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BUSINESS: Schwab Reports Monthly Activity Highlights

business:-schwab-reports-monthly-activity-highlights
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By Daniel Webster, dWeb.News Publisher

WESTLAKE, Texas–(BUSINESS WIRE)–The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of August 2021 include:

  • Core net new assets brought to the company by new and existing clients totaled $51.8 billion. Net new assets excluding mutual fund clearing totaled $50.5 billion.
  • Total client assets were $7.84 trillion as of month-end August, up 75% from August 2020 and up 3% compared to July 2021.(1)
  • Derivative trades as a percentage of total trades were 23.1% in August 2021, compared with 13.8% in August 2020 and 22.2% in July 2021.(1)

(1)

Year over year comparisons are affected by the close of the TD Ameritrade acquisition on October 6, 2020

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 32.5 million active brokerage accounts, 2.2 million corporate retirement plan participants, 1.6 million banking accounts, and $7.8 trillion in client assets as of August 31, 2021. 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 August 2021
 

2020

2021

Change
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Mo. Yr.
Market Indices (at month end)
Dow Jones Industrial Average

28,430

27,782

26,502

29,639

30,606

29,983

30,932

32,982

33,875

34,529

34,503

34,935

35,361

1%

24%

Nasdaq Composite

11,775

11,168

10,912

12,199

12,888

13,071

13,192

13,247

13,963

13,749

14,504

14,673

15,259

4%

30%

Standard & Poor’s® 500

3,500

3,363

3,270

3,622

3,756

3,714

3,811

3,973

4,181

4,204

4,298

4,395

4,523

3%

29%

Client Assets (in billions of dollars)
Beginning Client Assets

4,278.0

4,489.7

4,395.3

5,878.5

6,421.0

6,691.7

6,759.6

6,900.5

7,069.1

7,336.1

7,395.7

7,574.8

7,642.7

Net New Assets (1)

20.0

20.0

1,596.9

32.1

61.7

34.2

37.0

62.6

37.2

28.1

43.5

44.3

51.8

17%

159%

Net Market Gains (Losses)

191.7

(114.4

)

(113.7

)

510.4

209.0

33.7

103.9

106.0

229.8

31.5

135.6

23.6

143.7

Total Client Assets (at month end)

4,489.7

4,395.3

5,878.5

6,421.0

6,691.7

6,759.6

6,900.5

7,069.1

7,336.1

7,395.7

7,574.8

7,642.7

7,838.2

3%

75%

Core Net New Assets (2)

20.0

20.0

25.6

32.1

61.7

34.2

51.4

62.6

37.2

28.1

43.5

44.3

51.8

17%

159%

Receiving Ongoing Advisory Services (at month end) (3)
Investor Services

366.8

361.2

425.3

457.1

471.8

472.4

481.3

495.2

511.1

517.8

525.1

531.9

542.5

2%

48%

Advisor Services (4)

1,900.5

1,870.1

2,505.5

2,715.7

2,828.3

2,840.6

2,913.3

2,997.9

3,112.5

3,150.4

3,209.3

3,256.5

3,333.4

2%

75%

Client Accounts (at month end, in thousands)
Active Brokerage Accounts

14,311

14,393

29,013

29,202

29,629

30,534

31,523

31,902

31,877

32,110

32,265

32,386

32,513

127%

Banking Accounts

1,493

1,486

1,496

1,504

1,499

1,518

1,542

1,608

1,562

1,584

1,574

1,578

1,594

1%

7%

Corporate Retirement Plan Participants

1,715

1,722

2,072

2,045

2,054

2,069

2,093

2,105

2,116

2,130

2,149

2,159

2,188

1%

28%

Client Activity
New Brokerage Accounts (in thousands) (5)

202

184

14,718

430

626

1,095

1,211

847

609

549

499

402

402

99%

Client Cash as a Percentage of Client Assets (6)

12.5%

12.8%

13.4%

12.4%

12.3%

12.2%

11.8%

11.5%

10.9%

10.8%

10.5%

10.4%

10.3%

(10) bp

(220) bp

Derivative Trades as a Percentage of Total Trades

13.8%

14.5%

20.5%

19.4%

18.9%

17.4%

16.6%

18.5%

20.4%

20.9%

20.6%

22.2%

23.1%

90 bp

930 bp

Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (7,8)

384,690

392,784

442,119

466,677

482,394

517,306

514,885

520,074

527,194

528,642

536,146

546,579

552,372

1%

44%

Average Margin Balances (8)

21,190

22,780

48,095

53,916

59,142

62,999

69,064

71,266

72,863

75,921

78,410

79,910

79,838

N/M

Average Bank Deposit Account Balances (8,9)

132,030

162,315

163,463

167,980

167,433

164,866

162,392

160,459

161,377

151,275

150,896

N/M

Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (10,11) (in millions of dollars)
Equities

(727

)

(1,372

)

(1,305

)

10,980

13,875

8,234

14,246

16,301

13,422

9,854

10,873

7,418

8,808

Hybrid

(124

)

(12

)

(553

)

(402

)

359

407

832

1,133

877

1

390

666

569

Bonds

9,328

6,857

6,765

5,956

12,169

13,601

9,334

8,237

8,940

5,906

10,101

6,917

8,044

Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (10)

2,568

757

(2,260

)

2,832

6,336

5,713

6,273

6,190

5,754

2,022

5,872

2,644

3,876

Exchange-Traded Funds (11)

5,909

4,716

7,167

13,702

20,067

16,529

18,139

19,481

17,485

13,739

15,492

12,357

13,545

Money Market Funds

(5,614

)

(6,627

)

(4,021

)

(5,908

)

(7,332

)

(5,248

)

(4,405

)

(4,528

)

(5,153

)

(3,988

)

(3,806

)

(2,501

)

(1,372

)

Note: Certain supplemental details related to the information above can be found at: https://www.aboutschwab.com/financial-reports.

(1)

February 2021 includes an outflow of $14.4 billion from a mutual fund clearing services client. October 2020 includes an inflow of $1.6 trillion related to the acquisition of TD Ameritrade.

(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)

Beginning in December 2020, AdvisorDirect® assets are presented as Investor Services. In December 2020, $46.5 billion and $50.4 billion for October and November, respectively, were reclassed from Advisor Services to Investor Services.

(4)

Excludes Retirement Business Services.

(5)

October 2020 includes 14.5 million new brokerage accounts related to the acquisition of TD Ameritrade.

(6)

Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets.

(7)

Represents average total interest-earning assets on the company’s balance sheet.

(8)

October 2020 averages reflect a full month of Schwab balances and 26 days of TD Ameritrade balances following the acquisition closing on October 6, 2020. Calculating the consolidated daily average from the closing date onwards would result in Average Interest-Earning Assets, Average Margin Balances, and Average Bank Deposit Account Balances of $450,004 million, $52,744 million, and $157,414 million, respectively.

(9)

Represents average TD Ameritrade clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions.

(10)

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.

(11)

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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