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The Charles Schwab Corporation released its Monthly Market Activity Report today. Company highlights for the month of November 2012 include:
Net new assets brought to the company by new and existing clients in November 2012 totaled $16.2 billion, including a $5.4 billion inflow related to a mutual fund clearing services client and a $0.9 billion outflow related to a planned transfer from Corporate Brokerage Services.
Total client assets were a record $1.92 trillion as of month-end November, up 15% from November 2011 and up 1% compared to October 2012.
Client daily average trades were 431.8 thousand in November 2012, flat compared to November 2011 and down 2% compared to October 2012. November 2012 trading activity included a 6% sequential increase in daily average revenue trades.
CFO Joe Martinetto commented, “Broader signs of an improving economy, along with our ongoing investment in our clients, are helping to drive strong asset growth in our business. November core net new assets of $11.7 billion were the highest for a single month since January 2009. With the fiscal debate continuing in Washington, client trading activity remains muted as we head towards year-end. Despite this trend and the loss of trading revenue due to Hurricane Sandy-related exchange closures, we believe our progress in building the client base should help year-over-year revenue growth reach approximately 8% for the fourth quarter of 2012. Additionally, the company’s financial discipline remains firmly in place - we anticipate that fourth quarter expenses will come in approximately 1% higher than the year-earlier period, consistent with our expectations given the environment. Under these circumstances we’d expect net income growth of approximately 25% over the fourth quarter of 2011.”
The SMART report can be viewed with its accompanying 12-month data at
Forward Looking Statements
This press release contains forward looking statements relating to the company’s client trading activity, revenue growth, expenses and net income growth. Achievement of these expectations is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations. Important factors that may cause such differences include, but are not limited to, general market conditions, including the level of interest rates, equity valuations and trading activity; net interest margin; level of expenses; the company’s ability to attract and retain clients and grow client assets/relationships; competitive pressures on rates and fees; the level of client assets, including cash balances; the company’s ability to monetize client assets; the company’s ability to develop and launch new products, services and capabilities in a timely and successful manner; capital needs and management; the impact of changes in market conditions on money market fund fee waivers, revenues, expenses and pre-tax margins; the effect of adverse developments in litigation or regulatory matters and the extent of any charges associated with legal matters; any adverse impact of financial reform legislation and related regulations; and other factors set forth in the company’s Form 10-Q for the period ending September 30, 2012.