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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Charles Schwab Corporation | NYSE:SCHW | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.09 | 0.12% | 74.98 | 75.175 | 74.52 | 74.96 | 253,748 | 14:43:56 |
Revenues Grow 8% Year-Over-Year to $2.7 Billion, Marking Sustained Business Momentum
Core Net New Assets Total $37.2 Billion and Client Assets Reach a Record $3.70 Trillion
The Charles Schwab Corporation announced today that its net income for the second quarter of 2019 was $937 million, down 3% from $964 million for the prior quarter, and up 8% from $866 million for the second quarter of 2018. Net income for the six months ended June 30, 2019 was a record $1.9 billion, up 15% from the year-earlier period.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190716005413/en/
Three Months Ended June 30,
%
Six Months Ended June 30,
%
Financial Highlights
2019
2018
Change
2019
2018
Change
Net revenues (in millions)
$
2,681
$
2,486
8%
$
5,404
$
4,884
11%
Net income (in millions)
$
937
$
866
8%
$
1,901
$
1,649
15%
Diluted earnings per common share
$
.66
$
.60
10%
$
1.35
$
1.14
18%
Pre-tax profit margin
46.1
%
45.5
%
46.3
%
43.7
%
Return on average common stockholders’ equity (annualized)
19
%
19
%
20
%
19
%
Note: All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding.
CEO Walt Bettinger said, “Our ‘no trade-offs’ approach to combining value, service, transparency, and trust continues to resonate with clients, as they are drawn to our contemporary full-service model through all environments. Thus far in 2019, a challenging mix of geopolitical, economic, and market dynamics has persisted, with investors facing unresolved trade negotiations, the Brexit debate and signals that the Fed may be moving towards a reversal in rate policy, all while U.S. equity markets have rallied to record territory. Amidst this backdrop, we drove sustained business momentum. Clients opened nearly 400,000 new brokerage accounts during the second quarter, bringing year-to-date new accounts to 772,000, helping push active accounts to the 12 million mark by quarter-end, up 7% year-over-year. This includes 3.5 million accounts under the guidance of the 7,500+ independent advisors who custody with us; those accounts are up 8% as advisors successfully build their businesses with our assistance.”
Mr. Bettinger continued, “Both advisors and individual clients contributed to our total core net new assets of $37.2 billion during the second quarter. With first half core net new assets of $88.9 billion, we sustained an annualized organic growth rate in excess of 5% throughout the period despite seasonal tax outflows in April. These strong flows reflect our ability to win in a competitive marketplace – clients have transferred nearly two dollars of assets in for every dollar out over the past six months, helping total client assets climb to a record $3.70 trillion as of June 30th, an increase of $305 billion, or 9% from a year ago.”
“Our “Through Clients’ Eyes” strategy includes serving our clients’ evolving needs where and how they prefer,” Mr. Bettinger added. “We recently opened our 61st independent branch, up from 53 at year end. These offices help extend our traditional branch network, delivering Schwab’s capabilities through local, community-based professionals. For clients exploring our lending capabilities, we have introduced new features to our Pledged Asset Line® offering, including loans with no preset term, streamlined origination and underwriting criteria, and a new application process available via any web-enabled device, with access to a new loan in as little as 24 hours. To aid advisors with growing and managing their practices, we are implementing digital alternatives to traditionally paper-based processes; by eliminating manual touch points and enabling automated status updates, these tools improve efficiency for both advisors and the company. We know that investing in these and other initiatives to build an ever more capable and efficient Schwab is important to our clients and our ability to continue winning in the marketplace. Through consistent strategic focus and disciplined execution, we expect to sustain our track record of delivering profitable growth and long-term value creation while putting clients first.”
