Charles Schwab shares rise as net new assets rise in August By Investing.com

Charles Schwab (NYSE: ) shares rose 2.7% on Monday after releasing its August 2024 Monthly Activity Report, which showed a significant year-over-year increase in net new assets.

The company reported $32.8 billion in net new core assets for the month, a sharp increase from the $4.9 billion reported in August 2023. The increase came as Schwab continues to attract new and existing clients.

At the end of August, Schwab’s total client assets reached $9.74 trillion, up 20% from the same period in 2023 and up 2% from July 2024.

Additionally, new brokerage accounts for the month totaled 324,000, reflecting a 4% year-over-year increase.

The report also noted a modest decline in transactional 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, down 70% and 85% from August 2023 and August 2022, respectively.

Schwab said it expects third-quarter results to be in line with the scenario outlined in its July Business Update, with anticipated revenue growth of 2% to 3% from 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.