EXHIBIT 99.1
THE CHARLES SCHWAB CORPORATION
News Release
Contacts:
MEDIA: | INVESTORS/ANALYSTS: | |||
Greg Gable | Rich Fowler | |||
Charles Schwab | Charles Schwab | |||
Phone: 415-636-5847 | Phone: 415-636-9869 |
SCHWAB REPORTS QUARTERLY RESULTS
SAN FRANCISCO, April 15, 2008 – The Charles Schwab Corporation announced today that its income from continuing operations (which excludes U.S. Trust) was $305 million for the first quarter of 2008, up 29% from the first quarter of 2007.
Three Months Ended —March 31,— | % Change | ||||||||||
Financial Highlights | 2008 | 2007 | |||||||||
Net revenues (in millions)(1) | $ | 1,307 | $ | 1,153 | 13 | % | |||||
Net income (in millions) | $ | 305 | $ | 273 | 12 | % | |||||
Diluted earnings per share | $ | .26 | $ | .22 | 18 | % | |||||
Pre-tax profit margin(1) | 38.9 | % | 33.9 | % | |||||||
Return on stockholders’ equity | 33 | % | 22 | % | |||||||
Results from continuing operations: | |||||||||||
Income (in millions) | $ | 305 | $ | 236 | 29 | % | |||||
Diluted earnings per share | $ | .26 | $ | .19 | 37 | % |
(1) | Prior period amounts are presented on a continuing operations basis to exclude U.S. Trust, which was sold on July 1, 2007. |
Chairman and CEO Charles Schwab commented, “In the face of a tough economic environment, our clients have remained actively engaged with us in managing their investments. Net new assets totaled $41.3 billion for the first quarter, 5% higher than the prior period and one of our strongest quarters ever. These flows helped total client assets end the first quarter at $1.4 trillion, up 7% from March 2007. Clients opened 246,000 new brokerage accounts during the quarter, up 27% from a year ago and the highest total in almost seven years. In addition, at month-end March we were serving 318,000 banking accounts and 1.3 million retirement plan participants, both new records and up 111% and 16%, respectively, from a year ago.”
CFO Joe Martinetto noted, “Short term interest rates and equity market valuations declined during the first quarter, which put pressure on both net interest revenue and asset management and administration fees. Our continued success in attracting and retaining client assets, however, along with sustained expense discipline, helped offset some of these headwinds and we achieved 13% year-over-year revenue growth, a 39% pre-tax profit margin, and a 37% increase in earnings per share from continuing operations. Our focus on rigorous capital management also continues—we repurchased a total of $350 million in common stock during the first quarter, and achieved a 33% ROE for the period.”
Business highlights for the first quarter (data as of quarter-end unless otherwise noted):
Schwab Investor Services Business (SIS)
• | Client assets enrolled in Schwab advice offers = $52.8 billion, up 3% year-over-year. |
• | Introduced $8.95 online equity trade pricing for clients with at least $1 million in household assets or 120 trades annually. |
• | Announced an offer to rebate the program fee on Schwab Managed PortfoliosTM to investors who bring $25,000 or more in new assets into a new or existing retirement account, providing an opportunity to experience Schwab’s mutual fund-based professional money management with no program fees for the first year. |
Schwab Institutional® Business (SI)
• | Acquired Etelligent Consulting, Inc., a multi-custodian provider of back office capabilities, allowing advisors to outsource major administrative responsibilities such as performance reporting via PortfolioCenter®, Schwab’s portfolio data management system. |
• | Enhanced Schwab’s managed account platform for advisors by expanding to 18 turnkey asset management provider (“TAMP”) participants; building its Managed Account Select®, and Managed Account Access® programs to include more than 230 investment strategies from over 75 money managers; and introducing a Diversified Portfolios offering, which supports multiple strategies in a single account. |
