Charles Schwab (NYSE:) shares rose 2.7% on Monday following the release of its August 2024 Monthly Activity Report, which showed a significant year-on-year increase in net new assets.
The company reported $32.8 billion in core net new assets for the month, a sharp rise from the $4.9 billion reported in August 2023. The increase came as Schwab continues to attract new and existing clients.
As of August’s end, Schwab’s total client assets reached $9.74 trillion, up 20% from the same period in 2023 and up 2% compared to July 2024.
Additionally, new brokerage accounts for the month totaled 324,000, reflecting a 4% increase year-over-year.
The report also noted a modest decline in transactional sweep cash to $366.8 billion, driven by August seasonality during the current interest rate cycle.
However, Schwab pointed out that this decline marked a significant improvement, with a decrease of 70% and 85% compared to August 2023 and August 2022, respectively.
Schwab said it expects its third-quarter results to align with the scenario outlined in its July Business Update, with anticipated revenue growth of 2% to 3% over the previous quarter.
The company also expects to achieve an adjusted pre-tax profit margin of at least 40%, supported by healthy investor engagement and a slowdown in rate-related client cash realignment activity.