Schwab’s Monthly Metrics Improve Significantly; Rate Hike To Further Propel Asset Growth

by Trefis Team
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Charles Schwab
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In continuation with a strong performance across its key metrics in the first 7 months of the year, Charles Schwab‘s (NYSE:SCHW) growth trend continued as the brokerage saw significant improvement across its key metrics in August. Interest earning assets, which generate over 45% of Schwab’s revenues, continued their strong growth (around 10% year over year). This surge in volumes has likely been driven by both the rate hikes over the past few months and the anticipation of further hikes in the year ahead.

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.

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