.8 |
|
40.6 |
|
31.5 |
|
43.3 |
|
39.8 |
|
42.0 |
|
33.1 |
|
53.3 |
|
36.1 |
|
41.7 |
|
53.9 |
|
(2.3 |
) |
(104%) |
|
75% |
||||||||||||||||
| Receiving Ongoing Advisory Services (at month end) |
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Investor Services | 509.3 |
|
513.0 |
|
483.8 |
|
514.8 |
|
499.2 |
|
466.6 |
|
487.3 |
|
514.0 |
|
499.8 |
|
524.6 |
|
515.5 |
|
526.2 |
|
530.7 |
|
1% |
|
4% |
||||||||||||||||
| Advisor Services (3) | 3,190.5 |
|
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 |
|
1% |
|
6% |
||||||||||||||||
| Client Accounts (at month end, in thousands) |
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Active Brokerage Accounts (4) | 33,759 |
|
33,822 |
|
33,896 |
|
33,934 |
|
33,984 |
|
33,875 |
|
33,896 |
|
33,636 |
|
33,758 |
|
33,878 |
|
34,010 |
|
34,120 |
|
34,248 |
|
- |
|
1% |
||||||||||||||||
| Banking Accounts | 1,652 |
|
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% |
|
6% |
||||||||||||||||
| Corporate Retirement Plan Participants | 2,261 |
|
2,275 |
|
2,275 |
|
2,267 |
|
2,285 |
|
2,305 |
|
2,322 |
|
2,336 |
|
2,351 |
|
2,369 |
|
2,384 |
|
2,379 |
|
2,391 |
|
1% |
|
6% |
||||||||||||||||
| Client Activity |
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| New Brokerage Accounts (in thousands) | 386 |
|
323 |
|
305 |
|
278 |
|
332 |
|
287 |
|
298 |
|
303 |
|
330 |
|
344 |
|
320 |
|
378 |
|
331 |
|
(12%) |
|
(14%) |
||||||||||||||||
| Client Cash as a Percentage of Client Assets (5) | 11.9% |
12.0% |
12.8% |
12.0% |
12.1% |
12.9% |
12.2% |
11.5% |
12.3% |
11.6% |
11.7% |
11.6% |
11.3% |
(30) bp |
|
(60) bp |
|||||||||||||||||||||||||||||
| Derivative Trades as a Percentage of Total Trades | 21.9% |
22.6% |
22.3% |
24.2% |
23.3% |
23.6% |
24.1% |
24.6% |
23.2% |
23.0% |
23.5% |
22.8% |
23.4% |
60 bp |
|
150 bp |
|||||||||||||||||||||||||||||
| Selected Average Balances (in millions of dollars) |
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Average Interest-Earning Assets (6) | 636,668 |
|
620,157 |
|
614,100 |
|
605,751 |
|
586,154 |
|
568,351 |
|
552,631 |
|
527,019 |
|
520,100 |
|
512,893 |
|
503,122 |
|
497,627 |
|
493,215 |
|
(1%) |
|
(23%) |
||||||||||||||||
| Average Margin Balances | 83,762 |
|
78,841 |
|
74,577 |
|
72,177 |
|
72,855 |
|
73,224 |
|
69,188 |
|
66,011 |
|
64,759 |
|
60,211 |
|
60,575 |
|
60,848 |
|
60,338 |
|
(1%) |
|
(28%) |
||||||||||||||||
| Average Bank Deposit Account Balances (7) | 152,653 |
|
154,669 |
|
155,306 |
|
154,542 |
|
148,427 |
|
141,198 |
|
136,036 |
|
130,479 |
|
126,953 |
|
122,387 |
|
115,816 |
|
109,392 |
|
104,775 |
|
(4%) |
|
(31%) |
||||||||||||||||
| Mutual Fund and Exchange-Traded Fund | |||||||||||||||||||||||||||||||||||||||||||||
| Net Buys (Sells) (8,9) (in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
| Equities | (786 |
) |
1,889 |
|
(1,586 |
) |
5,589 |
|
10,465 |
|
(2,662 |
) |
3,984 |
|
3,777 |
|
(1,837 |
) |
7,236 |
|
5,850 |
|
(3,234 |
) |
1,126 |
|
|||||||||||||||||||
| Hybrid | (529 |
) |
(1,718 |
) |
(1,054 |
) |
(2,041 |
) |
(783 |
) |
(938 |
) |
(1,380 |
) |
(2,052 |
) |
(1,595 |
) |
(433 |
) |
47 |
|
(1,641 |
) |
(462 |
) |
|||||||||||||||||||
| Bonds | (6,933 |
) |
(6,121 |
) |
(5,631 |
) |
729 |
|
(141 |
) |
(5,801 |
) |
(7,218 |
) |
(3,721 |
) |
(3,260 |
) |
5,646 |
|
4,281 |
|
6,158 |
|
2,575 |
|
|||||||||||||||||||
| Net Buy (Sell) Activity (in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
| Mutual Funds (8) | (16,657 |
) |
(20,761 |
) |
(16,258 |
) |
(8,674 |
) |
(7,117 |
) |
(15,200 |
) |
(18,473 |
) |
(17,143 |
) |
(21,851 |
) |
552 |
|
(2,338 |
) |
(7,423 |
) |
(4,904 |
) |
|||||||||||||||||||
| Exchange-Traded Funds (9) | 8,409 |
|
14,811 |
|
7,987 |
|
12,951 |
|
16,658 |
|
5,799 |
|
13,859 |
|
15,147 |
|
15,159 |
|
11,897 |
|
12,516 |
|
8,706 |
|
8,143 |
|
|||||||||||||||||||
| Money Market Funds | (3,430 |
) |
7,106 |
|
11,544 |
|
13,711 |
|
19,702 |
|
17,018 |
|
21,542 |
|
16,929 |
|
27,778 |
|
24,285 |
|
23,347 |
|
27,106 |
|
6,291 |
|
|||||||||||||||||||
| Note: Certain supplemental details related to the information above can be found at: https://www.aboutschwab.com/financial-reports. | ||||||||||||||||||||||||||||||
(1) |
April 2023 includes an inflow of $12.0 billion from a mutual fund clearing services client and inflows of $3.9 billion from off-platform Schwab Bank Certificates of Deposit (CDs). March 2023 includes inflows of $19.0 billion from off-platform Schwab CDs issued year-to-date through March 31,2023. 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 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. | ||||||||||||||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20230512005096/en/
Contacts
MEDIA:
Mayura Hooper
Charles Schwab
Phone: 415-667-1525
INVESTORS/ANALYSTS:
Jeff Edwards
Charles Schwab
Phone: 415-667-1524
