Charles Schwab (NYSE:SCHW) recently published its monthly activity report for October 2023, revealing a 58% drop in core net new assets to $11.3 billion compared to the previous month. This decrease is primarily attributed to temporary attrition among TD Ameritrade (“TDA”) clients and advisors, along with delayed tax disbursements in certain states, such as California. Year-over-year, the decline is even more significant, standing at 73% from the figures reported in the same month of the previous year.
Total client assets for October 2023 amounted to $7.65 trillion, reflecting a 2% decrease from September 2023 levels but showing a 9% increase from October 2022 figures. Client assets involved in ongoing advisory services reached $3.9 trillion, down 2% from the previous month but up 9% year over year.
In terms of average interest-earning assets, Schwab reported $438.2 billion for October, marking a 1% decrease from September 2023 and a notable 21% decline year over year. Average margin balances remained stable at $63.9 billion compared to the previous month but saw an 8% decrease on a year-over-year basis. Average balances in bank deposit accounts totaled $97.9 billion, indicating a 3% decrease from the previous month and a significant 28% drop from October 2022 levels.
Despite these challenges, Schwab managed to open 284,000 new brokerage accounts in October 2023, representing a 3% increase sequentially but a 5% decrease from the figures reported in the same month of the previous year. The company’s active brokerage accounts stood at 34.6 million at the end of October 2023, showing stability compared to the previous month and a 2% growth from the figures reported a year ago.
Client banking accounts saw a 1% sequential increase and a notable 6% rise from October 2022, reaching 1.81 million. Workplace plan participant accounts also experienced growth, with a 1% increase from the previous month and an 8% rise year over year, totaling 5.21 million.
Over the past six months, Schwab’s shares have outperformed the industry, gaining 9.3% compared to the industry’s rise of 1.5%.
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