CFO Peter Crawford commented, “Our sustained business momentum helped us achieve our strongest second quarter ever, even as we weathered shifts in client asset allocations and activity levels, as well as the interest rate environment. Overall, revenues were up 8% from a year ago at $2.7 billion, which was just under last quarter’s record mark. Net interest revenue rose 14% year-over-year to $1.6 billion, largely driven by higher interest-earning assets relating to the transfer of sweep money market fund balances to bank and broker-dealer sweep. In addition, our net interest margin rose 10 bps from a year ago to 2.40%, reflecting the Fed’s 2018 rate hikes. Asset management and administration fees decreased 3% year-over-year to $786 million as a result of lower money market fund revenue due to the sweep transfers as well as ongoing declines in Mutual Fund OneSource® balances, partially offset by growing enrollment in our advisory solutions. Trading revenue declined 3% to $174 million due to a decrease in average revenue per trade, which more than offset higher activity. Finally, other revenue rose 32%, driven primarily by a gain on the sale of PortfolioCenter®, a portfolio management and reporting software solution for advisors, to Tamarac Inc. Looking at expenses, our 7% increase reflects planned growth in staffing and our investments to drive efficiency and scale as we support our expanding client base. Our ongoing focus on driving efficiency while managing our spending in a disciplined manner enabled us to maintain our ratio of expenses to client assets at 16 bps for the quarter and achieve a pre-tax profit margin of 46.1% – our 5th consecutive quarter of at least 45%.”
Mr. Crawford concluded, “Effective balance sheet management remains a priority as we aim to maintain appropriate liquidity and support business growth. During the second quarter, we issued $600 million in senior notes with a 10-year maturity. Additionally, we transferred just under $200 million from sweep money market fund balances to bank and broker-dealer sweep, marking the completion of a 12-year process during which we moved approximately $130 billion. With sweep transfers done, tax season disbursements and some client sorting between invested and transactional cash allocations contributed to consolidated balance sheet assets declining by approximately $6 billion during the quarter to $276 billion. Consistent with our intent to return excess capital to stockholders, we repurchased 29.1 million shares for $1.2 billion during the quarter, leaving us with an outstanding authorization of $2.8 billion. The company’s preliminary Tier 1 Leverage ratio at quarter-end was 7.3%, somewhat above our operating objective of 6.75% - 7%. Our 19% return on equity for the second quarter marked our 5th consecutive quarter of at least 19% – our best sustained performance since 2009.”
Commentary from the CFO
Periodically, our Chief Financial Officer provides insight and commentary regarding Schwab’s financial picture at: https://www.aboutschwab.com/cfo-commentary. The most recent commentary, which provides perspective on crossing the $250 billion consolidated asset threshold for heightened regulatory requirements, was posted on August 14, 2018.
Forward-Looking Statements
This press release contains forward-looking statements relating to client demand for the company’s full-service model, including advisory solutions; growth in the client base, accounts and assets; investments to drive efficiency and scale; profitable growth; long-term value creation; expenses; liquidity; capital returns to stockholders; and Tier 1 Leverage Ratio operating objective. 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, equity valuations, and trading activity; client use of the company’s advisory solutions and other products and services; the company’s ability to attract and retain clients and registered investment advisors and grow those relationships and client assets; competitive pressures on pricing, including deposit rates; the company’s ability to develop and launch new products, services, and capabilities, as well as implement infrastructure, in a timely and successful manner; the level of client assets, including cash balances; capital and liquidity needs and management; the company’s ability to manage expenses; client sensitivity to interest rates; and other factors set forth in the company’s most recent report on Form 10-K.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with more than 365 offices and 12.0 million active brokerage accounts, 1.7 million corporate retirement plan participants, 1.3 million banking accounts, and $3.70 trillion in client assets as of June 30, 2019. 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 subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and 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 banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.schwab.com and https://www.aboutschwab.com.
