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Schwab (SCHW) Records a Fall in November Core Net New Assets
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Charles Schwab (SCHW - Free Report) released its monthly activity report for November 2022. Core net new assets were $33.1 billion in the reported month, down 21% sequentially and 27% year over year. The decline was likely due to a not-so-impressive market performance.
Total client assets were $7.32 trillion, up 5% from October 2022 but down 8% from November 2021. Likewise, client assets receiving ongoing advisory services were $3.78 trillion, rising 5% from the prior month but decreasing 3% year over year.
Schwab’s average interest-earning assets of $527 billion in the reported month declined 5% from October 2022 and 10% year over year. Average margin balances were $66 billion, decreasing 5% from the previous month and 24% on a year-over-year basis. Average bank deposit account balances totaled $130.5 billion, down 4% sequentially and 15% from November 2021.
Schwab opened 303,000 new brokerage accounts in November 2022, rising 2% sequentially but falling 32% from the year-earlier month.
Schwab’s active brokerage accounts totaled 33.6 million at the end of November 2022, which declined 1% sequentially but rose 2% from the year-ago month. Clients’ banking accounts were 1.71 million, stable sequentially and up 6% from November 2021. The number of corporate retirement plan participants was up 1% from the prior-month level and 6% year over year to 2.34 million.
Schwab’s inorganic growth efforts have reinforced its position as a leading brokerage player and are expected to be accretive to earnings. By offering commission-free trading, the company has witnessed a rise in client assets and brokerage accounts, which is improving its market share.
Over the past six months, shares of Schwab have rallied 28.5%, outperforming the 23.6% rise of the industry.
Interactive Brokers Group, Inc. (IBKR - Free Report) released the Electronic Brokerage segment’s performance metrics for November 2022. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported a decline in client Daily Average Revenue Trades (DARTs) on a sequential and a year-over-year basis.
IBKR’s total client DARTs were 1,952,000, down 1% from the October 2022 level and 30% year over year. On an annualized basis, IBKR recorded Cleared Average DARTs per customer account of 214,000. The metric decreased 2% sequentially and 45% from the prior-year period.
LPL Financial Holdings Inc.’s (LPLA - Free Report) total brokerage and advisory assets were $1.14 trillion at the end of November 2022, increasing 4.5% from the prior month but down 3% year over year. The rise in LPLA’s assets balance from the October 2022 level was mainly driven by upbeat market performance. Of LPLA’s total assets, brokerage assets were $536.9 billion and advisory assets totaled $599 billion.
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Schwab (SCHW) Records a Fall in November Core Net New Assets
Charles Schwab (SCHW - Free Report) released its monthly activity report for November 2022. Core net new assets were $33.1 billion in the reported month, down 21% sequentially and 27% year over year. The decline was likely due to a not-so-impressive market performance.
Total client assets were $7.32 trillion, up 5% from October 2022 but down 8% from November 2021. Likewise, client assets receiving ongoing advisory services were $3.78 trillion, rising 5% from the prior month but decreasing 3% year over year.
Schwab’s average interest-earning assets of $527 billion in the reported month declined 5% from October 2022 and 10% year over year. Average margin balances were $66 billion, decreasing 5% from the previous month and 24% on a year-over-year basis. Average bank deposit account balances totaled $130.5 billion, down 4% sequentially and 15% from November 2021.
Schwab opened 303,000 new brokerage accounts in November 2022, rising 2% sequentially but falling 32% from the year-earlier month.
Schwab’s active brokerage accounts totaled 33.6 million at the end of November 2022, which declined 1% sequentially but rose 2% from the year-ago month. Clients’ banking accounts were 1.71 million, stable sequentially and up 6% from November 2021. The number of corporate retirement plan participants was up 1% from the prior-month level and 6% year over year to 2.34 million.
Schwab’s inorganic growth efforts have reinforced its position as a leading brokerage player and are expected to be accretive to earnings. By offering commission-free trading, the company has witnessed a rise in client assets and brokerage accounts, which is improving its market share.
Over the past six months, shares of Schwab have rallied 28.5%, outperforming the 23.6% rise of the industry.
Image Source: Zacks Investment Research
Currently, Schwab carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Interactive Brokers Group, Inc. (IBKR - Free Report) released the Electronic Brokerage segment’s performance metrics for November 2022. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported a decline in client Daily Average Revenue Trades (DARTs) on a sequential and a year-over-year basis.
IBKR’s total client DARTs were 1,952,000, down 1% from the October 2022 level and 30% year over year. On an annualized basis, IBKR recorded Cleared Average DARTs per customer account of 214,000. The metric decreased 2% sequentially and 45% from the prior-year period.
LPL Financial Holdings Inc.’s (LPLA - Free Report) total brokerage and advisory assets were $1.14 trillion at the end of November 2022, increasing 4.5% from the prior month but down 3% year over year. The rise in LPLA’s assets balance from the October 2022 level was mainly driven by upbeat market performance. Of LPLA’s total assets, brokerage assets were $536.9 billion and advisory assets totaled $599 billion.