Schwab Corporate and Retirement Services Business (SCRS)
• | Auto enrollment has been adopted by 29% of the bundled retirement plans administered by Schwab, up from 16% a year ago. |
• | Seven Schwab-administered retirement plans were recognized by Pensions and Investments Magazine for excellence in retirement plan investment education. |
• | Retirement plans converted to Schwab administration during the quarter = 38, with approximately 38,400 participants, compared with 37 plans and approximately 29,400 participants in the first quarter of 2007. |
Products and Infrastructure
• | For Charles Schwab Bank: |
• | Balance sheet assets = $16.9 billion, up 47% year-over-year. |
• | Outstanding mortgage and home equity loans = $3.9 billion, up 61% year-over-year. |
• | First mortgage originations during the quarter = $1.1 billion. |
• | Schwab Bank High Yield Investor CheckingTM balances passed the $2 billion mark and ended the quarter at $2.4 billion. |
• | Launched the Schwab Fundamental International Small-Mid Company Index and Emerging Markets Index funds, part of the company’s suite of Fundamental Index mutual funds. |
• | Expanded mutual fund solutions for retirees with the introduction of the Schwab Monthly Income Funds, which are designed to provide monthly income and the opportunity for growth to meet future income needs. |
About Charles Schwab
The Charles Schwab Corporation (Nasdaq: SCHW) is a leading provider of financial services, with more than 300 offices and 7.2 million client brokerage accounts, 1.3 million corporate retirement plan participants, 318,000 banking accounts, and $1.4 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, http://www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Schwab Institutional division. The Charles Schwab Bank (member FDIC) provides banking and mortgage services and products. More information is available atwww.schwab.com.
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THE CHARLES SCHWAB CORPORATION
Consolidated Statements of Income
(In millions, except per share amounts)
(Unaudited)
Three Months Ended March 31, | ||||||||
2008 | 2007 | |||||||
Net Revenues | ||||||||
Asset management and administration fees | $ | 613 | $ | 534 | ||||
Interest revenue | 510 | 551 | ||||||
Interest expense | (91 | ) | (167 | ) | ||||
Net interest revenue | 419 | 384 | ||||||
Trading revenue | 246 | 202 | ||||||
Other | 29 | 33 | ||||||
Total net revenues | 1,307 | 1,153 | ||||||
Expenses Excluding Interest | ||||||||
Compensation and benefits | 437 | 430 | ||||||
Professional services | 84 | 74 | ||||||
Occupancy and equipment | 74 | 68 | ||||||
Advertising and market development | 76 | 66 | ||||||
Communications | 52 | 49 | ||||||
Depreciation and amortization | 38 | 39 | ||||||
Other | 38 | 36 | ||||||
Total expenses excluding interest | 799 | 762 | ||||||
Income from continuing operations before taxes on income | 508 | 391 | ||||||
Taxes on income | (203 | ) | (155 | ) | ||||
Income from continuing operations | 305 | 236 | ||||||
Income from discontinued operations, net of tax | — | 37 | ||||||
Net Income | $ | 305 | $ | 273 | ||||
Weighted-Average Common Shares Outstanding — Diluted | 1,159 | 1,266 | ||||||
Earnings Per Share — Basic | ||||||||
Income from continuing operations | $ | .27 | $ | .19 | ||||
Income from discontinued operations, net of tax | — | $ | .03 | |||||
Net income | $ | .27 | $ | .22 | ||||
Earnings Per Share — Diluted | ||||||||
Income from continuing operations | $ | .26 | $ | .19 | ||||
Income from discontinued operations, net of tax | — | $ | .03 | |||||
Net income | $ | .26 | $ | .22 | ||||
Dividends Declared Per Common Share | $ | .050 | $ | .050 | ||||
See Notes to Consolidated Statements of Income and Financial and Operating Highlights.
THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)
Q1-08 % change | 2008 | 2007 | ||||||||||||||||||||||||
(In millions, except per share amounts and as noted) | vs. Q1-07 | vs. Q4-07 | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||||||
Net Revenues(1) | ||||||||||||||||||||||||||
Asset management and administration fees | 15 | % | (2 | %) | $ | 613 | $ | 628 | $ | 610 | $ | 586 | $ | 534 | ||||||||||||
Net interest revenue | 9 | % | (5 | %) | 419 | 441 | 433 | 389 | 384 | |||||||||||||||||
Trading revenue | 22 | % | 2 | % | 246 | 242 | 218 | 198 | 202 | |||||||||||||||||
Other | (12 | %) | (15 | %) | 29 | 34 | 30 | 32 | 33 | |||||||||||||||||
Total net revenues | 13 | % | (3 | %) | 1,307 | 1,345 | 1,291 | 1,205 | 1,153 | |||||||||||||||||
Expenses Excluding Interest(1) | ||||||||||||||||||||||||||
Compensation and benefits | 2 | % | (4 | %) | 437 | 455 | 447 | 449 | 430 | |||||||||||||||||
Professional services | 14 | % | (5 | %) | 84 | 88 | 81 | 81 | 74 | |||||||||||||||||
Occupancy and equipment | 9 | % | — | 74 | 74 | 70 | 70 | 68 | ||||||||||||||||||
Advertising and market development | 15 | % | 12 | % | 76 | 68 | 44 | 52 | 66 | |||||||||||||||||
Communications | 6 | % | 4 | % | 52 | 50 | 50 | 51 | 49 | |||||||||||||||||
Depreciation and amortization | (3 | %) | (3 | %) | 38 | 39 | 39 | 39 | 39 | |||||||||||||||||
Other | 6 | % | (16 | %) | 38 | 45 | 48 | 39 | 36 | |||||||||||||||||
Total expenses excluding interest | 5 | % | (2 | %) | 799 | 819 | 779 | 781 | 762 | |||||||||||||||||
Income from continuing operations before taxes on income | 30 | % | (3 | %) | 508 | 526 | 512 | 424 | 391 | |||||||||||||||||
Taxes on income(1) | 31 | % | (8 | %) | (203 | ) | (221 | ) | (189 | ) | (168 | ) | (155 | ) | ||||||||||||
Income from continuing operations | 29 | % | — | 305 | 305 | 323 | 256 | 236 | ||||||||||||||||||
Income from discontinued operations, net of tax | N/M | N/M | — | 3 | 1,211 | 36 | 37 | |||||||||||||||||||
Net Income | 12 | % | (1 | %) | $ | 305 | $ | 308 | $ | 1,534 | $ | 292 | $ | 273 | ||||||||||||
Diluted earnings per share from continuing operations | 37 | % | — | $ | .26 | $ | .26 | $ | .27 | $ | .20 | $ | .19 | |||||||||||||
Basic earnings per share | 23 | % | — | $ | .27 | $ | .27 | $ | 1.29 | $ | .24 | $ | .22 | |||||||||||||
Diluted earnings per share | 18 | % | — | $ | .26 | $ | .26 | $ | 1.28 | $ | .23 | $ | .22 | |||||||||||||
Dividends declared per common share | — | — | $ | .050 | $ | .050 | $ | 1.050 | $ | .050 | $ | .050 | ||||||||||||||
Weighted-average common shares outstanding - diluted | (8 | %) | (1 | %) | 1,159 | 1,167 | 1,201 | 1,257 | 1,266 | |||||||||||||||||
Performance Measures | ||||||||||||||||||||||||||
Pre-tax profit margin from continuing operations(1) | 38.9 | % | 39.1 | % | 39.7 | % | 35.2 | % | 33.9 | % | ||||||||||||||||
Annualized return on stockholders’ equity | 33 | % | 35 | % | 145 | % | 23 | % | 22 | % | ||||||||||||||||
Financial Condition(at quarter end, in billions) | ||||||||||||||||||||||||||
Cash and investments segregated(1) | 6 | % | 26 | % | $ | 11.1 | $ | 8.8 | $ | 9.4 | $ | 9.1 | $ | 10.5 | ||||||||||||
Receivables from brokerage clients | 6 | % | (7 | %) | $ | 11.5 | $ | 12.3 | $ | 11.2 | $ | 11.3 | $ | 10.8 | ||||||||||||
Loans to banking clients(1) | 67 | % | 18 | % | $ | 4.0 | $ | 3.4 | $ | 3.1 | $ | 2.7 | $ | 2.4 | ||||||||||||
