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Charles Schwab Corp.'s Stock Rises in Pre-market Trading

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Andrew R. Michaud

• December 14, 2023

Charles Schwab Corp.'s stock SCHW, +2.68% saw a 2.4% increase in premarket trading on Thursday. The financial firm reported a 12% rise in total client assets for the month of November, reaching $8.18 trillion. This also reflects a 7% increase compared to the previous month.

Lower Revenue Expected for Full-Year 2023

Schwab anticipates a decline in full-year 2023 revenue, estimating it to fall by approximately 9.5% to 10% compared to full-year 2022. This projected decrease can be attributed to lower transactional cash levels, softer client trading volumes, and subdued securities lending activity. According to FactSet data, Wall Street analysts currently predict an 8% drop in annual revenue, estimating it to be $19.02 billion.

Strong Core Net New Assets Acquisition in November

In November, Charles Schwab saw core net new assets amounting to $21.7 billion, contributed by both new and existing clients. Additionally, transactional sweep cash as of November 30th witnessed a $5 billion increase from the previous month, reaching $402.9 billion. This marks the largest monthly growth in transactional sweep cash since March 2022.

Significant Client Activity in Schwab's Balance Sheet Cash Solutions

During November, clients added over $7 billion to Schwab's balance sheet cash solutions. This excludes bank deposit account balance activity and demonstrates robust client engagement and utilization of the company's offerings.