Schwab's (SCHW) May Metrics Improve as Markets Appreciate
Charles Schwab SCHW released its activity report for May 2021. Total client assets were $7.40 trillion, up 1% from April 2021 and 84% from May 2020. Client assets receiving ongoing advisory services were $3.67 trillion, up 1% from the prior month and 79% year over year.
Net new assets were $28.1 billion, down 24% from April 2021 and 71% from the end of the prior-year month.
Schwab’s average interest-earning assets of $528.6 billion increased marginally from April 2021 and 46% year over year. Average margin balances of $75.9 billion rose 4% from the previous month and were up significantly from the year-ago month. Average bank deposit account balances totaled $160.5 billion, down 1% from the previous month.
Schwab opened 549,000 new brokerage accounts in May 2021, down 10% from the prior month and 56% from the year-earlier month.
Schwab’s active brokerage accounts totaled 32.1 million at the end of May, rising 1% from the previous month and up significantly from the year-ago month. Further, clients’ banking accounts were 1.6 million, rising 1% from April 2021 and up 9% from May 2020. The number of retirement plan participants was 2.1 million, up 1% sequentially and 24% year over year.
Schwab’s acquisitions have reinforced its position as a leading brokerage player and will be accretive to earnings. Further, by offering commission-free trading, the company has been able to witness a rise in client assets and brokerage accounts, which, in turn, is improving its market share.
So far this year, shares of the company have gained 35.8% compared with 35.1% growth recorded by the industry.
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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 Brokers
Interactive Brokers Group IBKR released the Electronic Brokerage segment’s performance metrics for May 2021. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported client Daily Average Revenue Trades of 2,250,000, jumping 37% from May 2020 and 3% from April 2021.
Tradeweb Markets Inc. TW reported total trading volume of $19.6 trillion in May 2021. Average daily volumes were $980.4 billion, up 23.9% year over year.
LPL Financial Holdings Inc. LPLA is likely to come out with May figures soon.
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The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
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