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Charles Schwab Corp said it has been temporarily affected by attrition from clients as it integrates TD Ameritrade, leading to a decline in net new money for the firm last month.
The company had $4.9 billion of total core net new assets in August, a 64% decline from July and 89% from a year earlier, the company said. Core net new assets excluding Ameritrade brokerage clients equaled $28.1 billion for the month.
Firmwide new money “has been temporarily impacted by asset attrition from clients originating at Ameritrade,” Chief Financial Officer Peter Crawford said in the statement.
The majority of deal-related outflows have been attributed to Ameritrade advisory clients, “including a select number of relationships that did not meet our criteria for an ongoing service relationship,” Crawford said.
The Federal Reserve’s interest rate hikes over the past year have pressured the company’s banking arm, a pivotal source of revenue.