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Schwab's (SCHW) Net New Assets Fall Amid TDA Client Attrition
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Charles Schwab (SCHW - Free Report) released its monthly activity report for October 2023. Because of the temporary attrition of TD Ameritrade (“TDA”) clients and advisors as well as delayed tax disbursements by clients in some states like California, the company’s core net new assets of $11.3 billion plunged 58% from the previous month’s levels and 73% from the prior-year month’s figures.
The company’s total client assets in October 2023 were $7.65 trillion, down 2% from September 2023 levels but up 9% from October 2022 levels. Client assets receiving ongoing advisory services were $3.9 trillion, down 2% from the prior month’s actuals but up 9% year over year.
Schwab’s average interest-earning assets of $438.2 billion in October dropped 1% from September 2023 figures and 21% year over year. Average margin balances were $63.9 billion, relatively stable from the previous month’s level and down 8% on a year-over-year basis. Average bank deposit account balances totaled $97.9 billion, down 3% from the previous month’s actuals and 28% from October 2022 levels.
The company opened 284,000 new brokerage accounts in October 2023, up 3% sequentially but down 5% from the year-earlier month’s figures.
Schwab’s active brokerage accounts totaled 34.6 million at the end of October 2023, which were relatively stable on a sequential basis and grew 2% from the year-ago month’s figures. Client banking accounts were 1.81 million, up 1% sequentially and 6% from the October 2022 figures. The number of workplace plan participant accounts was up 1% from the prior month’s level and up 8% year over year to 5.21 million.
In the past six months, shares of Schwab have gained 9.3%, outperforming the industry’s rise of 1.5%.
Interactive Brokers (IBKR - Free Report) released the Electronic Brokerage segment’s performance metrics for October 2023. The segment deals with the clearance and settlement of trades for individual and institutional clients globally. It reported an increase in client Daily Average Revenue Trades (DARTs) on a sequential basis.
For IBKR, total client DARTs were 1,934,000, which grew 8% from September 2023.
Another brokerage firm, LPL Financial (LPLA - Free Report) , will come out with its monthly activity report in the coming days.
Currently, IBKR carries a Zacks Rank of 2 (Buy), while LPLA has a Zacks Rank #5 (Strong Sell).
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Schwab's (SCHW) Net New Assets Fall Amid TDA Client Attrition
Charles Schwab (SCHW - Free Report) released its monthly activity report for October 2023. Because of the temporary attrition of TD Ameritrade (“TDA”) clients and advisors as well as delayed tax disbursements by clients in some states like California, the company’s core net new assets of $11.3 billion plunged 58% from the previous month’s levels and 73% from the prior-year month’s figures.
The company’s total client assets in October 2023 were $7.65 trillion, down 2% from September 2023 levels but up 9% from October 2022 levels. Client assets receiving ongoing advisory services were $3.9 trillion, down 2% from the prior month’s actuals but up 9% year over year.
Schwab’s average interest-earning assets of $438.2 billion in October dropped 1% from September 2023 figures and 21% year over year. Average margin balances were $63.9 billion, relatively stable from the previous month’s level and down 8% on a year-over-year basis. Average bank deposit account balances totaled $97.9 billion, down 3% from the previous month’s actuals and 28% from October 2022 levels.
The company opened 284,000 new brokerage accounts in October 2023, up 3% sequentially but down 5% from the year-earlier month’s figures.
Schwab’s active brokerage accounts totaled 34.6 million at the end of October 2023, which were relatively stable on a sequential basis and grew 2% from the year-ago month’s figures. Client banking accounts were 1.81 million, up 1% sequentially and 6% from the October 2022 figures. The number of workplace plan participant accounts was up 1% from the prior month’s level and up 8% year over year to 5.21 million.
In the past six months, shares of Schwab have gained 9.3%, outperforming the industry’s rise of 1.5%.
Image Source: Zacks Investment Research
Currently, SCHW 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 (IBKR - Free Report) released the Electronic Brokerage segment’s performance metrics for October 2023. The segment deals with the clearance and settlement of trades for individual and institutional clients globally. It reported an increase in client Daily Average Revenue Trades (DARTs) on a sequential basis.
For IBKR, total client DARTs were 1,934,000, which grew 8% from September 2023.
Another brokerage firm, LPL Financial (LPLA - Free Report) , will come out with its monthly activity report in the coming days.
Currently, IBKR carries a Zacks Rank of 2 (Buy), while LPLA has a Zacks Rank #5 (Strong Sell).