THE CHARLES SCHWAB CORPORATION
Consolidated Statements of Income
(In millions, except per share amounts)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2019
2018
2019
2018
Net Revenues
Interest revenue
$
1,927
$
1,590
$
3,925
$
3,011
Interest expense
(318
)
(183
)
(635
)
(341
)
Net interest revenue
1,609
1,407
3,290
2,670
Asset management and administration fees
786
814
1,541
1,665
Trading revenue
174
180
359
381
Other
112
85
214
168
Total net revenues
2,681
2,486
5,404
4,884
Expenses Excluding Interest
Compensation and benefits
807
745
1,657
1,515
Professional services
178
156
348
312
Occupancy and equipment
133
122
264
244
Advertising and market development
77
77
146
150
Communications
62
58
124
120
Depreciation and amortization
84
75
167
148
Regulatory fees and assessments
30
50
62
101
Other
74
72
136
161
Total expenses excluding interest
1,445
1,355
2,904
2,751
Income before taxes on income
1,236
1,131
2,500
2,133
Taxes on income
299
265
599
484
Net Income
937
866
1,901
1,649
Preferred stock dividends and other
50
53
89
90
Net Income Available to Common Stockholders
$
887
$
813
$
1,812
$
1,559
Weighted-Average Common Shares Outstanding:
Basic
1,328
1,350
1,331
1,349
Diluted
1,337
1,364
1,340
1,363
Earnings Per Common Shares Outstanding:
Basic
$
.67
$
.60
$
1.36
$
1.16
Diluted
$
.66
$
.60
$
1.35
$
1.14
THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)
Q2-19 % change
2019
2018
vs.
vs.
Second
First
Fourth
Third
Second
(In millions, except per share amounts and as noted)
Q2-18
Q1-19
Quarter
Quarter
Quarter
Quarter
Quarter
Net Revenues
Net interest revenue
14
%
(4
)%
$
1,609
$
1,681
$
1,626
$
1,527
$
1,407
Asset management and administration fees
(3
)%
4
%
786
755
755
809
814
Trading revenue
(3
)%
(6
)%
174
185
206
176
180
Other
32
%
10
%
112
102
82
67
85
Total net revenues
8
%
(2
)%
2,681
2,723
2,669
2,579
2,486
Expenses Excluding Interest
Compensation and benefits
8
%
(5
)%
807
850
805
737
745
Professional services
14
%
5
%
178
170
178
164
156
Occupancy and equipment
9
%
2
%
133
131
128
124
122
Advertising and market development
—
12
%
77
69
93
70
77
Communications
7
%
—
62
62
63
59
58
Depreciation and amortization
12
%
1
%
84
83
80
78
75
Regulatory fees and assessments
(40
)%
(6
)%
30
32
31
57
50
Other
3
%
19
%
74
62
81
71
72
Total expenses excluding interest
7
%
(1
)%
1,445
1,459
1,459
1,360
1,355
Income before taxes on income
9
%
(2
)%
1,236
1,264
1,210
1,219
1,131
Taxes on income
13
%
—
299
300
275
296
265
Net Income
8
%
(3
)%
$
937
$
964
$
935
$
923
$
866
Preferred stock dividends and other
(6
)%
28
%
50
39
50
38
53
Net Income Available to Common Stockholders
9
%
(4
)%
$
887
$
925
$
885
$
885
$
813
Earnings per common share:
Basic
12
%
(3
)%
$
.67
$
.69
$
.66
$
.66
$
.60
Diluted
10
%
(4
)%
$
.66
$
.69
$
.65
$
.65
$
.60
Dividends declared per common share
70
%
—
$
.17
$
.17
$
.13
$
.13
$
.10
Weighted-average common shares outstanding:
Basic
(2
)%
—
1,328
1,333
1,343
1,351
1,350
Diluted
(2
)%
(1
)%
1,337
1,344
1,354
1,364
1,364
Performance Measures
Pre-tax profit margin
