Charles Schwab Corp.’s stock
SCHW,
rose by 2.4% in premarket trading on Thursday after the financial firm said total client assets rose 12% in November from October to $8.18 trillion, also up 7% from the previous month. Schwab expects its full-year 2023 revenue to fall by about 9.5% to 10% from full-year 2022 due to lower transactional cash levels, softer client trading volumes and subdued securities lending activity. Wall Street analysts currently estimate an 8% drop in annual revenue to $19.02 billion, according to FactSet data. For the month of November, core net new assets brought to the company by new and existing clients were $21.7 billion. Transactional sweep cash as of Nov. 30 increased $5 billion in November to $402.9 billion from the previous month. Schwab said it was the largest monthly build in transactional sweep cash since March 2022. Clients added more than $7 billion across Schwab’s balance sheet cash solutions in November, excluding bank deposit account balance activity.
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