Schwab Witnesses Impressive Growth Across Monthly Metrics In November
Charles Schwab (NYSE:SCHW) saw marked improvement across its key metrics in November. In the wake of the recently concluded U.S. presidential elections and positive data for GDP and the employment rate, the markets have risen sharply in recent weeks. We believe the increase in share prices and positive sentiment has contributed to the increase in trading volumes in November, which were otherwise dull for most of the year. We expect the heightened volumes to continue as investors consider the impact over the near term of Trump’s election on various industries. This is likely to lead to marked growth in trading commissions for the brokerage.
Speculation about a possible hike in early 2017 had continued to propel the growth in interest earning assets in second half of the year. With the confirmation of the recent hike and Fed’s guidance of three more hikes in 2017, these trends will likely continue, sustaining the upward trend in both assets and the revenues from them.
With the demand for tech-advanced products and expert advice on asset management having scaled over the time, the brokerage’s assets under management have continued to grow at a notable rate. The company’s continued efforts in innovating new products, and its recent foray into low cost and efficient digital advisory services, are both likely to further the growth in these assets.
See our complete analysis for Charles Schwab.
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap