The Charles Schwab Corporation (NYSE:SCHW) released its monthly activity report for Oct 2016. The monthly metrics reflect an overall improvement.
Total client assets were $2.7 trillion at October end, increasing 6% year over year. Further, client assets receiving ongoing advisory services were $1.35 trillion as of Oct 31, 2016, up 7% year over year.
Additionally, average interest earning assets were $201.9 billion at October end, reflecting a 22% surge on a year-over-year basis.
However, net new assets, through both existing and new clients, totaled $6.1 billion, down 42% year over year. Schwab opened 84,000 new brokerage accounts in Oct 2016, down 5% from the prior-year month.
Nonetheless, the company’s active brokerage accounts totaled $10.07 million at the end of the reported month, up 4% from the Oct 2015 level. The client’s banking accounts at the end of October totaled 1.09 million, growing 6% from the prior-year period. Further, the number of retirement plan participants was 1.55 million, which implies an increase of 3% year over year.
The new fully automated investment advisory service offered by Schwab is likely to boost its trading revenues, going forward. Also, the flurry of securities trading activities following the Presidential election results and high chance of interest rate hike next month should support the company trading revenues.
Further, following this news release, Schwab’s shares increased around 1.9% from the prior day’s closing, while also hitting a new 52-week high of $37.71 per share. Moreover, the shares have risen approximately 12% year to date.
Currently, Schwab sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Investment Brokers
TD Ameritrade Holding Corporation (NASDAQ:AMTD) reported $764.2 billion in total client assets in Oct 2016, up 9% year over year, but down 1% from the prior month. Also, the company came up with average client trades per day of 438,000, which was stable from the prior-year month, but declined 4% from the Sep 2016 level.
E*TRADE Financial Corporation (NASDAQ:ETFC) reported a rise in its Daily Average Revenue Trades (DARTs) in the monthly market activity report for Oct 2016. DARTs were 168,739, up 17% from the prior-year quarter and 2% sequentially.
Interactive Brokers Group, Inc.’s (NASDAQ:IBKR) total client DARTs were 603,000 in October, down 8% from the prior-year month and 7% from Sep 2016. However, total customer accounts were 375,000, up 15% year over year and 1% from the prior month.
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