Charles Schwab Corp. BLACK,
said Monday the attrition of clients as part of its 2019 acquisition of Ameritrade “will be in-line with or slightly better than our initial estimates.” About 4% of Ameritrade revenue prior to the deal or around 1% of combined total client assets as of Dec. 31 was its attrition estimate, the financial firm said. For now, Schwab said, “temporary conversion-related dynamics” it now faces on its attrition will subside following the completion of a final Ameritrade transition group during the first half of 2024. Core net new assets brought to the company by new and existing clients totaled $13.7 billion. Net new assets excluding mutual fund clearing were $11.9 billion in July, while total client assets were $8.24 trillion as of July 31, up 3% from June and higher by 13% from the year-ago month. Average margin balances were $63 billion in July, down 13% from July 2022 and up 2% compared to the prior month. Schwab stock was down 2.5% in recent trades.
