WESTLAKE, Texas–(BUSINESS WIRE)–The Charles Schwab Corporation today released its monthly business report. Company highlights for the month of October 2022 include:
-
Net new base assets contributed to the company by new and existing customers totaled $42.0 billion. Net new assets excluding mutual fund compensation totaled $33.9 billion.
-
Total client assets stood at $7 trillion at the end of October, down 12% from October 2021 and up 5% from September 2022.
-
Average interest-earning assets were $552.6 billion in October, down 4% from October 2021 and 3% from September 2022, in line with our expectations for the year described in the Fall 2022 Activity Update.
About Charles Schwab
Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 33.9 million active brokerage accounts, 2.3 million corporate pension plan members, 1.7 million bank accounts and $7 trillion in client assets as of October 31, 2022. its operating subsidiaries, the company offers a full range of wealth management, securities brokerage, banking, asset management, custody and financial advice to individual investors and independent investment advisers. Its brokerage subsidiaries, Charles Schwab & Co., Inc., TD Ameritrade, Inc. and TD Ameritrade Clearing, Inc. (members SIPC, https://www.sipc.org) and their affiliates offer a full range of investment services and products, including a wide selection of mutual funds; financial planning and investment advice; pension plan and equity compensation plan services; referrals to paid independent investment advisers; and custody, operations and trading support for fee-based independent investment advisors through Schwab Advisor Services. Its main banking subsidiary, Charles Schwab Bank, SSB (Member FDIC and 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.
| Charles Schwab Corporation Monthly Activity Report for October 2022 | |||||||||||||||||||||||||||||||||||||||||||||
|
2021 |
2022 |
To change | |||||||||||||||||||||||||||||||||||||||||||
| Oct | Nov | Dec | Jan | Feb | Tue | Apr | May | June | Jul | August | Sep | Oct | Mo. | Year. | |||||||||||||||||||||||||||||||
| Market indices (at the end of the month) | |||||||||||||||||||||||||||||||||||||||||||||
| Dow Jones Industrial Average® |
35,820 |
|
34,484 |
|
36,338 |
|
35 132 |
|
33,893 |
|
34,678 |
|
32,977 |
|
32,990 |
|
30,775 |
|
32,845 |
|
31,510 |
|
28,726 |
|
32,733 |
|
14 |
% |
(9 |
%) |
|||||||||||||||
| Nasdaq Compound® |
15,498 |
|
15,538 |
|
15,645 |
|
14,240 |
|
13,751 |
|
14,221 |
|
12,335 |
|
12,081 |
|
11,029 |
|
12,391 |
|
11,816 |
|
10,576 |
|
10,988 |
|
4 |
% |
(29 |
%) |
|||||||||||||||
| Standard & Poor’s® 500 |
4,605 |
|
4,567 |
|
4,766 |
|
4,516 |
|
4,374 |
|
4,530 |
|
4,132 |
|
4,132 |
|
3,785 |
|
4,130 |
|
3,955 |
|
3,586 |
|
3,872 |
|
8 |
% |
(16 |
%) |
|||||||||||||||
| Customer assets (in billions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
| Beginner Client Assets |
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 |
|
6,832.5 |
|
7,304.8 |
|
7,127.6 |
|
6,644.2 |
|
|||||||||||||||||||
| Net new assets (1) |
22.9 |
|
31.4 |
|
80.3 |
|
33.6 |
|
40.6 |
|
46.3 |
|
(9.2 |
) |
32.8 |
|
19.8 |
