Charles Schwab reports August total client assets $9.74T

Charles Schwab released its monthly activity report. Company highlights for the month of August include: core net new assets brought to the company by new and existing clients increased to $32.8B for the month, up from $4.9B in the prior year period. August 2023 asset gathering included the impact of the anticipated attrition ahead of our September 2023 client conversion weekend – the largest of the five total transition weekends. Total client assets equaled $9.74T as of month-end August, up 20% from August 2023 and up 2% compared to July. New brokerage accounts totaled 324,000 in August, an increase of 4% versus August 2023. Driven by typical August seasonality observed during the current interest rate cycle, transactional sweep cash declined modestly versus the prior month to $366.8B. This month-over-month decline represents an improvement of approximately 70% and 85% relative to August 2023 and August 2022, respectively. As of mid-September, quarter-to-date net changes in transactional sweep cash are trending favorable to the first half of 2024, enabling a reduction in the amount of outstanding supplemental funding at the bank relative to the prior quarter-end level. The company currently anticipates its third quarter results to finish in-line with the scenario outlined during the July business update. Total revenue is expected to grow by 2%-3% versus the prior quarter, with an adjusted pre-tax profit margin of at least 40%. These anticipated quarterly results reflect healthy investor engagement across Schwab’s modern wealth platform and the continued slowing of rate-related client cash realignment activity.