The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of May 2022 include:

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• Core net new assets brought to the company by new and existing clients totaled $32.8 billion, as this year’s tax season followed a normal schedule for the first time since 2019. Net new assets excluding mutual fund clearing totaled $34.2 billion.
• Total client assets were $7.30 trillion as of month-end May, down 1% from May 2021 and flat compared to April 2022.
• Client cash as a percentage of assets was 12.0% as of month-end May, compared with 10.8% in May 2021 and 11.9% in April 2022.

CFO Peter Crawford commented, “Schwab’s strong business momentum and rising interest rates are helping power our diversified financial model. To the extent equity market valuations, client trading activity, and margin loan utilization remain at early June levels, we currently expect sequential revenue growth of 7.5% to 8.5% in the second quarter. At the same time, we anticipate second quarter GAAP expenses staying essentially flat relative to the prior period.”

Forward-Looking Statements

This press release contains forward-looking statements relating to Schwab’s business momentum; expected sequential revenue growth in the second quarter; and anticipated second quarter GAAP expenses. Achievement of these expectations, beliefs, and objectives 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 equity valuations and the level of interest rates; the level and mix of client trading activity; margin loan balances; securities lending; competitive pressures on pricing; client cash sorting; client sensitivity to rates; the level of client assets, including cash balances; market volatility; the company’s ability to attract and retain clients and registered investment advisors and grow those relationships and associated client assets; the company’s ability to monetize client assets; the company’s ability to support client activity levels and attract and retain talent; balance sheet positioning relative to changes in interest rates; interest earning asset mix and growth; the company’s ability to manage expenses; integration-related and other technology projects; compensation; capital expenditures; the effect of adverse developments in litigation or regulatory matters and the extent of any charges associated with such matters; and other factors set forth in the company’s most recent reports on Form 10-K and Form 10-Q.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 33.8 million active brokerage accounts, 2.3 million corporate retirement plan participants, 1.7 million banking accounts, and $7.30 trillion in client assets as of May 31, 2022. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiaries, Charles Schwab & Co., Inc., TD Ameritrade, Inc., and TD Ameritrade Clearing, Inc., (members SIPC, https://www.sipc.org), and their affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com.

TD Ameritrade, Inc. and TD Ameritrade Clearing, Inc. are separate but affiliated companies and subsidiaries of TD Ameritrade Holding Corporation. TD Ameritrade Holding Corporation is a wholly owned subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank.

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