Schwab Reports Monthly Activity Highlights
The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of February 2022 include:
- Core net new assets brought to the company by new and existing clients totaled $40.6 billion. Net new assets excluding mutual fund clearing totaled $41.6 billion.
- Total client assets were $7.69 trillion as of month-end February, up 11% from February 2021 and down 2% compared to January 2022.
- Average margin balances were $84.4 billion in February, up 22% from February 2021 and down 3% compared to January 2022.
CFO Peter Crawford commented, "Thus far in 2022, client engagement remains strong, as evidenced by $74.2 billion in core net new assets and 6.6 million daily average trades during the first two months of the year. At the same time, current market conditions stemming from the tragedy unfolding in Ukraine have pushed major U.S. equity indices into correction territory. This pronounced pullback has weighed on client asset levels and margin balances, which are down 6% and 5%, respectively, since month-end December. Additionally, on a quarter-to-date basis, shifts in the mix of client trading activity have resulted in revenue per trade running approximately 5-10% below the prior quarter average, and softer demand from borrowers across the industry has impacted our securities lending revenue by more than 15%. Overall we believe our all-weather model remains firmly intact through these turbulent times and helps keep us positioned to benefit from improvements in the macroeconomic environment."
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 33.4 million active brokerage accounts, 2.2 million corporate retirement plan participants, 1.6 million banking accounts, and $7.69 trillion in client assets as of February 28, 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 February 2022 | |||||||||||||||||||||||||||||||||||||||||||||
2021 |
2022 |
Change | |||||||||||||||||||||||||||||||||||||||||||
| Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mo. | Yr. | |||||||||||||||||||||||||||||||
| Market Indices (at month end) | |||||||||||||||||||||||||||||||||||||||||||||
| Dow Jones Industrial Average | 30,932 |
|
32,982 |
|
33,875 |
|
34,529 |
|
34,503 |
|
34,935 |
|
35,361 |
|
33,844 |
|
35,820 |
|
34,484 |
|
36,338 |
|
35,132 |
|
33,893 |
|
(4 |
%) |
10 |
% |
|||||||||||||||
| Nasdaq Composite | 13,192 |
|
13,247 |
|
13,963 |
|
13,749 |
|
14,504 |
|
14,673 |
|
15,259 |
|
14,449 |
|
15,498 |
|
15,538 |
|
15,645 |
|
14,240 |
|
13,751 |
|
(3 |
%) |
4 |
% |
|||||||||||||||
| Standard & Poor's® 500 | 3,811 |
|
3,973 |
|
4,181 |
|
4,204 |
|
4,298 |
|
4,395 |
|
4,523 |
|
4,308 |
|
4,605 |
|
4,567 |
|
4,766 |
|
4,516 |
|
4,374 |
|
(3 |
%) |
15 |
% |
|||||||||||||||
| Client Assets (in billions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
| Beginning Client Assets | 6,759.6 |
|
6,900.5 |
|
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 |
|
|||||||||||||||||||
| Net New Assets (1) | 37.0 |
|
62.6 |
|
37.2 |
|
28.1 |
|
43.5 |
|
44.3 |
|
51.8 |
|
42.9 |
|
22.9 |
|
31.4 |
|
80.3 |
|
33.6 |
|
40.6 |
|
21 |
% |
10 |
% |
|||||||||||||||
| Net Market Gains (Losses) | 103.9 |
|
106.0 |
|
229.8 |
|
31.5 |
|
135.6 |
|
23.6 |
|
143.7 |
|
(267.1 |
) |
345.4 |
|
(95.4 |
) |
139.4 |
|
(367.8 |
) |
(157.8 |
) |
|||||||||||||||||||
| Total Client Assets (at month end) | 6,900.5 |
|
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 |
|
(2 |
%) |
11 |
% |
|||||||||||||||
| Core Net New Assets (2) | 51.4 |
|
62.6 |
|
37.2 |
|
28.1 |
|
43.5 |
|
44.3 |
|
51.8 |
|
42.9 |
|
36.8 |
|
45.1 |
|
80.3 |
|
33.6 |
|
40.6 |
|
21 |
% |
(21 |
%) |
|||||||||||||||
| Receiving Ongoing Advisory Services (at month end) | |||||||||||||||||||||||||||||||||||||||||||||
| Investor Services | 481.3 |
|
495.2 |
|
511.1 |
|
517.8 |
|
525.1 |
|
531.9 |
|
542.5 |
|
530.1 |
|
548.3 |
|
543.1 |
|
559.2 |
