Schwab's July Core Net New Assets Significantly Rise Y/Y

Charles Schwab SCHW reported its monthly activity report for July 2024. The company's core net new assets of $29 billion surged substantially from $13.7 billion recorded in the prior-year month but was unchanged from the previous month.

SCHW's total client assets in July 2024 were $9.57 trillion, up 2% from the June 2024 level and 16% from July 2023. Client assets receiving ongoing advisory services were $4.83 trillion, rising 2% from the prior month and 16% year over year.

Schwab's average interest-earning assets of $417.4 billion in July increased marginally from June 2024 but declined 11% year over year. Average margin balances were $73.2 billion, up 5% from the previous month and 16% on a year-over-year basis. Average bank deposit account balances totaled $84 billion in July, down 1% from last month and 18% from July 2023.

Schwab opened 327,000 new brokerage accounts in July 2024, up 5% sequentially and 8% from the year-earlier month.

Schwab's active brokerage accounts totaled 35.7 million at the end of July 2024, which was stable on a sequential basis and up 4% from the year-ago month. Client banking accounts were 1.94 million, stable sequentially and up 8% from the July 2023 figure. The number of workplace plan participant accounts was stable from the prior month and up 7% year over year to 5.38 million.

In the past six months, Schwab shares have rallied 3.1% compared with the industry's rise of 15.7%.

Image Source: Zacks Investment Research

Currently, SCHW carries a Zacks Rank #4 (Sell).

Competitive Landscape

Interactive Brokers Group, Inc. IBKR released the Electronic Brokerage segment's performance metrics for July 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 July were 2,756,000, which increased 38.4% from July 2023 and 11.6% from last month.

Another brokerage firm, LPL Financial LPLA, is expected to come out with its monthly activity report soon.

Currently, IBKR sports a Zacks Rank #1 (Strong Buy) and LPLA has a Zacks Rank #3 (Hold).

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