![]() 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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