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Charles Schwab reports strong asset growth in February

EditorEmilio Ghigini
Published 03/14/2024, 08:56 PM
© Reuters.
SCHW
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WESTLAKE, Texas - The Charles Schwab Corporation (NYSE:SCHW) has reported significant growth in both client assets and net new assets for February 2024, according to its Monthly Activity Report. The financial services firm noted that core net new assets from new and existing clients totaled $33.4 billion, with total client assets reaching $8.88 trillion at month-end, marking a 20% increase from the previous year and a 4% rise from January 2024.

Transactional sweep cash, however, saw a decrease of $2.9 billion compared to the previous month, ending February at $403.2 billion. The company attributes its positive performance to a combination of rising equity markets and increased client trading activity at the beginning of the year.

Looking ahead, Charles Schwab anticipates a sequential revenue growth of approximately 5% to 6% for the first quarter, as well as an adjusted pre-tax profit margin expansion of nearly four percentage points compared to the fourth quarter.

This forecast is underpinned by the full impact of incremental cost savings realized late in 2023. The company expects the GAAP pre-tax profit margin for the first quarter of 2024 to expand by more than 900 basis points versus the fourth quarter of 2023.

The press release also contains forward-looking statements regarding the company's revenue and adjusted pre-tax profit margin for the first quarter. However, these projections are subject to various risks and uncertainties that could affect the actual results.

Charles Schwab is a leading provider of financial services, with millions of active brokerage accounts and banking accounts, and trillions of dollars in client assets. The company offers a broad range of services including wealth management, securities brokerage, banking, asset management, custody, and financial advisory services.

This report is based on a press release statement and reflects management's expectations as of the date of the release. The actual performance may vary due to factors such as market conditions, client decisions, competitive pressures, and regulatory developments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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