|
541.9 |
|
533.7 |
|
(2 |
%) |
11 |
% |
|||||||||||||||
| Advisor Services (3) | 2,913.3 |
|
2,997.9 |
|
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 |
|
(1 |
%) |
15 |
% |
|||||||||||||||
| Client Accounts (at month end, in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
| Active Brokerage Accounts | 31,523 |
|
31,902 |
|
31,877 |
|
32,110 |
|
32,265 |
|
32,386 |
|
32,513 |
|
32,675 |
|
32,796 |
|
32,942 |
|
33,165 |
|
33,308 |
|
33,421 |
|
- |
|
6 |
% |
|||||||||||||||
| Banking Accounts | 1,542 |
|
1,608 |
|
1,562 |
|
1,584 |
|
1,574 |
|
1,578 |
|
1,594 |
|
1,580 |
|
1,593 |
|
1,608 |
|
1,614 |
|
1,628 |
|
1,641 |
|
1 |
% |
6 |
% |
|||||||||||||||
| Corporate Retirement Plan Participants | 2,093 |
|
2,105 |
|
2,116 |
|
2,130 |
|
2,149 |
|
2,159 |
|
2,188 |
|
2,207 |
|
2,213 |
|
2,198 |
|
2,200 |
|
2,216 |
|
2,235 |
|
1 |
% |
7 |
% |
|||||||||||||||
| Client Activity | |||||||||||||||||||||||||||||||||||||||||||||
| New Brokerage Accounts (in thousands) | 1,211 |
|
847 |
|
609 |
|
549 |
|
499 |
|
402 |
|
402 |
|
374 |
|
397 |
|
448 |
|
473 |
|
426 |
|
356 |
|
(16 |
%) |
(71 |
%) |
|||||||||||||||
| Client Cash as a Percentage of Client Assets (4) | 11.8 |
% |
11.5 |
% |
10.9 |
% |
10.8 |
% |
10.5 |
% |
10.4 |
% |
10.3 |
% |
10.8 |
% |
10.4 |
% |
10.5 |
% |
10.9 |
% |
11.3 |
% |
11.5 |
% |
20 bp | (30) bp | |||||||||||||||||
| Derivative Trades as a Percentage of Total Trades | 16.6 |
% |
18.5 |
% |
20.4 |
% |
20.9 |
% |
20.6 |
% |
22.2 |
% |
23.1 |
% |
23.1 |
% |
22.5 |
% |
23.4 |
% |
23.0 |
% |
22.4 |
% |
24.0 |
% |
160 bp | 740 bp | |||||||||||||||||
| Selected Average Balances (in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
| Average Interest-Earning Assets (5) | 514,885 |
|
520,074 |
|
527,194 |
|
528,642 |
|
536,146 |
|
546,579 |
|
552,372 |
|
565,379 |
|
574,181 |
|
584,362 |
|
605,709 |
|
622,997 |
|
629,042 |
|
1 |
% |
22 |
% |
|||||||||||||||
| Average Margin Balances | 69,064 |
|
71,266 |
|
72,863 |
|
75,921 |
|
78,410 |
|
79,910 |
|
81,021 |
|
81,705 |
|
83,835 |
|
87,311 |
|
88,328 |
|
86,737 |
|
84,354 |
|
(3 |
%) |
22 |
% |
|||||||||||||||
| Average Bank Deposit Account Balances (6) | 167,433 |
|
164,866 |
|
162,392 |
|
160,459 |
|
161,377 |
|
151,275 |
|
150,896 |
|
152,330 |
|
154,040 |
|
153,877 |
|
154,918 |
|
157,706 |
|
153,824 |
|
(2 |
%) |
(8 |
%) |
|||||||||||||||
| Mutual Fund and Exchange-Traded Fund | |||||||||||||||||||||||||||||||||||||||||||||
| Net Buys (Sells) (7,8) (in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
| Equities | 14,246 |
|
16,301 |
|
13,422 |
|
9,854 |
|
10,873 |
|
7,418 |
|
8,808 |
|
7,596 |
|
8,840 |
|
13,099 |
|
11,519 |
|
7,384 |
|
9,371 |
|
|||||||||||||||||||
| Hybrid | 832 |
|
1,133 |
|
877 |
|
1 |
|
390 |
|
666 |
|
569 |
|
335 |
|
81 |
|
308 |
|
(1,207 |
) |
(367 |
) |
(478 |
) |
|||||||||||||||||||
| Bonds | 9,334 |
|
8,237 |
|
8,940 |
|
5,906 |
|
10,101 |
|
6,917 |
|
8,044 |
|
6,232 |
|
4,425 |
|
4,097 |
|
5,600 |
|
1,804 |
|
(1,973 |
) |
|||||||||||||||||||
| Net Buy (Sell) Activity (in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
| Mutual Funds (7) | 6,273 |
|
6,190 |
|
5,754 |
|
2,022 |
|
5,872 |
|
2,644 |
|
3,876 |
|
(308 |
) |
302 |
|
189 |
|
(2,859 |
) |
(4,961 |
) |
(6,318 |
) |
|||||||||||||||||||
| Exchange-Traded Funds (8) | 18,139 |
|
19,481 |
|
17,485 |
|
13,739 |
|
15,492 |
|
12,357 |
|
13,545 |
|
14,471 |
|
13,044 |
|
17,315 |
|
18,771 |
|
13,782 |
|
13,238 |
|
|||||||||||||||||||
| Money Market Funds | (4,405 |
) |
(4,528 |
) |
(5,153 |
) |
(3,988 |
) |
(3,806 |
) |
(2,501 |
) |
(1,372 |
) |
(1,512 |
) |
(451 |
) |
(1,725 |
) |
(144 |
) |
(1,984 |
) |
(1,086 |
) |
|||||||||||||||||||
| 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. February 2021 includes an outflow of $14.4 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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