Make Kitco Your Homepage

Charles Schwab a 'safe port' in banking storm as weekly inflows surge

Kitco News

March 17 (Reuters) - Financial broker Charles Schwab (SCHW.N) on Friday reported $16.5 billion in core net new assets for the week on strong inflows from clients moving funds amid several high-profile collapses that have whipsawed the U.S. banking sector.

The Texas-based company's stock pared losses to trade 3.2% lower. It had fallen as much as 6.4% earlier in the day.

Charles Schwab had also recorded an influx of $4 billion in assets to its parent company last Friday as clients shifted assets to the broker from other firms, CEO Walt Bettinger told Reuters in an interview earlier this week. read more

The implosion of SVB Financial Group (SIVB.O) and Signature Bank (SBNY.O) last week, triggered by massive deposit outflows, has stoked contagion fears and hammered financial stocks.

"Charles Schwab remains a safe port in a storm, driven by its conservative balance sheet, strong liquidity position," the company said in a statement.

The disclosure comes days after the company reported a 28% decline in average margin balances and a 4% fall in total client assets for February, but assured investors that it had ample liquidity with more than 80% of its total deposits within the Federal Deposit Insurance Corporation insurance limits. read more

Reporting by Mehnaz Yasmin in Bengaluru; Editing by Devika Syamnath
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.