Charles Schwab added hundreds of thousands of new accounts in August and saw healthy flows in net new assets, but its total client assets dropped sharply, the company reported.

Schwab opened 332,000 new accounts and added $43.3 billion in core net new assets from new and existing clients last month, the company said in its most recent monthly activity report.

Moreover, net new assets excluding mutual fund clearing were $43.1 billion, according to the report.

Nonetheless, total client assets at the end of August stood at $7.13 trillion, which was 2% lower than at the end of July and 9% lower year-over-year, Schwab said.

Average margin balances in August were $72.9 billion, which was 1% lower than in July and 10% lower year-over-year.

Chief financial officer Peter Crawford said in a release that the firm’s “business momentum remained strong in August” but added that the company saw increased “so-called client cash sorting behavior during the month, consistent with our expectations that a faster rise in the Fed Funds rate could prompt an increase in the pace of sorting.”

But according to the CFO, overall sorting activity volumes “shouldn’t be any higher this cycle than during the prior stretch of rising rates,” and may in fact be lower.

Crawford also said in the release that the firm’s “ongoing success with clients and stronger net interest margin currently have the company’s third quarter revenues on track to grow by 18% to 19% versus the prior year.”