Total assets | (6 | %) | 5 | % | $ | 44.6 | $ | 42.3 | $ | 39.3 | $ | 49.0 | $ | 47.3 | ||||||||||||
Deposits from banking clients(1) | 37 | % | 13 | % | $ | 15.6 | $ | 13.8 | $ | 12.5 | $ | 11.7 | $ | 11.4 | ||||||||||||
Payables to brokerage clients | 7 | % | — | $ | 20.4 | $ | 20.3 | $ | 18.9 | $ | 18.8 | $ | 19.1 | |||||||||||||
Long-term debt(1) | 125 | % | — | $ | .9 | $ | .9 | $ | .6 | $ | .4 | $ | .4 | |||||||||||||
Stockholders’ equity | (27 | %) | (3 | %) | $ | 3.6 | $ | 3.7 | $ | 3.4 | $ | 5.1 | $ | 4.9 | ||||||||||||
Other | ||||||||||||||||||||||||||
Full-time equivalent employees (at quarter end, in thousands)(1, 2) | 3 | % | 1 | % | 13.4 | 13.3 | 12.9 | 12.9 | 13.0 | |||||||||||||||||
Annualized net revenues per average full-time equivalent employee (in thousands)(1, 3) | 7 | % | (4 | %) | $ | 391 | $ | 409 | $ | 400 | $ | 371 | $ | 366 | ||||||||||||
Capital expenditures - cash purchases of equipment, office facilities, and property, net (in millions)(1) | 23 | % | (8 | %) | $ | 48 | $ | 52 | $ | 34 | $ | 43 | $ | 39 | ||||||||||||
Clients’ Daily Average Trades (in thousands) | ||||||||||||||||||||||||||
Revenue trades(4) | 19 | % | — | 274.6 | 275.5 | 253.5 | 221.4 | 230.4 | ||||||||||||||||||
Schwab Investor Services (5) | 25 | % | 8 | % | 23.3 | 21.5 | 20.5 | 18.6 | 18.6 | |||||||||||||||||
Schwab Institutional®(5) | 73 | % | 25 | % | 27.9 | 22.3 | 19.0 | 16.7 | 16.1 | |||||||||||||||||
Schwab Corporate and Retirement Services(5) | 17 | % | 8 | % | 1.4 | 1.3 | 1.3 | 1.2 | 1.2 | |||||||||||||||||
Total | 23 | % | 2 | % | 327.2 | 320.6 | 294.3 | 257.9 | 266.3 | |||||||||||||||||
Average Revenue Per Revenue Trade(4) | 1 | % | 4 | % | $ | 14.47 | $ | 13.87 | $ | 13.56 | $ | 14.27 | $ | 14.33 | ||||||||||||
(1) | Prior period amounts are presented on a continuing operations basis to exclude U.S. Trust Corporation, which was sold on July 1, 2007. |
(2) | Includes 365 employees related to the acquisition of The 401(k) Company on March 31, 2007. |
(3) | Includes 365 employees related to the acquisition of The 401(k) Company beginning with the second quarter of 2007. |
(4) | Includes all client trades that generate either commission revenue or revenue from principal markups (i.e., fixed income); also known as DART. |
(5) | Includes eligible trades executed by clients who participate in one or more of the Company’s asset-based pricing relationships. |
N/M | Not meaningful. |
See Notes to Consolidated Statements of Income and Financial and Operating Highlights.
THE CHARLES SCHWAB CORPORATION
Notes to Consolidated Statements of Income and Financial and Operating Highlights
(Unaudited)
The Company
The consolidated statements of income and financial and operating highlights include The Charles Schwab Corporation (CSC) and its majority-owned subsidiaries (collectively referred to as the Company), including Charles Schwab & Co., Inc. and Charles Schwab Bank. Prior period amounts are presented on a continuing operations basis to exclude U.S. Trust Corporation, which was sold on July 1, 2007. The consolidated statements of income and financial and operating highlights should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2007. All material intercompany balances and transactions have been eliminated.