46.1
%
46.4
%
45.3
%
47.3
%
45.5
%
Return on average common stockholders’ equity (annualized) (1)
19
%
20
%
20
%
20
%
19
%
Financial Condition (at quarter end, in billions)
Cash and cash equivalents
82
%
(26
)%
$
24.2
$
32.6
$
27.9
$
21.8
$
13.3
Cash and investments segregated
28
%
1
%
14.1
13.9
13.6
8.5
11.0
Receivables from brokerage clients — net
(4
)%
4
%
21.4
20.5
21.7
22.4
22.4
Available for sale securities
(2
)%
(9
)%
54.6
60.0
66.6
57.6
55.5
Held to maturity securities
1
%
4
%
138.3
132.4
144.0
139.0
136.8
Bank loans — net
—
1
%
16.6
16.5
16.6
16.6
16.6
Total assets
5
%
(2
)%
276.3
282.8
296.5
272.1
261.9
Bank deposits
4
%
(5
)%
208.4
219.5
231.4
213.4
199.9
Payables to brokerage clients
2
%
4
%
31.0
29.7
32.7
27.9
30.3
Long-term debt
28
%
9
%
7.4
6.8
6.9
5.8
5.8
Stockholders’ equity
6
%
(1
)%
21.3
21.6
20.7
20.8
20.1
Other
Full-time equivalent employees (at quarter end, in thousands)
10
%
3
%
20.5
20.0
19.5
19.1
18.7
Capital expenditures — purchases of equipment, office facilities, and property, net (in millions)
37
%
(4
)%
$
173
$
181
$
159
$
156
$
126
Expenses excluding interest as a percentage of average client assets (annualized)
0.16
%
0.17
%
0.17
%
0.15
%
0.16
%
Clients’ Daily Average Trades (in thousands)
Revenue trades (2)
4
%
(6
)%
392
418
466
382
376
Asset-based trades (3)
(7
)%
(7
)%
138
149
188
129
149
Other trades (4)
4
%
(11
)%
186
210
213
172
179
Total
2
%
(8
)%
716
777
867
683
704
Average Revenue Per Revenue Trade (2)
(5
)%
(3
)%
$
6.94
$
7.19
$
7.13
$
7.27
$
7.30
(1)
Return on average common stockholders’ equity is calculated using net income available to common stockholders divided by average common stockholders’ equity.
(2)
Includes all client trades that generate trading revenue (i.e., commission revenue or principal transaction revenue); also known as DART.
(3)
Includes eligible trades executed by clients who participate in one or more of the company’s asset-based pricing relationships.
(4)
Includes all commission-free trades, including Schwab Mutual Fund OneSource® funds and ETFs, and other proprietary products.
THE CHARLES SCHWAB CORPORATION
Net Interest Revenue Information
(In millions)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2019
2018
2019
2018
Average Balance
Interest Revenue/ Expense
Average Yield/ Rate
Average Balance
Interest Revenue/ Expense
Average Yield/ Rate
Average Balance
Interest Revenue/ Expense
Average Yield/ Rate
Average Balance
Interest Revenue/ Expense
Average Yield/ Rate
Interest-earning assets
Cash and cash equivalents
$
26,146
$
158
2.39
%
$
12,764
$
57
1.80
%
$
25,568
$
309
2.41
%
$
14,912
$
123
1.65
%
Cash and investments segregated
14,588
89
2.41
%
11,825
50
1.68
%
14,075
172
2.43
%
12,891
98
1.51
%
Broker-related receivables (1)
199
—
1.38
%
378
2
1.58
%
228
2
2.15
%
333
3
1.47
%
Receivables from brokerage clients
19,423
217
4.42
%
19,775
204
4.09
%
19,199
431
4.46
%
19,326
383
3.95
%
Available for sale securities (2)
56,020
386
2.74
%
52,682
291
2.19
%
61,407
837
2.72
%
51,533
531
2.06
%
Held to maturity securities
