New brokerage account openings at Charles Schwab were up 23% year-over-year, bringing total active accounts to 36.5 million, the investment giant said in its year-end report.
Schwab’s Managed Investing Solutions saw net inflows of $15 billion, bringing the 2024 total to a record $55 billion. Converted Retail Ameritrade clients accounted for about 35% of net inflows, Schwab said.
Client engagement surged after the November election, with trading activity up 11% compared with the third quarter.
Net income for the fourth quarter totaled $1.8 billion, for per-share earnings of $.94. Excluding pre-tax transaction-related and restructuring costs, adjusted net income and earnings per share were $2.0 billion and $1.01, respectively.
“In the fourth quarter of 2024, we added $115 billion in core net new assets, bringing asset gathering for the year to $367 billion – a 4.3% annualized growth rate,” said CEO Rick Wurster in a news release. “This 20% annual increase in net new assets reflects our ongoing progress following the Ameritrade integration.”
Schwab client total assets increased 19% year-over-year to $10.10 trillion, thanks to net asset gathering, the company said. Core net new assets were $366.9 billion, up 20% from 2023.
Noting the 20% increase in fourth quarter 2024 revenue growth vs. fourth quarter 2023, Wurster said, “Strong client engagement, increased margin utilization, encouraging client cash trends, and record net inflows into our Managed Investing Solutions helped lift 4Q24 revenue to $5.3 billion, – an increase of 20% year-over-year.”
Retail client satisfaction scores rose to record levels, Schwab reported, adding that Advisor Services promoter scores were above pre-conversion levels. Schwab also reported that Newsweek awarded it America’s Best Customer Service 2025.
Additionally, Schwab Mobile was recognized as the top mobile investing app by Corporate Insight.
