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Schwab's (SCHW) Metrics Indicate Improvement in May

Zacks Equity Research

The Charles Schwab Corporation’s SCHW monthly activity report for May 2017 shows an improvement over the year-ago period. Total client assets were $3 trillion at the end of the month, reflecting an increase of 15%.

Further, client assets receiving ongoing advisory services were $1.52 trillion, up 17% year over year. Also, Schwab’s average interest earning assets were $215.3 billion at the end of May, reflecting 17% increase on a year-over-year basis.

Schwab opened 115,000 new brokerage accounts in May, up 42% from the prior-year month. Net new assets, through both existing and new clients totaled $24 billion, surging 50% year over year.

Schwab’s active brokerage accounts totaled 10.44 million at the end of the month, up 5% from the May 2016 level. The client’s banking accounts at the end of the reported month came in at 1.14 million, increasing 7% from the year-ago period. However, the number of retirement plan participants declined 1% year over year to 1.54 million.

With Schwab slashing trading fees, a further rise in brokerage accounts and client assets is expected. Shares of the company increased 8.9% in the last six months compared with a decline of 1.8% for the Zacks categorized Investment Brokers 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.

Among other brokerage stocks, E*TRADE Financial Corporation ETFC reported an increase in its Daily Average Revenue Trades (DARTs) for May 2017. The company’s DARTs were 211,516, surging 42% year over year.

TD Ameritrade Holding Corporation AMTD reported average client trades per day of 514,000 in its activity report for May 2017. The reported figure was up 16% from the year-ago period.

Interactive Brokers Group, Inc.’s IBKR total client DARTs for May 2017 were 675,000, up 5% from May 2016. Also, total customer accounts increased 19% year over year to 418,000.

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