WESTLAKE, Texas - The Charles Schwab Corporation (NYSE: NYSE:SCHW), a leading financial services firm, has reported its monthly activity for October 2024. The company saw $24.6 billion in core net new assets from new and existing clients, a significant increase from the previous year. This figure excludes mutual fund clearing, which totaled $21.0 billion.
Client assets reached $9.85 trillion at the end of October, marking a 29% rise from the same period in 2023, although this represents a slight 1% decrease from September 2024. Transactional sweep cash also showed growth, ending the month at $394.0 billion, a $10.0 billion increase from the previous month.
The report highlights the company's sustained growth despite minor fluctuations in market indices such as the Dow Jones Industrial Average, Nasdaq Composite, and S&P 500, which all experienced a 1% decline in October compared to September. However, these indices have shown substantial year-over-year gains.
Charles Schwab serves a vast clientele with 36.1 million active brokerage accounts, 5.4 million workplace plan participant accounts, and 2.0 million banking accounts as of October 31, 2024. The firm offers a range of services including wealth management, brokerage, banking, asset management, custody, and financial advisory services.
In the press release, Charles Schwab also provided an overview of its client assets distribution, account growth, and client activity, demonstrating the company's position in the financial services industry.
The information in this article is based on a press release statement from The Charles Schwab Corporation.
In other recent news, Charles Schwab Corporation has reported a 5% year-over-year increase in revenue to $4.8 billion for the third quarter of 2024. The company also declared a regular quarterly cash dividend of $0.25 per common share and dividends on several series of outstanding preferred stock. Charles Schwab is expanding access to the overnight trading session, including stocks in the S&P 500 and Nasdaq-100, and has made several enhancements to its trading platforms.
Analysts from Jefferies, Goldman Sachs, Citi, and Barclays (LON:BARC) have updated their outlooks on Charles Schwab, with Jefferies raising its price target to $84. The company anticipates a 2-3% revenue growth for 2024 and plans to introduce new retail alternatives in the fourth quarter. However, due to potential macroeconomic uncertainties, Charles Schwab has adjusted its net interest margin expectations for the end of 2025.
Lastly, a leadership transition is underway at Charles Schwab, with CEO Walt Bettinger set to depart and Rick Wurster to assume the role in January 2024. These are the recent developments for Charles Schwab Corporation.
InvestingPro Insights
To complement Charles Schwab's recent monthly activity report, InvestingPro data offers additional insights into the company's financial performance and market position.
Charles Schwab's market capitalization stands at an impressive $143.24 billion, reflecting its significant presence in the financial services sector. The company's revenue for the last twelve months as of Q3 2024 was $18.74 billion, with a robust gross profit margin of 96.78%. This high margin underscores Schwab's efficiency in generating revenue from its diverse range of financial services.
InvestingPro Tips highlight Schwab's strong recent performance, with the stock showing a strong return over the last month and three months. This aligns with the reported increase in core net new assets and overall client assets growth. The company is also trading near its 52-week high, with the current price at 98.44% of its 52-week peak, indicating investor confidence in Schwab's business model and growth prospects.
Another noteworthy InvestingPro Tip is that Charles Schwab has maintained dividend payments for 36 consecutive years. This consistent dividend history, combined with the current dividend yield of 1.28%, may appeal to income-focused investors and reflects the company's stable financial position.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Charles Schwab, providing a deeper understanding of the company's financial health and market position.
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