132,738
899
2.70
%
129,825
812
2.49
%
132,583
1,815
2.73
%
125,641
1,533
2.44
%
Bank loans
16,560
148
3.58
%
16,530
138
3.32
%
16,569
297
3.59
%
16,493
268
3.25
%
Total interest-earning assets
265,674
1,897
2.84
%
243,779
1,554
2.54
%
269,629
3,863
2.86
%
241,129
2,939
2.43
%
Other interest revenue
30
36
62
72
Total interest-earning assets
$
265,674
$
1,927
2.88
%
$
243,779
$
1,590
2.60
%
$
269,629
$
3,925
2.90
%
$
241,129
$
3,011
2.49
%
Funding sources
Bank deposits
$
210,811
$
224
0.43
%
$
193,029
$
117
0.24
%
$
215,374
$
450
0.42
%
$
185,052
$
181
0.20
%
Payables to brokerage clients
23,034
24
0.42
%
21,729
14
0.26
%
22,611
47
0.42
%
22,097
21
0.20
%
Short-term borrowings (1)
3
—
2.68
%
1,429
7
1.94
%
17
—
2.50
%
6,770
54
1.59
%
Long-term debt
7,090
63
3.58
%
4,961
43
3.47
%
6,968
125
3.60
%
4,678
80
3.42
%
Total interest-bearing liabilities
240,938
311
0.52
%
221,148
181
0.33
%
244,970
622
0.51
%
218,597
336
0.31
%
Non-interest-bearing funding sources
24,736
22,631
24,659
22,532
Other interest expense
7
2
13
5
Total funding sources
$
265,674
$
318
0.48
%
$
243,779
$
183
0.30
%
$
269,629
$
635
0.47
%
$
241,129
$
341
0.28
%
Net interest revenue
$
1,609
2.40
%
$
1,407
2.30
%
$
3,290
2.43
%
$
2,670
2.21
%
(1)
Interest revenue or expense was less than $500,000 in the period or periods presented.
(2)
Amounts have been calculated based on amortized cost.
THE CHARLES SCHWAB CORPORATION
Asset Management and Administration Fees Information
(In millions)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2019
2018
2019
2018
Average Client Assets
Revenue
Average Fee
Average Client Assets
Revenue
Average Fee
Average Client Assets
Revenue
Average Fee
Average Client Assets
Revenue
Average Fee
Schwab money market funds
$
161,998
$
123
0.30
%
$
139,968
$
147
0.42
%
$
160,133
$
245
0.31
%
$
148,165
$
329
0.45
%
Schwab equity and bond funds, ETFs, and collective trust funds (CTFs) (1)
261,773
74
0.11
%
218,877
76
0.14
%
253,048
144
0.11
%
215,153
150
0.14
%
Mutual Fund OneSource® and other non-transaction fee funds
192,227
152
0.32
%
217,867
175
0.32
%
189,725
299
0.32
%
220,268
353
0.32
%
Other third-party mutual funds and ETFs (2)
471,638
79
0.07
%
325,061
71
0.09
%
462,050
154
0.07
%
322,391
141
0.09
%
Total mutual funds, ETFs, and CTFs (3)
$
1,087,636
428
0.16
%
$
901,773
469
0.21
%
$
1,064,956
842
0.16
%
$
905,977
973
0.22
%
Advice solutions (3)
Fee-based
$
243,050
295
0.49
%
$
225,879
283
0.50
%
$
236,722
573
0.49
%
$
225,320
565
0.51
%
Non-fee-based
69,274
—
—
62,109
—
—
68,015
—
—
60,964
—
—
Total advice solutions
$
312,324
295
0.38
%
$
287,988
283
0.39
%
$
304,737
573
0.38
%
$
286,284
565
0.40
%
Other balance-based fees (1,4)
408,929
54
0.05
%
372,029
51
0.05
%
400,560
106
0.05
%
391,236
106
0.05
%
Other (5)
9
11
20
21
Total asset management and administration fees
$
786
$
814
$
1,541
$
1,665
(1)
Beginning in the first quarter of 2019, a change was made to move CTFs from other balance-based fees. Prior periods have been recast to reflect this change.
(2)
Includes Schwab ETF OneSourceTM.
