Schwab’s Key Monthly Metrics Continue Sustained Growth In August
Charles Schwab (NYSE:SCHW) saw most of its monthly metrics perform well in August. Interest earning assets have continued to grow at a strong rate, possibly due to the expectation of an interest rate hike by the Fed in early 2017. While the company’s assets under management and net new brokerage accounts grew by 10% year on year (y-o-y) each, daily average revenue trades (DARTs) saw a slump in volumes. A slowdown in the Chinese economy in 2015 had given a major boost to trading activity in August last year. Consequently, we saw a major decline in the comparable period this year.
Going forward, we expect the DARTs to remain largely neutral owing to tough competition from other brokerages. Additionally, with digital advisory becoming a preferred choice and ETFs a preferred investment product, we expect Schwab Intelligent Platform to have a positive impact on the brokerage’s assets under management.
See our complete analysis for Charles Schwab.
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