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How Did Charles Schwab’s November Metrics Look?



YoY rise

On December 14, 2017, Charles Schwab (SCHW) announced its numbers for November 2017. At the beginning of November 2017, the company had client assets of $3.2 trillion, and during the month, it saw net new assets of $15.7 billion. These assets came from existing as well as new clients.

The net new assets in October 2017 stood at $35.4 billion, and in November 2016, they were at $11.9 billion. Compared to October 2017, the company saw a marginal rise in the active brokerage accounts to 10.7 million in November 2017.

Charles Schwab posted a net income margin of 24.4% on an LTM (last-12-months) basis. On the other hand, peers (XLF) Bank of New York Mellon (BK), LPL Financial Holdings (LPLA), and Wells Fargo (WFC) posted margins of 87.2%, 5.2%, and 33.7%, respectively, on an LTM basis.

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Favorable market momentum

As of November 2017, Charles Schwab had total client assets of $3.3 trillion. The company saw net gains from the favorable momentum of the markets of $46.6 billion in November 2017, implying a rise from October 2017. Moreover, in November 2016, it saw net market gains of $36 billion.

Charles Schwab posted net buys of $85 million of large-cap stocks in November 2017. During the same month, it saw net buys of $2.3 billion and $371 million in taxable and tax-free bonds, respectively. The company posted net buying of $882 million of mutual funds in November 2017.

In the next article, let’s look at Charles Schwab’s assets and liabilities.


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