(3)
Advice solutions include managed portfolios, specialized strategies, and customized investment advice such as Schwab Private ClientTM, Schwab Managed PortfoliosTM, Managed Account Select®, Schwab Advisor Network®, Windhaven® Strategies, ThomasPartners® Strategies, Schwab Index Advantage® advised retirement plan balances, Schwab Intelligent Portfolios®, Institutional Intelligent Portfolios®, and Schwab Intelligent Portfolios PremiumTM; as well as legacy non-fee advice solutions including Schwab Advisor Source and certain retirement plan balances. Average client assets for advice solutions may also include the asset balances contained in the mutual fund and/or ETF categories listed above. For the total end of period view, please see the Monthly Activity Report.
(4)
Includes various asset-related fees, such as trust fees, 401(k) recordkeeping fees, and mutual fund clearing fees and other service fees.
(5)
Includes miscellaneous service and transaction fees relating to mutual funds and ETFs that are not balance-based.
THE CHARLES SCHWAB CORPORATION
Growth in Client Assets and Accounts
(Unaudited)
Q2-19 % Change
2019
2018
vs.
vs.
Second
First
Fourth
Third
Second
(In billions, at quarter end, except as noted)
Q2-18
Q1-19
Quarter
Quarter
Quarter
Quarter
Quarter
Assets in client accounts
Schwab One®, certain cash equivalents and bank deposits
4
%
(4
)%
$
237.3
$
247.0
$
261.2
$
239.5
$
228.2
Proprietary mutual funds (Schwab Funds® and Laudus Funds®) and CTFs
Money market funds (1)
25
%
5
%
168.1
159.7
153.5
128.5
134.2
Equity and bond funds and CTFs (2,3)
9
%
4
%
110.9
106.2
94.3
107.4
102.1
Total proprietary mutual funds and CTFs
18
%
5
%
279.0
265.9
247.8
235.9
236.3
Mutual Fund Marketplace® (4)
Mutual Fund OneSource® and other non-transaction fee funds
(7
)%
1
%
197.8
195.1
180.5
212.6
212.5
Mutual fund clearing services
10
%
6
%
192.9
182.7
164.4
182.2
175.3
Other third-party mutual funds
7
%
4
%
767.3
737.2
650.4
740.1
716.1
Total Mutual Fund Marketplace
5
%
4
%
1,158.0
1,115.0
995.3
1,134.9
1,103.9
Total mutual fund assets
7
%
4
%
1,437.0
1,380.9
1,243.1
1,370.8
1,340.2
Exchange-traded funds (ETFs)
Proprietary ETFs (3)
25
%
7
%
143.6
134.7
115.2
125.2
114.8
Schwab ETF OneSource™ (4)
186
%
7
%
88.1
82.5
30.6
33.3
30.8
Other third-party ETFs
(2
)%
4
%
315.7
303.7
309.9
338.6
322.1
Total ETF assets
17
%
5
%
547.4
520.9
455.7
497.1
467.7
Equity and other securities (2)
6
%
3
%
1,168.3
1,131.3
1,005.4
1,186.7
1,106.2
Fixed income securities
21
%
2
%
332.1
324.1
306.1
290.4
275.1
Margin loans outstanding
(3
)%
5
%
(19.7
)
(18.8
)
(19.3
)
(20.8
)
(20.4
)
Total client assets
9
%
3
%
$
3,702.4
$
3,585.4
$
3,252.2
$
3,563.7
$
3,397.0
Client assets by business
Investor Services
9
%
3
%
$
1,946.5
$
1,886.7
$
1,701.7
$
1,876.9
$
1,784.8
Advisor Services
9
%
3
%
1,755.9
1,698.7
1,550.5
1,686.8
1,612.2
Total client assets
9
%
3
%
$
3,702.4
$
3,585.4
$
3,252.2
$
3,563.7
$
3,397.0
Net growth in assets in client accounts (for the quarter ended)
Net new assets by business
Investor Services (5)
31
%
(39
)%
$
17.9
$
29.2
$
28.7
$
27.8
$
13.7
Advisor Services
(36
)%
(14
)%
19.3
22.5
26.6
25.7
30.2
Total net new assets
(15
)%
(28
)%
$
37.2
$
51.7
$
55.3
$
53.5
$
43.9
Net market gains (losses)
67
%
(72
)%
79.8
281.5
(366.8
)
113.2
47.7
Net growth (decline)
28
%
(65
)%
$
117.0
$
333.2
$
(311.5
)
$
166.7
$
91.6
New brokerage accounts (in thousands, for the quarter ended)
1
%
—
386
386
380
369
384
Client accounts (in thousands)
Active brokerage accounts (6)
7
%
2
%
11,967
11,787
11,593
11,423
11,202
Banking accounts
7
%
3
%
1,336
1,300
1,302
1,283
1,250
Corporate retirement plan participants
6
%
1
%
1,698
1,684
1,655
1,627
1,599
(1)
Total client assets in purchased money market funds are located at: https://www.aboutschwab.com/investor-relations.
