The Charles Schwab Corporation SCHW released its monthly activity report for November 2015. The company recorded net new assets (bought by existing as well as new clients) of $17.2 billion, up 58% from the prior-year month and 64% from the preceding month.
Further, total client assets summed $2.55 trillion, up 3% from November 2014 and 1% from October 2015. Additionally, the client assets, receiving ongoing advisory services, totaled $1.27 trillion for the month, increasing 3% year over year and marginally from the prior month.
As of November 2015-end, Schwab’s average interest-earning assets amounted to $167.4 billion, increasing 18% from November 2014 and 1% from October 2015.
Schwab opened 76,000 new brokerage accounts, up 9% from the November 2014 level but down 14% from October 2015. Further, the company’s active brokerage accounts totaled 9.7 million, increasing 4% from the prior-year month and almost at par with the previous month.
Clients’ banking accounts totaled 1.03 million, growing 6% year over year and almost stable with the preceding month. Also, Schwab reported 1.5 million corporate retirement plan participants for November 2015, up 7% year over year and 1% from the prior month.
Net sell activity in the Mutual Fund for November 2015 was $3,602 million, compared with net buy activity of $254 million recorded in November 2014 and net sell activity of $910 million in October 2015. Net buy activity in the Exchange Traded Funds was reported at $4,008 million, reflecting a rise of 19% year over year and 63% from the prior-month tally.
We believe Schwab is well positioned to benefit from improving broader trends in the investment brokerage industry as well as diversified revenue streams, enhanced equity markets and management’s efforts to boost the client base in advisory solutions. However, despite several initiatives to reduce dependency on interest rates, the company’s financials will likely remain under pressure due to the low interest rate environment.
Currently, Schwab carries a Zacks Rank #3 (Hold).
Among other investment brokers, TD Ameritrade Holding Corp.’s AMTD average client trades per day came in at 438,000, up 2% year over year and 1% from the prior month. As of Nov 30, 2015, TD Ameritrade reported $706.1 billion in total client assets, up 1% from the prior month and 5% year over year.
For Interactive Brokers Group, Inc. IBKR, total client Daily Average Revenue Trades (“DARTs”) was 640,000, up 11% from November 2014, but down 2% from October 2015. Additionally, E*TRADE Financial Corporation’s ETFC DARTs summed 148,777, decreasing 9% year over year but up 3% from the prior month.
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