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Growth in Client Assets and Accounts
(Unaudited)
Q1-08 % change | 2008 | 2007 | ||||||||||||||||||||||||
(In billions, at quarter end, except as noted) | vs. Q1-07 | vs. Q4-07 | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||||||
Assets in client accounts | ||||||||||||||||||||||||||
Schwab One®, other cash equivalents and deposits from banking clients | 17 | % | 2 | % | $ | 36.5 | $ | 35.9 | $ | 33.5 | $ | 31.7 | $ | 31.3 | ||||||||||||
Proprietary funds (Schwab Funds®and Laudus FundsTM): | ||||||||||||||||||||||||||
Money market funds | 42 | % | 11 | % | 203.3 | 183.1 | 160.3 | 147.4 | 143.4 | |||||||||||||||||
Equity and bond funds | (20 | %) | (17 | %) | 49.0 | 58.7 | 64.3 | 67.1 | 61.1 | |||||||||||||||||
Total proprietary funds | 23 | % | 4 | % | 252.3 | 241.8 | 224.6 | 214.5 | 204.5 | |||||||||||||||||
Mutual Fund Marketplace®(1): | ||||||||||||||||||||||||||
Mutual Fund OneSource® | (2 | %) | (7 | %) | 168.2 | 180.9 | 190.8 | 180.5 | 171.9 | |||||||||||||||||
Mutual fund clearing services | 15 | % | (5 | %) | 77.8 | 81.8 | 82.0 | 73.4 | 67.6 | |||||||||||||||||
Other third-party mutual funds | 13 | % | (1 | %) | 224.2 | 225.7 | 224.5 | 221.4 | 198.2 | |||||||||||||||||
Total Mutual Fund Marketplace | 7 | % | (4 | %) | 470.2 | 488.4 | 497.3 | 475.3 | 437.7 | |||||||||||||||||
Total mutual fund assets | 13 | % | (1 | %) | 722.5 | 730.2 | 721.9 | 689.8 | 642.2 | |||||||||||||||||
Equity and other securities(1) | — | (9 | %) | 498.4 | 545.2 | 547.8 | 530.4 | 500.6 | ||||||||||||||||||
Fixed income securities | 3 | % | — | 146.4 | 145.8 | 148.3 | 142.6 | 141.9 | ||||||||||||||||||
Margin loans outstanding | 5 | % | (7 | %) | (10.8 | ) | (11.6 | ) | (10.8 | ) | (10.9 | ) | (10.3 | ) | ||||||||||||
Total client assets | 7 | % | (4 | %) | $ | 1,393.0 | $ | 1,445.5 | $ | 1,440.7 | $ | 1,383.6 | $ | 1,305.7 | ||||||||||||
Client assets by business | ||||||||||||||||||||||||||
Schwab Investor Services(2) | 2 | % | (5 | %) | $ | 595.5 | $ | 625.3 | $ | 624.5 | $ | 607.3 | $ | 582.4 | ||||||||||||
Schwab Institutional | 9 | % | (2 | %) | 569.7 | 583.5 | 581.0 | 556.4 | 524.5 | |||||||||||||||||
Schwab Corporate and Retirement Services(2) | 15 | % | (4 | %) | 227.8 | 236.7 | 235.2 | 219.9 | 198.8 | |||||||||||||||||
Total client assets by business | 7 | % | (4 | %) | $ | 1,393.0 | $ | 1,445.5 | $ | 1,440.7 | $ | 1,383.6 | $ | 1,305.7 | ||||||||||||
Net growth in assets in client accounts (for the quarter ended) | ||||||||||||||||||||||||||
Net new assets | ||||||||||||||||||||||||||
Schwab Investor Services(2) | 43 | % | (4 | %) | $ | 13.7 | $ | 14.3 | $ | 9.4 | $ | 5.3 | $ | 9.6 | ||||||||||||
Schwab Institutional | 8 | % | 11 | % | 19.9 | 17.9 | 17.1 | 12.1 | 18.5 | |||||||||||||||||
Schwab Corporate and Retirement Services(2, 3, 4) | (71 | %) | 5 | % | 7.7 | 7.3 | 10.8 | 11.6 | 26.3 | |||||||||||||||||
