Schwab Reports Monthly Activity Highlights

Tuesday, August 14, 2018 5:45 am PDT

Dateline:

SAN FRANCISCO

Public Company Information:

NYSE:
SCHW

SAN FRANCISCO--(BUSINESS WIRE)--The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of July 2018 include:

  • Core net new assets brought to the company by new and existing clients in July 2018 totaled $16.3 billion. Net new assets excluding mutual fund clearing totaled $15.8 billion.
  • Total client assets were $3.48 trillion as of month-end July, up 12% from July 2017 and up 2% compared to June 2018.
  • Client assets receiving ongoing advisory services were a record $1.81 trillion as of month-end July, up 15% from July 2017 and up 2% compared to June 2018.

Commentary from the CFO

Peter Crawford, Executive Vice President and Chief Financial Officer, provides perspective on crossing the $250 billion consolidated asset threshold for heightened regulatory requirements at: http://aboutschwab.com/investor-relations/cfo-commentary.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with more than 345 offices and 11.2 million active brokerage accounts, 1.6 million corporate retirement plan participants, 1.3 million banking accounts, and $3.48 trillion in client assets as of July 31, 2018. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, money management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, http://www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at www.schwab.com and www.aboutschwab.com.

 
The Charles Schwab Corporation Monthly Activity Report For July 2018
                               
2017 2018  

Change

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Mo.

Yr.

Market Indices (at month end)
Dow Jones Industrial Average 21,891 21,948 22,405 23,377 24,272 24,719 26,149 25,029 24,103 24,163 24,416 24,271 25,415 5% 16%
Nasdaq Composite 6,348 6,429 6,496 6,728 6,874 6,903 7,411 7,273 7,063 7,066 7,442 7,510 7,672 2% 21%
Standard & Poor’s 500 2,470 2,472 2,519 2,575 2,648 2,674 2,824 2,714 2,641 2,648 2,705 2,718 2,816 4% 14%
Client Assets (in billions of dollars)
Beginning Client Assets 3,040.6 3,099.9 3,122.3 3,181.2 3,256.5 3,318.8 3,361.8 3,480.5 3,328.8 3,305.4 3,312.1 3,378.1 3,397.0
Net New Assets (1) 15.8 18.0 17.8 35.4 15.7 27.0 11.5 (50.5 ) 20.2 0.4 19.4 24.1 16.3 (32%) 3%
Net Market Gains (Losses) 43.5     4.4     41.1     39.9     46.6     16.0     107.2     (101.2 )   (43.6 )   6.3     46.6     (5.2 )   64.6  
Total Client Assets (at month end) 3,099.9     3,122.3     3,181.2     3,256.5     3,318.8     3,361.8     3,480.5     3,328.8     3,305.4     3,312.1     3,378.1     3,397.0     3,477.9   2% 12%
Core Net New Assets (2) 15.8 18.0 17.8 19.2 15.7 27.0 18.7 21.3 25.6 9.9 19.4 24.1 16.3 (32%) 3%
Receiving Ongoing Advisory Services (at month end)
Investor Services 247.2 249.9 255.0 259.8 265.1 268.7 278.6 273.0 273.2 274.7 279.1 280.0 287.0 3% 16%
Advisor Services (3) 1,323.8 1,333.1 1,358.6 1,382.6 1,410.8 1,431.1 1,483.7 1,449.5 1,444.4 1,451.6 1,478.0 1,488.7 1,525.5 2% 15%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts (4) 10,477 10,525 10,565 10,603 10,671 10,755 10,858 10,936 11,005 11,081 11,145 11,202 11,243 - 7%
Banking Accounts 1,154 1,167 1,176 1,181 1,192 1,197 1,210 1,218 1,221 1,230 1,240 1,250 1,262 1% 9%
Corporate Retirement Plan Participants 1,540 1,550 1,552 1,556 1,564 1,568 1,580 1,580 1,594 1,599 1,599 1,599 1,611 1% 5%
Client Activity
New Brokerage Accounts (in thousands) 107 123 106 117 122 147 165 138 140 141 122 121 118 (2%) 10%
Inbound Calls (in thousands) 1,683 1,823 1,709 1,988 1,804 2,046 2,303 2,005 2,145 2,034 1,852 1,814 1,849 2% 10%
Web Logins (in thousands) 42,236 47,290 39,639 51,454 50,583 54,486 64,488 60,830 58,906 55,980 56,234 56,491 57,137 1% 35%

Client Cash as a Percentage of Client Assets (5)

11.3 % 11.4 % 11.1 % 10.9 % 10.8 % 10.8 % 10.4 % 10.9 % 11.0 % 10.9 % 10.6 % 10.7 % 10.5 % (20) bp (80) bp

Mutual Fund and Exchange-Traded Fund

Net Buys (Sells) (6, 7) (in millions of dollars)

Large Capitalization Stock (95 ) (1,683 ) (138 ) (51 ) 85 1,023 496 715 (158 ) 410 953 981 486
Small / Mid Capitalization Stock (139 ) (293 ) 45 378 (144 ) 274 (125 ) (167 ) 130 359 753 1,195 768
International 2,675 1,705 1,549 1,913 2,627 1,852 4,306 2,685 1,546 809 372 (498 ) (529 )
Specialized 236 279 465 655 58 424 1,569 187 326 122 (19 ) 383 520
Hybrid 142 (272 ) 460 (118 ) (263 ) 307 978 (88 ) 529 (541 ) (241 ) (288 ) (548 )
Taxable Bond 3,064 3,481 3,809 3,466 2,389 2,561 3,284 155 2,117 1,661 1,002 928 879
Tax-Free Bond 453 715 494 452 371 341 1,247 211 247 (113 ) 449 588 306

Net Buy (Sell) Activity (in millions of dollars)

Mutual Funds (6) 3,201 1,048 3,002 2,401 882 775 4,843 (417 ) 1,976 (36 ) (88 ) 555 (522 )
Exchange-Traded Funds (7) 3,135 2,884 3,682 4,294 4,241 6,007 6,912 4,115 2,761 2,743 3,357 2,734 2,404
Money Market Funds 1,022 2,105 (374 ) 213 1,166 2,968 (5,730 ) (4,292 ) (9,100 ) (4,156 ) (2,245 ) (4,919 ) (4,801 )
Average Interest-Earning Assets (8)
(in millions of dollars) 212,108 214,458 216,472 219,658 223,292 228,540 234,619 239,922 241,049 239,833 242,584 249,432 254,211   2% 20%
 
(1)

April, March, February, and January 2018 include outflows of $9.5 billion, $5.4 billion, $71.8 billion, and $7.2 billion, respectively, from certain mutual fund clearing services clients. October 2017 includes an inflow of $16.2 billion from a mutual fund clearing services client.

(2) Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $10 billion) relating to a specific client. These flows may span multiple reporting periods.
(3) Excludes Retirement Business Services.
(4) Periodically, the Company reviews its active account base. In July 2017, active brokerage accounts were reduced by approximately 48,000 as a result of low-balance closures.
(5) Schwab One®, certain cash equivalents, bank deposits and money market fund balances as a percentage of total client assets.
(6) Represents the principal value of client mutual fund transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to Investment Managers. Excludes money market fund transactions.
(7) Represents the principal value of client ETF transactions handled by Schwab, including transactions in proprietary ETFs.
(8) Represents average total interest-earning assets on the Company's balance sheet.

Contact:

MEDIA:
Charles Schwab
Mayura Hooper, 415-667-1525
or
INVESTORS/ANALYSTS:
Charles Schwab
Rich Fowler, 415-667-1841

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