The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of August 2022 include:

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220915005416/en/

Core net new assets brought to the company by new and existing clients totaled $43.3 billion. Net new assets excluding mutual fund clearing totaled $43.1 billion.
Total client assets were $7.13 trillion as of month-end August, down 9% from August 2021 and down 2% compared to July 2022.
Average margin balances were $72.9 billion in August, down 10% from August 2021 and up 1% compared to July 2022.

CFO Peter Crawford commented, "Schwab's business momentum remained strong in August, with $43 billion in core net new assets, 332 thousand new accounts, and 5.6 million daily average trades. We did see a pick-up in so-called client cash sorting behavior during the month, consistent with our expectations that a faster rise in the Fed Funds rate could prompt an increase in the pace of sorting. That being said, we continue to expect that the total amount of overall sorting activity shouldn't be any higher this cycle than during the prior stretch of rising rates – and we still think it could even be a bit lower due to the factors discussed at our Summer Business Update back in July. Additionally, our ongoing success with clients and stronger net interest margin currently have the company's third quarter revenues on track to grow by 18% to 19% versus the prior year.

As clients move some of their cash to purchased money funds and fixed income, it increases our capital levels – freeing up capital which we can return to stockholders through higher common dividends, preferred redemptions, and/or stock buybacks. Our binding constraint of course is our consolidated Tier 1 Leverage Ratio. For many years, our operating objective for Tier 1 Leverage has been 6.75%-7.00%. Recently, however, we made the decision to lower that operating objective by 25 basis points to 6.50%-6.75%. This lower range reflects the increased maturity of our capital planning processes, the strength and resilience of our balance sheet, and the positive results from our inaugural CCAR submission. We'll discuss the implications of this change on our near-term capital activities at the upcoming Fall Business Update in October."

Forward-Looking Statements

This press release contains forward-looking statements relating to Schwab's business momentum and client success; client cash sorting; net interest margin; expected third quarter revenue growth; capital levels; returning excess capital to stockholders; Tier 1 Leverage Ratio operating objective; and balance sheet strength. These forward-looking statements reflect management's expectations as of the date hereof. Achievement of these expectations and objectives is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations.

Important factors that may cause such differences include, but are not limited to, the company's ability to attract and retain clients and independent investment advisors and grow those relationships and client assets; develop and launch new and enhanced products, services, and capabilities, as well as enhance its infrastructure and capacity, in a timely and successful manner; hire and retain talent; support client activity levels; successfully implement integration strategies and plans; manage expenses; and monetize client assets. Other important factors include client use of the company's advisory solutions and other products and services; general market conditions, including equity valuations and the level of interest rates; the level and mix of client trading activity; market volatility; margin loan balances; securities lending; competitive pressures on pricing; client cash allocation decisions; client sensitivity to rates; level of client assets, including cash balances; capital and liquidity needs and management; balance sheet positioning relative to changes in interest rates; interest earning asset mix and growth; the migration of bank deposit account balances; and other factors set forth in the company's most recent reports on Form 10-K and Form 10-Q.

About Charles Schwab

The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial services, with 34.0 million active brokerage accounts, 2.3 million corporate retirement plan participants, 1.7 million banking accounts, and $7.13 trillion in client assets as of August 31, 2022. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiaries, Charles Schwab & Co., Inc., TD Ameritrade, Inc., and TD Ameritrade Clearing, Inc., (members SIPC, https://www.sipc.org), and their affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com.

TD Ameritrade, Inc. and TD Ameritrade Clearing, Inc. are separate but affiliated companies and subsidiaries of TD Ameritrade Holding Corporation. TD Ameritrade Holding Corporation is a wholly owned subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank.

