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Schwab's (SCHW) August Metrics Improve on Favorable Markets

Charles Schwab SCHW released its activity report for August 2021. Total client assets were $7.84 trillion, up 3% from July 2021 and 75% from August 2020. Client assets receiving ongoing advisory services were $3.88 trillion, up 2% from the prior month and 71% year over year.

Net new assets were $51.8 billion during the reported month. This reflected an increase of 17% from the previous month. In the prior-year comparable month, net new assets were $20 billion.

Schwab’s average interest-earning assets of $552.4 billion rose 1% from July 2021 and 44% year over year. Average margin balances were $79.8 billion, almost stable compared to the previous month. On a year-over-year basis, the figure increased significantly. Average bank deposit account balances totaled $150.9 billion, down marginally from the previous month.

Schwab opened 402,000 new brokerage accounts in August 2021, unchanged from July 2021 but up 99% from the year-earlier month.

Schwab’s active brokerage accounts totaled 32.5 million at the end of August 2021, relatively stable sequentially but up significantly from the year-ago month. Clients’ banking accounts were 1.6 million, up 1% on a sequential basis and 7% from August 2020. Likewise, the number of corporate retirement plan participants was up 1% from the prior month level and grew 28% year over year to 2.2 million.

The acquisitions undertaken by Schwab have reinforced its position as a leading brokerage player and are expected to prove accretive to earnings. 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 34.2% compared with 33.5% growth 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.

Performance of Other Brokers

Interactive Brokers Group IBKR released the Electronic Brokerage segment’s performance metrics for August 2021. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported a 24% year-over-year rise in client Daily Average Revenue Trades to 2,170,000.

Tradeweb Markets Inc. TW reported total trading volume of $19.8 trillion in August 2021. Average daily volumes were $900.4 billion, up 20.6% year over year.

LPL Financial Holdings Inc. LPLA is likely to report monthly figures soon.


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The Charles Schwab Corporation (SCHW): Free Stock Analysis Report
 
Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report
 
Tradeweb Markets Inc. (TW): Free Stock Analysis Report
 
LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report
 
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