|
31.5 |
|
43.3 |
|
39.8 |
|
42.0 |
|
6 |
% |
83 |
% |
|||||||||||||||
| Net market gains (losses) |
345.4 |
|
(95.4 |
) |
139.4 |
|
(367.8 |
) |
(157.8 |
) |
129.2 |
|
(568.5 |
) |
(15.5 |
) |
(489.0 |
) |
440.8 |
|
(220.5 |
) |
(523.2 |
) |
318.4 |
|
|||||||||||||||||||
| Total Client Assets (at the end of the month) |
7,982.3 |
|
7,918.3 |
|
8,138.0 |
|
7,803.8 |
|
7,686.6 |
|
7,862.1 |
|
7,284.4 |
|
7,301.7 |
|
6,832.5 |
|
7,304.8 |
|
7,127.6 |
|
6,644.2 |
|
7,004.6 |
|
5 |
% |
(12 |
%) |
|||||||||||||||
| New core net assets (2) |
36.8 |
|
45.1 |
|
80.3 |
|
33.6 |
|
40.6 |
|
46.3 |
|
(9.2 |
) |
32.8 |
|
40.6 |
|
31.5 |
|
43.3 |
|
39.8 |
|
42.0 |
|
6 |
% |
14 |
% |
|||||||||||||||
| Receive ongoing advisory services (at the end of the month) | |||||||||||||||||||||||||||||||||||||||||||||
| Investor services |
548.3 |
|
543.1 |
|
559.2 |
|
541.9 |
|
533.7 |
|
538.9 |
|
509.3 |
|
513.0 |
|
483.8 |
|
514.8 |
|
499.2 |
|
466.6 |
|
487.3 |
|
4 |
% |
(11 |
%) |
|||||||||||||||
| Advisor Services (3) |
3,399.8 |
|
3,374.3 |
|
3,505.2 |
|
3,382.4 |
|
3,342.5 |
|
3,404.6 |
|
3,190.5 |
|
3,213.8 |
|
3,040.4 |
|
3,222.5 |
|
3,150.5 |
|
2,950.9 |
|
3,106.0 |
|
5 |
% |
(9 |
%) |
|||||||||||||||
| Accounts (at the end of the month, in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
| Active brokerage accounts (4) |
32,796 |
|
32,942 |
|
33,165 |
|
33,308 |
|
33,421 |
|
33,577 |
|
33,759 |
|
33,822 |
|
33,896 |
|
33,934 |
|
33,984 |
|
33,875 |
|
33,896 |
|
– |
|
3 |
% |
|||||||||||||||
| Bank accounts |
1,593 |
|
1,608 |
|
1,614 |
|
1,628 |
|
1,641 |
|
1,641 |
|
1,652 |
|
1,658 |
|
1,669 |
|
1,680 |
|
1,690 |
|
1,696 |
|
1,706 |
|
1 |
% |
seven |
% |
|||||||||||||||
| Company pension plan participants |
2,213 |
|
2,198 |
|
2,200 |
|
2,216 |
|
2,235 |
|
2,246 |
|
2,261 |
|
2,275 |
|
2,275 |
|
2,267 |
|
2,285 |
|
2,305 |
|
2,322 |
|
1 |
% |
5 |
% |
|||||||||||||||
| Customer activity | |||||||||||||||||||||||||||||||||||||||||||||
| New brokerage accounts (in thousands) |
397 |
|
448 |
|
473 |
|
426 |
|
356 |
|
420 |
|
386 |
|
323 |
|
305 |
|
278 |
|
332 |
|
287 |
|
298 |
|
4 |
% |
(25 |
%) |
|||||||||||||||
| Client’s cash as a percentage of client’s assets (5) |
10.4 |
% |
10.5 |
% |
10.9 |
% |
11.3 |
% |
11.5 |
% |
11.4 |
% |
11.9 |
% |
12.0 |
% |
12.8 |
% |
12.0 |
% |
12.1 |
% |
12.9 |
% |
12.2 |
% |
(70) bp | 180 bp | |||||||||||||||||
| Derivative transactions as a percentage of total transactions |
22.5 |
% |
23.4 |
% |
23.0 |
% |
22.4 |
% |
24.0 |
% |
22.4 |
% |
21.9 |
% |
22.6 |
% |
22.3 |
% |
24.2 |
% |
23.3 |
% |
23.6 |
% |
24.1 |
% |
50 bp | 160 bp | |||||||||||||||||
| Selected average balances (in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
| Average interest-earning assets (6) |
574 181 |
|
584,362 |
|
605 709 |
|
622,997 |
|
629,042 |
|
644 768 |
|
636 668 |
|
620 157 |
|
614 100 |
|
605 751 |
|
586 154 |
|
568,351 |
|
552 631 |
|
(3 |
%) |
(4 |
%) |
|||||||||||||||
| Average Margin Balances |
83,835 |
|
87,311 |
|
88,328 |
|
86,737 |
|
84,354 |
|
81,526 |
|
83,762 |
|
78,841 |
|
74,577 |
|
72 177 |
|
72,855 |
|
73,224 |
|
69 188 |
|
(6 |
%) |
(17 |
%) |
|||||||||||||||
