Schwab Monthly Brokerage Metrics: Interest-Earning Assets Continue To Surge In May
Charles Schwab saw most of its monthly metrics improve in May. After falling in April, net new brokerage accounts rebounded in May, with end of period brokerage accounts standing at just under 10 million. Daily Average Revenue Trades (DARTs) continued to rise, witnessing growth of 3% year on year (y-o-y) in the period. If volumes stay at current levels, we expect average implied annual trades per account to stand at 6.8. However, we have a more positive forecast of 7.6 trades per account in the year.
While average assets under management saw a rise of around 3% y-o-y, interest earning assets increased 20% y-o-y. We expect interest earning assets to continue the uptrend, supported by the expectation of a Fed rate hike by the end of 2016.
Have more questions about Charles Schwab? See the links below:
- Schwab’s Key Monthly Metrics Witness Growth In April
- Robo-Advisory: Schwab Vs. E-Trade
- What’s Charles Schwab’s Revenue And EBITDA Breakdown In Terms Of Operating Segments?
- How Has Schwab’s Revenue Composition Changed Over The Past 5 Years?
- How Has Schwab’s Revenue & EBITDA Changed In The Last Five Years?
- How Is Schwab Expected To Grow In The Next Five Years?
- How Important Is Net Interest On Assets For Schwab?
- What Drove Schwab’s Revenue And EBITDA Declines In 2015?
- What Can Drive A 20% Downside To Schwab’s Stock In The Next 2 Years?
- What Is Schwab’s Fundamental Value Based On Expected 2016 Results?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Charles Schwab.
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