Schwab Reveals $53B in New Client Assets for March, Seeks to Calm Investors
Charles Schwab Corp.’s top executives said core net new client assets hit $53 billion in March, a month that rocked the company as turmoil engulfed the broader banking sector.
The March flows were the second-highest for that month in the firm’s history, its founder and namesake Charles Schwab and Chief Executive Officer Walt Bettinger said Thursday in a statement.
They’ve been seeking to assuage concerns about Schwab’s outlook, after investor attention turned to ballooning unrealized losses in its financial statements.
Related: Schwab’s $7T Empire Is Showing Cracks
Investors dumped shares of Schwab, which lost more than 37% of their value in the first three months of the year — making it Schwab’s worst quarter since the 2008 financial crisis.
“While the first quarter was a challenging time, for sure, reflecting negative investor sentiment, ongoing interest rate hikes, and regional banking turmoil, Schwab’s client-centric growth model remains firmly intact and is performing well,” Schwab and Bettinger wrote in their statement.
Though Schwab is known largely for its brokerage, the company’s bank operations are pivotal to its health.
