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Charles Schwab (SCHW) August Metrics Record Sequential Fall

Zacks Equity Research

The Charles Schwab Corporation SCHW has released the monthly activity report for August 2019, which shows decline from the prior month. Total client assets came in at $3.7 trillion, down 1% from the prior month but up 5% from the year-ago month.

Client assets receiving ongoing advisory services were $1.95 trillion, marginally down sequentially but up 5.4% year over year.  Net new assets of $19.9 billion improved 3% from the previous month. Nonetheless, it declined 4% year over year.

Schwab’s average interest earning assets were $265 billion at the end of August, relatively on par with the July 2019 level and up 2% from August 2018. The company opened 126,000 new brokerage accounts in the reported month, down 2% sequentially and 5% year over year.

Schwab’s active brokerage accounts totaled 12.1 million at the end of August, relatively stable sequentially, and up 7% from the year-ago month. Further, client’s banking accounts were 1.4 million, rising 1% from July 2019 and 7% from August 2018. The number of retirement plan participants was up 1% from the prior-month level and 6% year over year at 1.7 million.

Shares of the company increased 5% year to date compared with the 13.3% growth recorded by the industry.

Currently, Schwab carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Investment Brokers

Interactive Brokers Group, Inc.’s IBKR Electronic Brokerage segment reported a sequential increase in Daily Average Revenue Trades (DARTs) for August 2019. Total client DARTs were 930,000, up 16% from July 2019 and 26% from August 2018. Total customer accounts inched up 1% from the prior month and 17% from the prior-year month to 659,500.

E*TRADE Financial ETFC has reported a rise in DARTs for August. According to its monthly market activity, the company’s DARTs came in at 284,828, up 12% from the previous month and 12% year over year. Notably, derivatives comprised 35% of DARTs in August.

Upcoming Release

LPL Financial Holdings Inc. LPLA is likely to report monthly metrics information soon.

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Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report
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