(2)
Beginning in the first quarter of 2019, a change was made to move CTFs from equity and other securities. Prior periods have been recast to reflect this change.
(3)
Includes balances held on and off the Schwab platform. As of June 30, 2019, off-platform equity and bond funds, CTFs, and ETFs were $12.5 billion, $4.7 billion, and $38.2 billion, respectively.
(4)
Excludes all proprietary mutual funds and ETFs.
(5)
Second quarter of 2018 includes outflows of $9.5 billion from certain mutual fund clearing services clients.
(6)
In September 2018, the definition of active brokerage accounts was standardized across all account types as accounts with activity within the preceding 270 days. This change increased active accounts by approximately 63,000.
The Charles Schwab Corporation Monthly Activity Report For June 2019
2018
2019
Change
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Mo.
Yr.
Market Indices (at month end)
Dow Jones Industrial Average
24,271
25,415
25,965
26,458
25,116
25,538
23,327
25,000
25,916
25,929
26,593
24,815
26,600
7
%
10
%
Nasdaq Composite
7,510
7,672
8,110
8,046
7,306
7,331
6,635
7,282
7,533
7,729
8,095
7,453
8,006
7
%
7
%
Standard & Poor’s 500
2,718
2,816
2,902
2,914
2,712
2,760
2,507
2,704
2,784
2,834
2,946
2,752
2,942
7
%
8
%
Client Assets (in billions of dollars)
Beginning Client Assets
3,378.1
3,397.0
3,477.9
3,555.9
3,563.7
3,388.1
3,431.9
3,252.2
3,447.7
3,533.0
3,585.4
3,668.5
3,530.6
Net New Assets
24.1
16.3
20.8
16.4
14.9
15.6
24.8
15.1
18.3
18.3
(0.3
)
17.3
20.2
17
%
(16
)%
Net Market Gains (Losses)
(5.2
)
64.6
57.2
(8.6
)
(190.5
)
28.2
(204.5
)
180.4
67.0
34.1
83.4
(155.2
)
151.6
Total Client Assets (at month end)
3,397.0
3,477.9
3,555.9
3,563.7
3,388.1
3,431.9
3,252.2
3,447.7
3,533.0
3,585.4
3,668.5
3,530.6
3,702.4
5
%
9
%
Core Net New Assets (1)
24.1
16.3
20.8
16.4
14.9
15.6
24.8
15.1
18.3
18.3
(0.3
)
17.3
20.2
17
%
(16
)%
Receiving Ongoing Advisory Services (at month end)
Investor Services
280.0
287.0
292.0
292.7
280.3
284.7
272.4
286.9
294.2
298.4
305.7
298.5
311.6
4
%
11
%
Advisor Services (2)
1,488.7
1,525.5
1,555.3
1,559.2
1,485.8
1,510.1
1,436.1
1,514.2
1,551.6
1,572.8
1,608.0
1,554.6
1,626.6
5
%
9
%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts (3)
11,202
11,243
11,310
11,423
11,479
11,529
11,593
11,653
11,712
11,787
11,870
11,929
11,967
—
7
%
Banking Accounts (4)
1,250
1,262
1,274
1,283
1,289
1,297
1,302
1,312
1,313
1,300
1,310
1,323
1,336
1
%
7
%
Corporate Retirement Plan Participants
1,599
1,611
1,621
1,627
1,634
1,639
1,655
1,679
1,685
1,684
1,690
1,699
1,698
—
6
%
Client Activity
New Brokerage Accounts (in thousands)
121
118
132
119
133
115
132
131
115
140
147
123
116
(6
)%
(4
)%
Inbound Calls (in thousands)
1,814
