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Schwab’s Robo-Related Assets Surge to $19.4B in Q2

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Charles Schwab (SCHW) says assets in its Intelligent Portfolios, the firm’s robo platform, totaled $19.4 billion as of June 3, up close to 140% from last year. Plus, its Advisor Services business more than doubled its level of net new assets from a year ago with inflows of $24.6 billion in the quarter ended June 30.

For its part, rival TD Ameritrade (AMTD) said it added $22.0 billion in net new client assets for the quarter, representing a 10% annualized growth rate.

Total assets at Schwab stand at $3 trillion, with about $1.4 trillion held in Advisor Services accounts.

In the second quarter of 2017, the firm boosted its net income 27% to $575 million, or $0.39 per share, from the year-ago period. Revenues rose 17% to $2.13 billion. Clients opened more than 350,000 new brokerage accounts during the second quarter, according to CEO Walt Bettinger.

In the first six months of this year, “Advisor Services attracted near-record core inflows and achieved a 77% year-over-year increase. Our impressive results were helped by an 86% year-over-year lift in net transfers of client assets from our competitors for the first half of 2017, demonstrating our ability to win in the marketplace,” he explained in a statement.

According to the firm, client balances tied to ongoing advisory services rose 17% year-over-year, and totaled $1.54 trillion at quarter-end, with $1.30 trillion under the guidance of a registered investment advisor and $242 billion enrolled in one of our retail or other advisory solutions.

TD’s Latest Results

TD Ameritrade’s total assets stand at $882.4 billion, with $190 billion in fee-based balances. The total asset figure rose 20% from the prior year.

Fee-based revenues were $112 million, and its net interest revenues were $175 million.

Average client trades per day were roughly 510,000, up 10% percent year over year.

Total net revenues were $931 million, with 62% being asset-based, vs. $838 million a year ago—for a jump of 11%. Net income of $231 million, or $0.44 per share, was down 3.8% from $240 million, or $0.45, a year earlier.

“We’re pleased to report another quarter of strong growth across all of our businesses,” said Tim Hockey, TD Ameritrade president and chief executive officer, in a statement.

“We’re seeing healthy trends in new account growth and asset inflows from both new and existing clients, and our institutional channel continues to break records for asset gathering,” Hockey explained. “Our technology pipelines are full of enhancements … [and] as we plan for the close of the Scottrade acquisition on the horizon, we have much more yet to do.”


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