You can save this article by registering for free here. Or sign-in if you have an account.
Article content
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 Aug. 14. 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.
Advertisement 2
Story continues below
This advertisement has not loaded yet, but your article continues below.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, Victoria Wells and others.
Daily content from Financial Times, the world's leading global business publication.
Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, Victoria Wells and others.
Daily content from Financial Times, the world's leading global business publication.
Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
Access articles from across Canada with one account.
Share your thoughts and join the conversation in the comments.
Schwab’s attrition amounts to about four per cent of Ameritrade revenue prior to the deal, or around one per cent of combined total client assets as of the end of last year, Crawford said. The Westlake, Texas-based company repeated its expectation that client deposits will begin growing again later this year.
Schwab has faced pressure from investors in recent months, particularly after the March collapse of several mid-size U.S. lenders focused attention on unrealized losses from securities held on bank balance sheets.
The United States Federal Reserve’s interest rate hikes over the past year have pressured the bank’s banking arm, a pivotal source of revenue, as some clients moved their money from the bank to other investment products, including money-market funds, in a process known as “cash sorting.”
Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.
This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Service and Privacy Policy.
Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.