Total net new client assets | (24 | %) | 5 | % | 41.3 | 39.5 | 37.3 | 29.0 | 54.4 | |||||||||||||||||
Net market (losses) gains(4) | N/M | 170 | % | (93.8 | ) | (34.7 | ) | 19.8 | 48.9 | 12.1 | ||||||||||||||||
Net (decline) growth | N/M | N/M | $ | (52.5 | ) | $ | 4.8 | $ | 57.1 | $ | 77.9 | $ | 66.5 | |||||||||||||
New brokerage accounts(in thousands, for the quarter ended) | 27 | % | 8 | % | 246 | 227 | 183 | 206 | 193 | |||||||||||||||||
Clients(in thousands) | ||||||||||||||||||||||||||
Active Brokerage Accounts | 5 | % | 2 | % | 7,162 | 7,049 | 6,940 | 6,880 | 6,791 | |||||||||||||||||
Banking Accounts | 111 | % | 21 | % | 318 | 262 | 212 | 177 | 151 | |||||||||||||||||
Corporate Retirement Plan Participants(5) | 16 | % | 5 | % | 1,271 | 1,205 | 1,169 | 1,138 | 1,091 | |||||||||||||||||
(1) | Excludes all proprietary money market, equity, and bond funds. |
(2) | In connection with recent organizational changes, the Company is reporting separately client assets for the Schwab Corporate and Retirement Services business, which was historically included in the Schwab Investor Services business. Additionally, the mutual fund clearing services business, which was historically disclosed separately, is included within the Schwab Corporate and Retirement Services business. |
(3) | Includes inflows of $17.8 billion in the first quarter of 2007 related to the acquisition of The 401(k) Company. Includes inflows of $3.3 billion in the third quarter of 2007 related to a mutual fund clearing services client. Effective the second quarter of 2007, amount includes balances covered by 401(k) record keeping-only services, which totaled $5.2 billion at May 31, 2007, related to the March 2007 acquisition of The 401(k) Company. |
(4) | Effective the third quarter of 2007, amounts include the Company’s mutual fund clearing services business’ daily net settlements, with a corresponding change in net market gains (losses). All prior period amounts have been recast to reflect this change. |
(5) | The first quarter of 2007 includes 398,000 related to the acquisition of The 401(k) Company. Effective March 31, 2007, amount also includes 100,000 related to Personal Choice Retirement participants at Schwab. |
N/M Not meaningful
The Charles Schwab Corporation Monthly Market Activity Report For March 2008
2007 Mar | 2008 Jan | % change | |||||||||||||||||||||||||||||||||||||||||
Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Feb | Mar | Mo. | Yr. | |||||||||||||||||||||||||||||||
Change in Client Assets | |||||||||||||||||||||||||||||||||||||||||||
Net New Assets (1, 2, 3) | 29.8 | 3.8 | 16.9 | 8.3 | 13.5 | 14.7 | 9.1 | 11.7 | 12.1 | 15.7 | 11.1 | 12.5 | 17.7 | 42 | % | (41 | %) | ||||||||||||||||||||||||||
