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August 14, 2023 at 10:07 AM
Charles Schwab Corp. said it’s experiencing temporarily lower net flows of client money as the brokerage sees attrition of some retail and advisory clients’ assets while it integrates TD Ameritrade into its business.
The company has stepped back from certain custodial relationships that Ameritrade had offered to institutional clients, Charles Schwab Chief Financial Officer Peter Crawford said in a statement Monday.
The client attrition is in line with Schwab’s expectations for the deal when it was announced in 2019 and will subside in the first half of next year, Crawford said.
The firm’s shares fell 2.8% to $62.28 at 2:40 p.m. in New York.
Schwab’s attrition amounts to about 4% of Ameritrade revenue prior to the deal, or around 1% of combined total client assets as of the end of last year, Crawford said.
