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

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Charles Schwab (SCHW - Free Report) released its monthly activity report for October 2024. The company’s core net new assets of $24.6 billion surged substantially from $11.3 billion recorded in the year-ago month but declined from the previous month’s $33.5 billion.

SCHW’s October Performance Breakdown

SCHW’s total client assets in October 2024 were $9.85 trillion, down marginally from the September 2024 level but up 28.7% from October 2023. Client assets receiving ongoing advisory services were $4.97 trillion, falling 1% from the prior month and rising 27.3% year over year.

Schwab’s average interest-earning assets of $422.3 billion in October increased marginally from September 2024 but declined 3.7% year over year. Average margin balances were $74.1 billion, up 1.9% from the previous month and 15.9% on a year-over-year basis. Average bank deposit account balances totaled $83.3 billion in October, up 1.1% from last month and down 14.9% from October 2023.

Schwab opened 331,000 new brokerage accounts in October 2024, up 3.1% sequentially and 16.5% from the year-earlier month.

Schwab’s active brokerage accounts totaled 36.1 million at the end of October 2024, which was up marginally on a sequential basis and 4.3% from the year-ago month. Client banking accounts were 1.97 million, up marginally sequentially and 8.6% from the October 2023 figure. The number of workplace plan participant accounts was up marginally from the prior month and 3.7% year over year to 5.41 million.

SCHW’s Zacks Rank & Price Performance

In the past six months, Schwab shares have rallied 2.8% compared with the industry’s rise of 20%.

Zacks Investment Research
Image Source: Zacks Investment Research

Currently, SCHW carries a Zacks Rank #3 (Hold).

Competitive Landscape

Interactive Brokers Group, Inc. (IBKR - Free Report) released the Electronic Brokerage segment’s performance metrics for October 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 October were 2,823,000, which increased 46% from October 2023 and 7.2% from last month.

Another brokerage firm, LPL Financial (LPLA - Free Report) is expected to come out with its monthly activity report soon.

Currently, IBKR and LPLA carry a Zacks Rank #3 each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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