Net Market Gains (Losses)(3) | 9.9 | 31.7 | 30.4 | (13.2 | ) | (26.4 | ) | 4.4 | 41.8 | 31.4 | (50.4 | ) | (15.7 | ) | (60.6 | ) | (17.8 | ) | (15.4 | ) | |||||||||||||||||||||||
Total Client Assets(2) | 1,305.7 | 1,341.2 | 1,388.5 | 1,383.6 | 1,370.7 | 1,389.8 | 1,440.7 | 1,483.8 | 1,445.5 | 1,445.5 | 1,396.0 | 1,390.7 | 1,393.0 | — | 7 | % | |||||||||||||||||||||||||||
New Brokerage Accounts | 68 | 84 | 64 | 58 | 62 | 64 | 57 | 75 | 74 | 78 | 94 | 69 | 83 | 20 | % | 22 | % | ||||||||||||||||||||||||||
Clients | |||||||||||||||||||||||||||||||||||||||||||
Active Brokerage Accounts | 6,791 | 6,835 | 6,859 | 6,880 | 6,898 | 6,922 | 6,940 | 6,974 | 7,013 | 7,049 | 7,093 | 7,119 | 7,162 | 1 | % | 5 | % | ||||||||||||||||||||||||||
Banking Accounts | 151 | 154 | 165 | 177 | 187 | 200 | 212 | 229 | 247 | 262 | 286 | 302 | 318 | 5 | % | 111 | % | ||||||||||||||||||||||||||
Corporate Retirement Plan Participants(4) | 1,091 | 1,117 | 1,128 | 1,138 | 1,169 | 1,167 | 1,169 | 1,182 | 1,185 | 1,205 | 1,256 | 1,263 | 1,271 | 1 | % | 16 | % | ||||||||||||||||||||||||||
Market Indices | |||||||||||||||||||||||||||||||||||||||||||
Dow Jones Industrial Average | 12,354 | 13,063 | 13,628 | 13,409 | 13,212 | 13,358 | 13,896 | 13,930 | 13,372 | 13,265 | 12,650 | 12,266 | 12,263 | — | (1 | %) | |||||||||||||||||||||||||||
Nasdaq Composite | 2,422 | 2,525 | 2,605 | 2,603 | 2,546 | 2,596 | 2,702 | 2,859 | 2,661 | 2,652 | 2,390 | 2,271 | 2,279 | — | (6 | %) | |||||||||||||||||||||||||||
Standard & Poor’s 500 | 1,421 | 1,482 | 1,531 | 1,503 | 1,455 | 1,474 | 1,527 | 1,549 | 1,481 | 1,468 | 1,379 | 1,331 | 1,323 | (1 | %) | (7 | %) | ||||||||||||||||||||||||||
Clients’ Daily Average Trades | |||||||||||||||||||||||||||||||||||||||||||
Revenue Trades(5) | 211.4 | 220.7 | 225.1 | 218.1 | 259.5 | 266.2 | 231.5 | 277.3 | 297.2 | 250.7 | 311.2 | 242.7 | 268.1 | 10 | % | 27 | % | ||||||||||||||||||||||||||
Schwab Investor Services(6) | 17.9 | 17.8 | 21.4 | 16.7 | 20.3 | 20.5 | 21.3 | 20.1 | 21.1 | 23.4 | 24.8 | 21.9 | 23.1 | 5 | % | 29 | % | ||||||||||||||||||||||||||
Schwab Institutional® (6) | 16.1 | 16.8 | 17.3 | 15.8 | 18.9 | 20.2 | 17.4 | 20.1 | 24.9 | 22.2 | 32.0 | 23.5 | 28.0 | 19 | % | 74 | % | ||||||||||||||||||||||||||
Schwab Corporate & Retirement Services(6) | 1.2 | 1.3 | 1.2 | 1.1 | 1.4 | 1.2 | 1.2 | 1.2 | 1.2 | 1.4 | 1.5 | 1.3 | 1.3 | — | 8 | % | |||||||||||||||||||||||||||
Total | 246.6 | 256.6 | 265.0 | 251.7 | 300.1 | 308.1 | 271.4 | 318.7 | 344.4 | 297.7 | 369.5 | 289.4 | 320.5 | 11 | % | 30 | % | ||||||||||||||||||||||||||
Daily Average Market Share Volume | |||||||||||||||||||||||||||||||||||||||||||
NYSE | 1,675 | 1,538 | 1,543 | 1,635 | 1,662 | 1,883 | 1,378 | 1,324 | 1,630 | 1,320 | 1,927 | 1,514 | 1,727 | 14 | % | 3 | % | ||||||||||||||||||||||||||
Nasdaq | 2,071 | 2,074 | 2,114 | 2,192 | 2,226 | 2,334 | 1,921 | 2,166 | 2,367 | 1,900 | 2,696 | 2,344 | 2,294 | (2 | %) | 11 | % | ||||||||||||||||||||||||||
