A Look at Charles Schwab’s February 2018 Metrics



Core net new assets

On March 14, 2018, Charles Schwab (SCHW) reported its metrics for February 2018. The company witnessed core net new assets amounting to $21.3 billion in the month. These assets were contributed to by the company’s existing and new client bases.

In February, the company’s total client assets amounted to $3.3 trillion, which reflected a rise of 15% on a YoY (year-over-year) basis. However, on a sequential basis, the figure fell 4% mainly due to the net losses witnessed in the markets.

Charles Schwab saw net market losses amounting to $101.2 billion in February, while in January, it saw net market gains of $107.2 billion. The company reported 10.9 million active brokerage accounts in February.

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Net buying and selling

In February, Charles Schwab saw net selling of small- or mid-cap stocks of $167 million. During the same period, it saw net buying of large-cap stocks of $715 million. However, the company witnessed net selling activity of $417 million in the mutual funds category and $4.3 billion in money market funds in the month. During the same period, it witnessed net buying activity of $4.1 billion in ETFs.

While Charles Schwab’s ROA (return on assets) stands at 1.0% on a trailing-12-month basis, peers (XLF) Goldman Sachs (GS), Raymond James Financial (RJF), and Wells Fargo (WFC) have ROAs of 0.98%, 2.2%, and 1.0%, respectively, on a trailing-12-month basis.

In this series, we’ll look at Charles Schwab’s views on rate hikes, trade wars, and returns on stocks and bonds. We’ll also study Charles Schwab’s past performance, what’s expected of it moving forward, its valuations, and analysts’ ratings.


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