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Schwab Reports Monthly Activity Highlights

SAN FRANCISCO--(BUSINESS WIRE)--

The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of August 2019 include:

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  • Core net new assets brought to the company by new and existing clients totaled $19.9 billion. Net new assets excluding mutual fund clearing totaled $17.7 billion.
  • Total client assets were $3.72 trillion as of month-end August, up 5% from August 2018 and down 1% compared to July 2019.
  • Average interest-earning assets on the company’s balance sheet were $265.0 billion in August, up 2% from August 2018 and up slightly compared to July 2019.

CFO Peter Crawford commented, “We recently initiated a process to review our cost base to ensure we remain properly positioned to serve clients while navigating a more challenging operating environment. Last Tuesday, we notified our employees that, based on this review, we have decided to eliminate approximately 600 positions, or 3% of our current workforce. Impacted positions span all staffing grades, as well as organizations and locations across the company. These actions are expected to result in pre-tax charges of approximately $60 million in the third quarter of 2019. We view this as a prudent step in managing expenses while continuing to invest in important initiatives to enhance growth, drive greater efficiency, and improve the client experience. Guided by our ‘Through Clients’ Eyes’ strategy, we remain committed to offering our ‘no trade-offs’ combination of value, service, transparency, and trust, regardless of the environment.”

About Charles Schwab

The Charles Schwab Corporation (SCHW) is a leading provider of financial services, with more than 365 offices and 12.1 million active brokerage accounts, 1.7 million corporate retirement plan participants, 1.4 million banking accounts, and $3.72 trillion in client assets as of August 31, 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 Monthly Activity Report For August 2019
 

2018

2019

Change
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Mo. Yr.
Market Indices (at month end)
Dow Jones Industrial Average

25,965

 

26,458

 

25,116

 

25,538

 

23,327

 

25,000

 

25,916

 

25,929

 

26,593

 

24,815

 

26,600

 

26,864

 

26,403

 

(2%)

 

2%

Nasdaq Composite

8,110

 

8,046

 

7,306

 

7,331

 

6,635

 

7,282

 

7,533

 

7,729

 

8,095

 

7,453

 

8,006

 

8,175

 

7,963

 

(3%)

 

(2%)

Standard & Poor’s 500

2,902

 

2,914

 

2,712

 

2,760

 

2,507

 

2,704

 

2,784

 

2,834

 

2,946

 

2,752

 

2,942

 

2,980

 

2,926

 

(2%)

 

1%

Client Assets (in billions of dollars)

 

 

 

Beginning Client Assets

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

 

3,746.7

 

 

 

 

Net New Assets

20.8

 

16.4

 

14.9

 

15.6

 

24.8

 

15.1

 

18.3

 

18.3

 

(0.3

)

17.3

 

20.2

 

19.3

 

19.9

 

3%

 

(4%)

Net Market Gains (Losses)

57.2

 

(8.6

)

(190.5

)

28.2

 

(204.5

)

180.4

 

67.0

 

34.1

 

83.4

 

(155.2

)

151.6

 

25.0

 

(50.1

)

 

 

 

Total Client Assets (at month end)

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

 

3,746.7

 

3,716.5

 

(1%)

 

5%

Core Net New Assets (1)

20.8

 

16.4

 

14.9

 

15.6

 

24.8

 

15.1

 

18.3

 

18.3

 

(0.3

)

17.3

 

20.2

 

19.3

 

19.9

 

3%

 

(4%)

Receiving Ongoing Advisory Services (at month end)

 

 

 

Investor Services

292.0

 

292.7

 

280.3

 

284.7

 

272.4

 

286.9

 

294.2

 

298.4

 

305.7

 

298.5

 

311.6

 

314.8

 

314.2

 

-

 

8%

Advisor Services (2)

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

 

1,646.1

 

1,635.7

 

(1%)

 

5%

Client Accounts (at month end, in thousands)

 

 

 

Active Brokerage Accounts (3)

11,310

 

11,423

 

11,479

 

11,529

 

11,593

 

11,653

 

11,712

 

11,787

 

11,870

 

11,929

 

11,967

 

12,026

 

12,085

 

-

 

7%

Banking Accounts (4)