The Charles Schwab Corporation Monthly Activity Report For August 2022

	2021										2022																Change
	Aug		Sep		Oct		Nov		Dec		Jan		Feb		Mar		Apr		May		Jun		Jul		Aug		Mo.		Yr.
Market Indices (at month end)
Dow Jones Industrial Average^®	35,361		33,844		35,820		34,484		36,338		35,132		33,893		34,678		32,977		32,990		30,775		32,845		31,510		(4	%)	(11	%)
Nasdaq Composite®	15,259		14,449		15,498		15,538		15,645		14,240		13,751		14,221		12,335		12,081		11,029		12,391		11,816		(5	%)	(23	%)
Standard & Poor's® 500	4,523		4,308		4,605		4,567		4,766		4,516		4,374		4,530		4,132		4,132		3,785		4,130		3,955		(4	%)	(13	%)
Client Assets (in billions of dollars)
Beginning Client Assets	7,642.7		7,838.2		7,614.0		7,982.3		7,918.3		8,138.0		7,803.8		7,686.6		7,862.1		7,284.4		7,301.7		6,832.5		7,304.8
Net New Assets⁽¹⁾	51.8		42.9		22.9		31.4		80.3		33.6		40.6		46.3		(9.2	)	32.8		19.8		31.5		43.3		37	%	(16	%)
Net Market Gains (Losses)	143.7		(267.1	)	345.4		(95.4	)	139.4		(367.8	)	(157.8	)	129.2		(568.5	)	(15.5	)	(489.0	)	440.8		(220.5	)
Total Client Assets (at month end)	7,838.2		7,614.0		7,982.3		7,918.3		8,138.0		7,803.8		7,686.6		7,862.1		7,284.4		7,301.7		6,832.5		7,304.8		7,127.6		(2	%)	(9	%)
Core Net New Assets⁽²⁾	51.8		42.9		36.8		45.1		80.3		33.6		40.6		46.3		(9.2	)	32.8		40.6		31.5		43.3		37	%	(16	%)
Receiving Ongoing Advisory Services (at month end)
Investor Services	542.5		530.1		548.3		543.1		559.2		541.9		533.7		538.9		509.3		513.0		483.8		514.8		499.2		(3	%)	(8	%)
Advisor Services ⁽³⁾	3,333.4		3,253.2		3,399.8		3,374.3		3,505.2		3,382.4		3,342.5		3,404.6		3,190.5		3,213.8		3,040.4		3,222.5		3,150.5		(2	%)	(5	%)
Client Accounts (at month end, in thousands)
Active Brokerage Accounts	32,513		32,675		32,796		32,942		33,165		33,308		33,421		33,577		33,759		33,822		33,896		33,934		33,984		-		5	%
Banking Accounts	1,594		1,580		1,593		1,608		1,614		1,628		1,641		1,641		1,652		1,658		1,669		1,680		1,690		1	%	6	%
Corporate Retirement Plan Participants	2,188		2,207		2,213		2,198		2,200		2,216		2,235		2,246		2,261		2,275		2,275		2,267		2,285		1	%	4	%
Client Activity
New Brokerage Accounts (in thousands)	402		374		397		448		473		426		356		420		386		323		305		278		332		19	%	(17	%)
Client Cash as a Percentage of Client Assets ⁽⁴⁾	10.3	%	10.8	%	10.4	%	10.5	%	10.9	%	11.3	%	11.5	%	11.4	%	11.9	%	12.0	%	12.8	%	12.0	%	12.1	%	10 bp		180 bp
Derivative Trades as a Percentage of Total Trades	23.1	%	23.1	%	22.5	%	23.4	%	23.0	%	22.4	%	24.0	%	22.4	%	21.9	%	22.6	%	22.3	%	24.2	%	23.3	%	(90) bp		20 bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets ⁽⁵⁾	552,372		565,379		574,181		584,362		605,709		622,997		629,042		644,768		636,668		620,157		614,100		605,751		586,154		(3	%)	6	%
Average Margin Balances	81,021		81,705		83,835		87,311		88,328		86,737		84,354		81,526		83,762		78,841		74,577		72,177		72,855		1	%	(10	%)
Average Bank Deposit Account Balances ⁽⁶⁾	150,896		152,330		154,040		153,877		154,918		157,706		153,824		155,657		152,653		154,669		155,306		154,542		148,427		(4	%)	(2	%)
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) ^(7,8)(in millions of dollars)
Equities	8,808		7,596		8,840		13,099		11,519		7,384		9,371		14,177		(786	)	1,889		(1,586	)	5,589		10,465
Hybrid	569		335		81		308		(1,207	)	(367	)	(478	)	(497	)	(529	)	(1,718	)	(1,054	)	(2,041	)	(783	)
Bonds	8,044		6,232		4,425		4,097		5,600		1,804		(1,973	)	(7,851	)	(6,933	)	(6,121	)	(5,631	)	729		(141	)
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds ⁽⁷⁾	3,876		(308	)	302		189		(2,859	)	(4,961	)	(6,318	)	(11,888	)	(16,657	)	(20,761	)	(16,258	)	(8,674	)	(7,117	)
Exchange-Traded Funds ⁽⁸⁾	13,545		14,471		13,044		17,315		18,771		13,782		13,238		17,717		8,409		14,811		7,987		12,951		16,658
Money Market Funds	(1,372	)	(1,512	)	(451	)	(1,725	)	(144	)	(1,984	)	(1,086	)	(1,344	)	(3,430	)	7,106		11,544		13,711		19,702

	Note: Certain supplemental details related to the information above can be found at: https://www.aboutschwab.com/financial-reports.
⁽¹⁾	June 2022 includes an outflow of $20.8 billion from a mutual fund clearing services client. November 2021 includes an outflow of $13.7 billion from a mutual fund clearing services client. October 2021 includes an outflow of $13.9 billion from a mutual fund clearing services client.
⁽²⁾	Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $10 billion) relating to a specific client. These flows may span multiple reporting periods.
⁽³⁾	Excludes Retirement Business Services.
⁽⁴⁾	Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets.
⁽⁵⁾	Represents average total interest-earning assets on the company's balance sheet.
⁽⁶⁾	Represents average TD Ameritrade clients' uninvested cash sweep account balances held in deposit accounts at third-party financial institutions.
⁽⁷⁾	Represents the principal value of client mutual fund transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to Investment Managers. Excludes money market fund transactions.
⁽⁸⁾	Represents the principal value of client ETF transactions handled by Schwab, including transactions in proprietary ETFs.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220915005416/en/

Schwab Reports Monthly Activity Highlights