How Did Charles Schwab’s Investor Services Segment Fare in 1Q16?



Investor Services

Charles Schwab’s (SCHW) Investor Services segment reported total client assets of $1.4 trillion in 1Q16, a rise of 1% from 4Q15. Clients in this division added $15.7 billion in assets. The Investor Services segment’s assets make up 54% of Charles Schwab’s total client assets. The company provides retail brokerage and banking services to individual investors, retirement plan services, and corporate brokerage services under its Investor Services division.


Here is how a few of SCHW’s peers in the brokerage industry have fared in terms of revenue in the last 12 months:

  • Interactive Brokers Group (IBKR) posted revenue of $1.1 billion.
  • TD Ameritrade Holding Corporation (AMTD) posted revenue of $3.1 billion.
  • E*TRADE Financial Corporation (ETFC) posted revenue of $1.8 billion.

Together, these companies form 10.8% of the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI).

Financial planning

Charles Schwab aims to provide customized solutions to meet its individual customers’ financial needs. Its prime focus is handling wealth management rather than simply providing a platform for trading activity. The company’s banking services are utilized by brokers, dealers, and clients to maximize the value of its clients’ deposits.

Charles Schwab’s Investor Services segment added 163,000 retail brokerage accounts in 1Q16, down 8% from 4Q15. Total accounts for the division rose by 3% to 6.9 million as of March 31, 2016. The company focuses on financial planning for retail customers and held 34,000 conversations about financial planning in 1Q16, up 36% compared to 4Q15.

In 1Q16 Charles Schwab also hosted an interactive online trading event for 3,600 clients and prospects, featuring a conversation with Alan Greenspan, a panel hosted by Charles Schwab traders, and a presentation on profit-taking techniques. The company also launched voice ID service, enhancing both the safety and convenience of interacting with the company’s products. The biometric technology allows clients to quickly and securely authenticate over the phone simply by saying a passphrase.

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