This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Schwab Reports Monthly Activity Highlights

Stocks in this article: SCHW

The Charles Schwab Corporation released its Monthly Market Activity Report today. Company highlights for the month of February 2013 include:

  • Net new assets brought to the company by new and existing clients in February 2013 totaled $18.3 billion, including an $8.1 billion inflow related to a mutual fund clearing services client.
  • Total client assets were a record $2.04 trillion as of month-end February, up 13% from February 2012 and up 1% compared to January 2013.
  • Client daily average trades were 506.1 thousand in February 2013, up 1% compared to February 2012 and flat compared to January 2013. February 2013 trading activity included a 2% sequential decline in daily average revenue trades.

The company expects first quarter compensation expense to be elevated by approximately $10 million pre-tax due to the planned transition to a new payout schedule for field incentive plans. Trailing payouts under the old schedule will diminish as the year progresses. In addition, the company funded its entire annual contribution to employee health savings accounts (HSAs), which totaled approximately $10 million, in the first quarter. Schwab is in the process of converting to HSA-focused healthcare, and employee enrollment in these plans has risen significantly in 2013. The company’s average quarterly HSA contribution in 2012 was approximately $200,000, reflecting lower participation. The company also expects to record a one-time compensation expense of approximately $10 million during the first quarter related to previously-announced equity incentive plan changes to vesting for retirement-eligible employees.

CFO Joe Martinetto commented, “Our client-focused strategy continues to yield strong business momentum. Net new assets were $30 billion year-to-date, an annualized organic growth rate of 9%. Client trading activity, however, remains muted. Since trade volumes have yet to rebound as expected, we are adjusting our 2013 spending plans accordingly. With our expense growth beginning to moderate from planned levels at this point in the year, we expect reported first quarter earnings per share to at least match the prior quarter and full-year EPS to remain consistent with the baseline scenario we described during our Winter Business Update on February 7.”

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs