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Schwab's (SCHW) January Metrics Show Sequential Improvement

Zacks Equity Research

Charles Schwab’s SCHW monthly activity for January 2019 reflects mixed results. Total client assets came in at $3.5 trillion at the end of the month, decreasing 1% from the year-ago month but increasing 6% from the prior month.

Client assets receiving ongoing advisory services were $1.8 trillion, up 2% year over year and 5% sequentially. Schwab’s average interest earning assets came in at $277.1 billion at the end of January, improving 18% year over year and 1% from December 2018.

Net new assets, through existing and new clients, totaled $15.1 billion, up 31% from January 2018 but down 39% from December 2018. However, new brokerage accounts opened by the company in January 2019 were down 21% year over year and 1% from the last month to 131,000.

Schwab’s active brokerage accounts totaled 11.7 million at the end of the month, up 7% from January 2018 and 1% sequentially. Further, client’s banking accounts were 1.3 million, rising 8% from the year-ago quarter and 1% from December 2018. The number of retirement plan participants rose 6% year over year and 1% sequentially to 1.7 million.

Shares of Schwab have lost 13.1% over the past year compared with 20.1% decline for the industry.



Schwab currently 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

E*TRADE Financial ETFC reported a decline in Daily Average Revenue Trades (DARTs) for January 2019. Per its monthly market activity, DARTs came in at 282,499, down 9% from the previous month and 10% year over year. Derivatives comprised 33% of DARTs in January.

Interactive Brokers Group, Inc.’s IBKR Electronic Brokerage segment reported year-over-year fall in DARTs for January 2019. Total client DARTs came in at 851,000, down 6% from January 2018 and 11% from December 2018.

LPL Financial Holdings LPLA is likely to report monthly activity for January soon.

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LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report
 
Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report
 
E*TRADE Financial Corporation (ETFC) : Free Stock Analysis Report
 
The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
 
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