1,849
1,964
1,715
1,976
1,681
1,839
1,924
1,742
1,882
1,966
1,671
1,595
(5
)%
(12
)%
Web Logins (in thousands)
56,491
57,137
62,797
53,923
59,261
54,654
53,920
64,563
60,121
63,692
65,669
61,522
60,824
(1
)%
8
%
Client Cash as a Percentage of Client Assets (5)
10.7
%
10.5
%
10.4
%
10.3
%
11.1
%
11.2
%
12.8
%
11.7
%
11.5
%
11.3
%
10.9
%
11.3
%
10.9
%
(40) bp
20 bp
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (6, 7) (in millions of dollars)
Large Capitalization Stock
981
486
918
311
308
331
717
1,343
1,109
1,045
980
1,114
206
Small / Mid Capitalization Stock
1,195
768
(186
)
151
(1,344
)
(456
)
(1,414
)
1,329
638
302
136
(190
)
18
International
(498
)
(529
)
186
(88
)
(109
)
(418
)
(2,163
)
2,212
1,086
1,274
863
(100
)
225
Specialized
383
520
(245
)
73
(914
)
(397
)
(2,105
)
124
609
750
(109
)
(440
)
341
Hybrid
(288
)
(548
)
(678
)
(324
)
(1,313
)
(1,248
)
(2,985
)
(321
)
(309
)
(357
)
(228
)
(316
)
(181
)
Taxable Bond
928
879
965
1,371
(351
)
(836
)
(4,342
)
3,956
2,871
1,923
3,029
1,821
2,378
Tax-Free Bond
588
306
559
262
(591
)
(407
)
(409
)
1,184
1,111
1,133
760
1,057
682
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (6)
555
(522
)
(1,936
)
(1,538
)
(5,734
)
(7,955
)
(21,372
)
6,740
2,312
1,850
1,860
86
7
Exchange-Traded Funds (7)
2,734
2,404
3,455
3,294
1,420
4,524
8,671
3,087
4,803
4,220
3,571
2,860
3,662
Money Market Funds
(4,919
)
(4,801
)
704
(1,933
)
2,546
8,515
13,548
4,944
(1,577
)
1,785
(2,097
)
5,067
4,570
Average Interest-Earning Assets (8)
(in millions of dollars)
249,432
254,211
259,137
261,741
264,156
265,648
274,913
277,068
270,718
272,727
270,308
263,718
262,759
—
5
%
(1)
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.
(2)
Excludes Retirement Business Services.
(3)
In September 2018, the definition of active brokerage accounts was standardized across all account types as accounts with activity within the preceding 270 days. This change increased active accounts by approximately 63,000.
(4)
In March 2019, banking accounts were reduced by approximately 23,000 as a result of inactive account closures.
(5)
Schwab One®, certain cash equivalents, bank deposits, and money market fund balances as a percentage of total client assets.
(6)
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.
(7)
Represents the principal value of client ETF transactions handled by Schwab, including transactions in proprietary ETFs.
(8)
Represents average total interest-earning assets on the company’s balance sheet.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190716005413/en/
MEDIA: Mayura Hooper Charles Schwab Phone: 415-667-1525
INVESTORS/ANALYSTS: Rich Fowler Charles Schwab Phone: 415-667-1841
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