Charles Schwab Shares Drop as Core Net New Assets Fall After Losing TD Ameritrade Clients


Charles Schwab (SCHW) shares declined after the online brokerage and financial advisory firm reported core net new assets dropped last month because of issues tied to the integration of TD Ameritrade, which it bought three years ago.

Schwab indicated core net new assets added in August were $4.9 billion, down from $43.1 billion a year ago and $13.7 billion in July. The company attributed the drop in part to attrition from clients who were originally at Ameritrade. CFO Peter Crawford explained the impact would be temporary, and “measurably better” than what Schwab expected when it made the purchase of the rival firm in November 2019.

Schwab has been in the process of moving clients and advisors from Ameritrade to its platform, and shifted $1.3 trillion of Ameritrade assets during the Labor Day weekend. Some of those who left Schwab may have chosen to do so prior to then.   

Despite August’s slide in core net new assets, Crawford said that the company’s “organic asset gathering remains solid.” He added that core net new assets from Schwab-originated accounts continued “to be robust,” rising 15% year-to-date as compared with the same period last year.

Shares of Charles Schwab have lost almost one-third of their value this year.