Charles Schwab (NYSE:SCHW) saw its stock rise by over 2% intra-day on Monday after releasing its August 2024 Monthly Activity Report, highlighting a strong year-over-year surge in net new assets.
The report revealed that Schwab brought in $32.8 billion in core net new assets for August, a significant increase from the $4.9 billion recorded in the same month last year. This growth reflects the company’s success in attracting both new clients and additional investments from existing ones.
By the end of August, Schwab’s total client assets had reached $9.74 trillion, marking a 20% increase from August 2023 and a 2% uptick from July 2024. The number of new brokerage accounts also saw growth, with 324,000 accounts opened during the month, representing a 4% year-over-year increase.
The report noted a slight dip in transactional sweep cash, which fell to $366.8 billion, a seasonal shift influenced by the current interest rate environment. However, this decrease was significantly smaller compared to the same period in previous years, down 70% from August 2023 and 85% from August 2022.
Looking ahead, Schwab expects its third-quarter results to align with its July Business Update, forecasting revenue growth of 2% to 3% compared to the previous quarter. The company also anticipates an adjusted pre-tax profit margin of at least 40%, buoyed by strong investor activity and a reduction in client cash realignment due to interest rate fluctuations.