![]() ![]() This cadence had partly contributed to the bank's impacted funding sources to $504.59B, with a growing average funding cost of 1% by the latest quarter, compared to $533.31B/ 0.6% in FQ4'22 and $632.37B/ 0.09% in FQ1'22. Similar to its big bank peers, SCHW also experienced a continuous decline in its total deposits to $343.1B in FQ1'23, moderating by -8.4% QoQ from $374.81B and -19.4% YoY from $425.69B. SCHW Is Still A Stellar Investment Thesis - Only Over-Sold Due To The Extreme Pessimism Particularly, its dual-pronged bank and brokerage strategy has allowed the bank to perform well both in low and high-interest-rate environments. In this article, we will be covering SCHW's performance in the recent FQ1'23 quarter, confirming our thesis that the moderation in its stock prices has been unwarranted. ![]() Even if there were any 'bank runs,' only 7% of the bank's checking and savings were at risk then. As a result, it managed assets worth $7.38T (-6.1% YoY) as of March 17, 2023, with only 11.7% (-0.2 points YoY) comprising cash, attributed to its clients' transactional balances from their brokerage accounts. This was due to its position as a brokerage company with value-added banking services. We have previously covered Charles Schwab ( NYSE: SCHW) during the recent banking crisis, and concluded that SCHW had been sorely misunderstood. ![]()
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