Charles Schwab Corp.’s wealth management business surged by more than 50%, the financial services giant reported in its second quarter results.
Year to date, inflows to Managed Investing Solutions were up 56% over 2023. Client assets receiving advisory services increased 16% year-over-year, including year-to-date net flow increases into Schwab Wealth Advisory of 40% and Wasmer Schroeder Strategies of 53%.
“Client interest in our broad array of wealth solutions remained strong through June,” said Co-Chairman and CEO Walt Bettinger in a statement. “Year-to-date enrollments are up ~30% versus the prior year period and net flows into Managed Investing solutions reached $25 billion — an increase of 56% versus the first 6 months of 2023.”
Schwab’s net income for the second quarter was $1.3 billion, for $.66 diluted earnings per common share. The company reported that adjusted net income was $1.5 billion and diluted common earnings per share was $.73 after excluding $175 million of pre-tax transaction-related and restructuring costs.
Other second quarter client and business highlights included:
• Total client assets increased to a record $9.41 trillion.
• Active brokerage accounts were up 4% to $35.6 million.
• Core net new assets grew 17% to $61.2 billion.
• Margin balances totaled $71.7 billion at quarter-end, up 15% since the end of 2023
• Second quarter trading activity remained “robust” compared with 2023 levels, according to Schwab.
• Client net buying of mutual and exchange-traded funds was $77 billion — the second highest first half.
Charles Schwab Corp. (NYSE: SCHW) is a provider of financial services, with 35.6 million active brokerage accounts, 5.4 million workplace plan participant accounts, 1.9 million banking accounts, and $9.41 trillion in client assets.