1,274

 

1,283

 

1,289

 

1,297

 

1,302

 

1,312

 

1,313

 

1,300

 

1,310

 

1,323

 

1,336

 

1,352

 

1,361

 

1%

 

7%

Corporate Retirement Plan Participants

1,621

 

1,627

 

1,634

 

1,639

 

1,655

 

1,679

 

1,685

 

1,684

 

1,690

 

1,699

 

1,698

 

1,701

 

1,711

 

1%

 

6%

Client Activity

 

 

 

New Brokerage Accounts (in thousands)

132

 

119

 

133

 

115

 

132

 

131

 

115

 

140

 

147

 

123

 

116

 

129

 

126

 

(2%)

 

(5%)

Inbound Calls (in thousands)

1,964

 

1,715

 

1,976

 

1,681

 

1,839

 

1,924

 

1,742

 

1,882

 

1,966

 

1,671

 

1,595

 

1,773

 

1,759

 

(1%)

 

(10%)

Web Logins (in thousands)

62,797

 

53,923

 

59,261

 

54,654

 

53,920

 

64,563

 

60,121

 

63,692

 

65,669

 

61,522

 

60,824

 

65,809

 

63,928

 

(3%)

 

2%

Client Cash as a Percentage of Client Assets (5)

10.4

%

10.3

%

11.1

%

11.2

%

12.8

%

11.7

%

11.5

%

11.3

%

10.9

%

11.3

%

10.9

%

11.0

%

11.3

%

30 bp

 

90 bp

Mutual Fund and Exchange-Traded Fund

 

 

 

Net Buys (Sells) (6, 7) (in millions of dollars)

 

 

 

Large Capitalization Stock

918

 

311

 

308

 

331

 

717

 

1,343

 

1,109

 

1,045

 

980

 

1,114

 

206

 

717

 

328

 

 

 

 

Small / Mid Capitalization Stock

(186

)

151

 

(1,344

)

(456

)

(1,414

)

1,329

 

638

 

302

 

136

 

(190

)

18

 

10

 

(374

)

 

 

 

International

186

 

(88

)

(109

)

(418

)

(2,163

)

2,212

 

1,086

 

1,274

 

863

 

(100

)

225

 

744

 

(1,390

)

 

 

 

Specialized

(245

)

73

 

(914

)

(397

)

(2,105

)

124

 

609

 

750

 

(109

)

(440

)

341

 

418

 

353

 

 

 

 

Hybrid

(678

)

(324

)

(1,313

)

(1,248

)

(2,985

)

(321

)

(309

)

(357

)

(228

)

(316

)

(181

)

(366

)

(569

)

 

 

 

Taxable Bond

965

 

1,371

 

(351

)

(836

)

(4,342

)

3,956

 

2,871

 

1,923

 

3,029

 

1,821

 

2,378

 

3,806

 

2,725

 

 

 

 

Tax-Free Bond

559

 

262

 

(591

)

(407

)

(409

)

1,184

 

1,111

 

1,133

 

760

 

1,057

 

682

 

960

 

760

 

 

 

 

Net Buy (Sell) Activity (in millions of dollars)

 

 

 

Mutual Funds (6)

(1,936

)

(1,538

)

(5,734

)

(7,955

)

(21,372

)

6,740

 

2,312

 

1,850

 

1,860

 

86

 

7

 

2,151

 

(1,281

)

 

 

 

Exchange-Traded Funds (7)

3,455

 

3,294

 

1,420

 

4,524

 

8,671

 

3,087

 

4,803

 

4,220

 

3,571

 

2,860

 

3,662

 

4,138

 

3,114

 

 

 

 

Money Market Funds

704

 

(1,933

)

2,546

 

8,515

 

13,548

 

4,944

 

(1,577

)

1,785

 

(2,097

)

5,067

 

4,570

 

6,143

 

6,068

 

 

 

 

Average Interest-Earning Assets (8)

 

 

 

(in millions of dollars)

259,137

 

261,741

 

264,156

 

265,648

 

274,913

 

277,068

 

270,718

 

272,727

 

270,308

 

263,718

 

262,759

 

263,993

 

265,005

 

-

 

2%

(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.

 

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