Schwab’s Monthly Metrics Improve Significantly; Rate Hike To Propel Asset Growth
After a phenomenal first quarter, Charles Schwab‘s (NYSE:SCHW) growth trend continued as the brokerage saw significant improvement across its key metrics in May. Interest earning assets, which generate over 45% of Schwab’s revenues, continued their strong growth (around 17% year over year). With the confirmation of the recent interest rate hike and the Fed’s guidance for more hikes in 2017, these trends will likely continue, sustaining the upward trend in both assets and the revenues from them.
Assets under management (AUM) have also continued to grow, and the brokerage’s digital advisory business and focus on newer investment products are likely to drive further AUM growth and consequently, higher investment product fees.
The decline in revenues from slashing of trading commissions will be largely offset by the growth in trading volumes.
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