Business highlights for the second quarter (data as of quarter-end unless otherwise noted) :
- Net new accounts for the quarter totaled approximately 47,000, up 18% year-over-year. Total accounts reached 6.2 million as of June 30, 2013, up 2% year-over-year.
- Launched Secure Messaging, a communication channel that provides an alternative to fax and mail, enabling clients to log in to Schwab.com and send and receive messages securely, including transmitting documents electronically.
- Enhanced options pairing logic at Schwab to optimize margin calculations, resulting in higher buying power for clients with certain multi-leg positions. Also introduced the optionsXpress-inspired All in One Trade Ticket and Trade & Probability Calculator for Schwab clients.
- Announced Morningstar Associates, LLC as a managed account provider for Schwab Index Advantage ®.
- Launched Schwab PortfolioCenter Hosted ™, a full functionality, cloud-based version of Schwab’s PortfolioCenter ®, giving independent registered investment advisors (RIAs) the added benefit of outsourcing their technology infrastructure and management to Schwab.
- Launched Schwab OpenView MarketSquare ™, a review site that compiles feedback and ratings from independent RIAs on some of the leading technology vendors and products in the industry.
Products and Infrastructure
- For Charles Schwab Bank:
- Balance sheet assets = $90.9 billion, up 26% year-over-year.
- Outstanding mortgage and home equity loans = $10.6 billion, up 16% year-over-year.
- First mortgage originations through its loan program during the quarter = $1.6 billion.
- Delinquency, nonaccrual, and loss reserve ratios for Schwab Bank’s loan portfolio = 0.57%, 0.36% and 0.48%, respectively, at month-end June.
- Schwab Bank High Yield Investor Checking ® accounts = 712,000, with $11.4 billion in balances.
- Client assets managed by Windhaven ® totaled $17.3 billion, up 56% from the second quarter of 2012.
- Total assets under management in Schwab ETFs ™ = $12.2 billion. Total assets in Schwab Managed Portfolios-ETFs = $2.6 billion.
- Introduced ThomasPartners ®, a dividend income-focused money management strategy available to retail and RIA clients.