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Cash Sorting

All articles tagged with #cash sorting

finance2 years ago•3 min saved

Schwab's Net Interest Revenue Declines as Clients Withdraw Cash

Charles Schwab Corp reported a 24% decline in net interest revenue as clients moved cash into higher-yielding products, causing deposits to fall 28% to $284.4 billion in the third quarter. Despite persistently elevated interest rates, the company stated that cash realignment activity is beginning to slow down. Schwab's adjusted earnings per share slightly beat analysts' estimates, and the firm expects an 8-9% decline in full-year 2023 revenue compared to the prior year. The company plans to issue more debt to build up extra liquidity and has identified opportunities for increased efficiency to deliver at least $1 billion of annual expense savings.

via Yahoo Finance|

#cash-sorting #charles-schwab-corp #deposits

finance2 years ago•0 min saved

Navigating Charles Schwab's Investment Landscape.

Charles Schwab's upcoming earnings report will reveal the impact of cash sorting, where investors move money from low-paying bank accounts to higher-yielding options like money-market funds due to rising interest rates. This trend is expected to affect Schwab's results.

via Barron's|

#cash-sorting #charles-schwab #earnings

finance2 years ago•1 min saved

Charles Schwab faces downgrades and lowered estimates amidst uncertain outlook.

Morgan Stanley analyst Michael Cyprys downgraded Charles Schwab to Equalweight from Overweight due to uncertainty in cash-sorting trends. With the Federal Reserve raising interest rates, Schwab customers are moving cash out of sweep accounts into money market funds at a rate of $20B per month, which will hurt earnings on top of higher funding costs. Cyprys is cutting his EPS estimates by 30% this year and next to reflect the trends in customer sorting and uncertainty around the rates outlook.

via Seeking Alpha|

#cash-sorting #charles-schwab #earnings