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Schwab's (SCHW) July Metrics Improve as Markets Appreciate

Charles Schwab SCHW released its activity report for July 2021. Total client assets were $7.64 trillion, up 1% from June 2021 and 79% from July 2020. Client assets receiving ongoing advisory services were $3.7884 trillion, up 1% from the prior month and 74% year over year.

Net new assets were $44.3 billion during the reported month. This was up 2% from June 2021-level and grew substantially from the end of the prior-year month level of $11.4 billion.
Schwab’s average interest-earning assets of $546.6 billion rose 2% from June 2021 and 44% year over year. Average margin balances of $79.9 billion increased 2% from the previous month and were up significantly year over year. Average bank deposit account balances totaled $151.3 billion, down 6% from the previous month.

Schwab opened 402,000 new brokerage accounts in July 2021, down 19% from the prior month but up 95% from the year-earlier month.

Schwab’s active brokerage accounts totaled 32.4 million at the end of July, relatively stable sequentially and up significantly from the year-ago month. Further, clients’ banking accounts were 1.6 million, almost stable on a sequential basis and up 7% from July 2020. Likewise, the number of retirement plan participants was on par with the prior month level and grew 26% year over year to 2.2 million.

Schwab’s acquisitions have reinforced its position as a leading brokerage player and will be 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 39.6% compared with 39.5% 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 July 2021. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported a 32 year-over-year rise in client Daily Average Revenue Trades to 2,363,000.

Tradeweb Markets Inc. TW reported total trading volume of $20.6 trillion in July 2021. Average daily volumes were $972.2 billion, up 34.2% 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
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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