Total | 3,746 | 3,612 | 3,657 | 3,827 | 3,888 | 4,217 | 3,299 | 3,490 | 3,997 | 3,220 | 4,623 | 3,858 | 4,021 | 4 | % | 7 | % | ||||||||||||||||||||||||||
Mutual Fund Net Buys (Sells)(7) | |||||||||||||||||||||||||||||||||||||||||||
Large Capitalization Stock | 602.3 | 138.8 | 179.2 | 376.5 | 496.2 | 26.8 | 337.0 | 240.6 | (327.5 | ) | (130.3 | ) | (721.5 | ) | 819.1 | (69.3 | ) | ||||||||||||||||||||||||||
Small / Mid Capitalization Stock | 370.1 | 408.9 | 247.1 | 247.5 | 155.3 | (362.7 | ) | (2.9 | ) | (73.8 | ) | (641.9 | ) | (1,009.5 | ) | (1,168.7 | ) | (17.2 | ) | (410.0 | ) | ||||||||||||||||||||||
International | 539.5 | 1,046.0 | 874.2 | 719.5 | 994.6 | 235.7 | 663.1 | 842.2 | (80.6 | ) | 262.5 | (800.2 | ) | 283.1 | (229.8 | ) | |||||||||||||||||||||||||||
Specialized | 16.2 | 126.4 | 259.4 | 62.9 | (5.8 | ) | (289.1 | ) | 78.6 | 154.3 | (191.3 | ) | (132.1 | ) | 53.0 | 206.6 | (230.2 | ) | |||||||||||||||||||||||||
Hybrid | 474.1 | 411.5 | 438.6 | 302.9 | 190.1 | (47.4 | ) | 202.1 | 179.6 | 117.9 | 199.2 | 202.0 | 601.8 | 457.2 | |||||||||||||||||||||||||||||
Taxable Bond | 1,892.8 | 1,363.5 | 2,132.9 | 1,148.7 | 388.6 | (1,908.9 | ) | 98.1 | 953.3 | (379.4 | ) | (585.3 | ) | 1,407.0 | 1,047.6 | (845.3 | ) | ||||||||||||||||||||||||||
Tax-Free Bond | 406.7 | 234.7 | 465.0 | 204.7 | 169.4 | (267.4 | ) | 111.1 | 96.7 | (152.1 | ) | (519.1 | ) | 204.1 | (31.6 | ) | 10.9 | ||||||||||||||||||||||||||
Money Market Funds | 2,129.4 | (1,747.2 | ) | 3,751.1 | 829.9 | 3,512.0 | 6,490.9 | 876.8 | 4,280.3 | 8,244.8 | 7,942.0 | 7,632.2 | 3,996.8 | 5,478.6 |
(1) | March 2007 includes inflows of $17.8 billion related to the acquisition of The 401(k) Company. August 2007 includes an inflow of $3.3 billion, related to a mutual fund clearing services client. |
(2) | Effective May 2007, amount includes balances covered by 401(k) record keeping-only services, which totaled $5.2 billion at May 31, 2007, related to the March 2007 acquisition of The 401(k) Company. |
(3) | Effective August 2007, amounts include the Company’s mutual fund clearing services business’ daily net settlements, with a corresponding change in net market gains (losses). All prior period amounts have been recast to reflect this change. |
(4) | March 2007 includes 398,000 related to the acquisition of The 401(k) Company. Effective March 2007, amount also includes 100,000 related to Personal Choice Retirement participants at Schwab. |
(5) | Includes all client trades that generate either commission revenue or revenue from principal markups (i.e., fixed income); also known as DART. |
(6) | Includes eligible trades executed by clients who participate in one or more of the Company’s asset-based pricing relationships. |
(7) | Represents the principal value of client mutual fund transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to Investment Managers. |