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Schwab (SCHW) May Net New Assets Up, Q2 Revenue View Affirmed
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Charles Schwab (SCHW - Free Report) has reported its monthly activity report for May 2024. The company’s core net new assets of $31 billion surged substantially from $1 billion recorded in the previous month and 50% from the prior-year month.
Schwab’s total client assets in May 2024 were $9.21 trillion, up 4% from the April 2024 level and 20% from May 2023. Client assets receiving ongoing advisory services were $5.25 trillion, rising 17% from the prior month and 35% year over year.
Schwab’s average interest-earning assets of $416 billion in May declined 2% from the April 2024 level and 14% year over year. Average margin balances were $67.6 billion, down 2% from the previous month’s level but up 12% on a year-over-year basis. Average bank deposit account balances totaled $86.8 billion in May, down 2% from last month’s level and 12% from May 2023.
Further, Schwab opened 214,000 new brokerage accounts in April 2024, down 13% sequentially and on par with the year-earlier month.
Schwab’s active brokerage accounts totaled 35.5 million at the end of May 2024, which was stable on a sequential basis and up 4% from the year-ago month. Client banking accounts were 1.92 million, up 1% sequentially and 8% from the May 2023 figure. The number of workplace plan participant accounts was up 1% from the prior month and 8% year over year to 5.35 million.
Besides this, Schwab reiterated its second-quarter 2024 revenue and pre-tax margin targets, which were earlier disclosed during the Institutional Investor Day on May 22. The company anticipates total revenues to decrease 1-2% sequentially and an adjusted pre-tax profit margin of approximately 40%. These reflect “anticipated impact of tax season on transactional sweep cash as well as expected trading volumes.”
In the past three months, Schwab shares have rallied 8.7% compared with the industry’s rise of 8.6%.
Interactive Brokers Group, Inc. (IBKR - Free Report) released the Electronic Brokerage segment’s performance metrics for May 2024. The segment deals with the clearance and settlement of trades for individual and institutional clients globally. It reported a rise in client Daily Average Revenue Trades (DARTs).
IBKR’s total client DARTs for May were 2,360,000, which increased 27% from May 2023 and 1% from the last month.
Another brokerage firm, LPL Financial (LPLA - Free Report) , is expected to come out with its monthly activity report soon.
Currently, IBKR carries a Zacks Rank #2 (Buy) and LPLA has a Zacks Rank of 3.
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Schwab (SCHW) May Net New Assets Up, Q2 Revenue View Affirmed
Charles Schwab (SCHW - Free Report) has reported its monthly activity report for May 2024. The company’s core net new assets of $31 billion surged substantially from $1 billion recorded in the previous month and 50% from the prior-year month.
Schwab’s total client assets in May 2024 were $9.21 trillion, up 4% from the April 2024 level and 20% from May 2023. Client assets receiving ongoing advisory services were $5.25 trillion, rising 17% from the prior month and 35% year over year.
Schwab’s average interest-earning assets of $416 billion in May declined 2% from the April 2024 level and 14% year over year. Average margin balances were $67.6 billion, down 2% from the previous month’s level but up 12% on a year-over-year basis. Average bank deposit account balances totaled $86.8 billion in May, down 2% from last month’s level and 12% from May 2023.
Further, Schwab opened 214,000 new brokerage accounts in April 2024, down 13% sequentially and on par with the year-earlier month.
Schwab’s active brokerage accounts totaled 35.5 million at the end of May 2024, which was stable on a sequential basis and up 4% from the year-ago month. Client banking accounts were 1.92 million, up 1% sequentially and 8% from the May 2023 figure. The number of workplace plan participant accounts was up 1% from the prior month and 8% year over year to 5.35 million.
Besides this, Schwab reiterated its second-quarter 2024 revenue and pre-tax margin targets, which were earlier disclosed during the Institutional Investor Day on May 22. The company anticipates total revenues to decrease 1-2% sequentially and an adjusted pre-tax profit margin of approximately 40%. These reflect “anticipated impact of tax season on transactional sweep cash as well as expected trading volumes.”
In the past three months, Schwab shares have rallied 8.7% compared with the industry’s rise of 8.6%.
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 Group, Inc. (IBKR - Free Report) released the Electronic Brokerage segment’s performance metrics for May 2024. The segment deals with the clearance and settlement of trades for individual and institutional clients globally. It reported a rise in client Daily Average Revenue Trades (DARTs).
IBKR’s total client DARTs for May were 2,360,000, which increased 27% from May 2023 and 1% from the last month.
Another brokerage firm, LPL Financial (LPLA - Free Report) , is expected to come out with its monthly activity report soon.
Currently, IBKR carries a Zacks Rank #2 (Buy) and LPLA has a Zacks Rank of 3.