| Average bank deposit account balances (seven) |
154,040 |
|
153,877 |
|
154,918 |
|
157,706 |
|
153,824 |
|
155,657 |
|
152,653 |
|
154,669 |
|
155,306 |
|
154,542 |
|
148,427 |
|
141 198 |
|
136,036 |
|
(4 |
%) |
(12 |
%) |
|||||||||||||||
| Mutual fund and exchange-traded fund | |||||||||||||||||||||||||||||||||||||||||||||
| Net purchases (sales) (8.9) (in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
| Shares |
8,840 |
|
13,099 |
|
11,519 |
|
7,384 |
|
9,371 |
|
14,177 |
|
(786 |
) |
1,889 |
|
(1,586 |
) |
5,589 |
|
10,465 |
|
(2,662 |
) |
3,984 |
|
|||||||||||||||||||
| Hybrid |
81 |
|
308 |
|
(1,207 |
) |
(367 |
) |
(478 |
) |
(four hundred ninety seven |
) |
(529 |
) |
(1,718 |
) |
(1,054 |
) |
(2,041 |
) |
(783 |
) |
(938 |
) |
(1,380 |
) |
|||||||||||||||||||
| Obligations |
4,425 |
|
4,097 |
|
5,600 |
|
1,804 |
|
(1,973 |
) |
(7,851 |
) |
(6,933 |
) |
(6,121 |
) |
(5,631 |
) |
729 |
|
(141 |
) |
(5,801 |
) |
(7,218 |
) |
|||||||||||||||||||
| Net buying (selling) activity (in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
| Mutual fund (8) |
302 |
|
189 |
|
(2,859 |
) |
(4,961 |
) |
(6,318 |
) |
(11,888 |
) |
(16,657 |
) |
(20,761 |
) |
(16,258 |
) |
(8,674 |
) |
(7,117 |
) |
(15,200 |
) |
(18,473 |
) |
|||||||||||||||||||
| exchange traded funds (9) |
13,044 |
|
17,315 |
|
18,771 |
|
13,782 |
|
13,238 |
|
17,717 |
|
8,409 |
|
14,811 |
|
7,987 |
|
12,951 |
|
16,658 |
|
5,799 |
|
13,859 |
|
|||||||||||||||||||
| Money market funds |
(451 |
) |
(1,725 |
) |
(144 |
) |
(1,984 |
) |
(1,086 |
) |
(1,344 |
) |
(3,430 |
) |
7,106 |
|
11,544 |
|
13,711 |
|
19,702 |
|
17,018 |
|
21,542 |
|
|||||||||||||||||||
| Note: Some additional details related to the above information can be found at: https://www.aboutschwab.com/financial-reports. | ||
|
(1) |
June 2022 includes a $20.8 billion cash outflow from a mutual fund clearing services client. November 2021 includes a $13.7 billion cash outflow from a mutual fund clearing services client. October 2021 includes a $13.9 billion cash outflow from a mutual fund clearing services client. | |
|
(2) |
Net new assets before significant one-time inflows or outflows, such as acquisitions/disposals or extraordinary flows (generally greater than $10 billion) related to a specific customer. These flows can cover several reporting periods. | |
|
(3) |
Excludes pension business services. | |
|
(4) |
September 2022 includes the company-initiated closure of approximately 152,000 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 the average total of interest-earning assets on the company’s balance sheet. | |
|
(seven) |
Represents the average uninvested cash transfer account balances of TD Ameritrade customers held in deposit accounts with third-party financial institutions. | |
|
(8) |
Represents the principal value of clients’ mutual fund transactions processed by Schwab, including transactions in equity. Includes institutional funds available only to investment managers. Excludes transactions in money market funds. | |
|
(9) |
Represents the primary value of customer ETF transactions processed by Schwab, including proprietary ETF transactions. |