EXHIBIT 99.1
THE CHARLES SCHWAB CORPORATION
News Release
Contacts:
MEDIA: | INVESTORS/ANALYSTS: | |||
Alison Wertheim | Rich Fowler | |||
Charles Schwab | Charles Schwab | |||
Phone: 415-636-5812 | Phone: 415-636-9869 |
SCHWAB REPORTS QUARTERLY RESULTS
Strong client relationships and financial discipline yield 35% increase in EPS from continuing operations.
SAN FRANCISCO, July 16, 2008 – The Charles Schwab Corporation announced today that its income from continuing operations (which excludes U.S. Trust) was $313 million for the second quarter of 2008, up 22% from the second quarter of 2007. For the six months ended June 30, 2008, the company’s income from continuing operations was $618 million, up 26% from the first half of 2007.
Three Months Ended —June 30,— | % Change | Six Months Ended —June 30,— | % Change | |||||||||||||||||||
Financial Highlights | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||
Net revenues (in millions)(1) | $ | 1,308 | $ | 1,205 | 9 | % | $ | 2,615 | $ | 2,358 | 11 | % | ||||||||||
Net income (in millions) | $ | 295 | $ | 292 | 1 | % | $ | 600 | $ | 565 | 6 | % | ||||||||||
Diluted earnings per share | $ | .26 | $ | .23 | 13 | % | $ | .52 | $ | .45 | 16 | % | ||||||||||
Pre-tax profit margin(1) | 39.3 | % | 35.2 | % | 39.1 | % | 34.6 | % | ||||||||||||||
Return on stockholders’ equity | 32 | % | 23 | % | 31 | % | 22 | % | ||||||||||||||
Results from continuing operations: | ||||||||||||||||||||||
Income (in millions) | $ | 313 | $ | 256 | 22 | % | $ | 618 | $ | 492 | 26 | % | ||||||||||
Diluted earnings per share | $ | .27 | $ | .20 | 35 | % | $ | .53 | $ | .39 | 36 | % |
(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 said, “I’m very pleased with how our business model continued to deliver great service and consistent financial results in the second quarter. Clients brought $26 billion in net new assets to the company and total client assets ended June at $1.4 trillion, up 1% from June 2007. Active brokerage accounts and retirement plan participants were up 5% and 13% over the year-earlier levels, and banking accounts more than doubled to 355,000. Even in a tough market environment, our business showed standout growth and profitability.”
CFO Joe Martinetto commented, “With strong asset inflows from clients during the second quarter, we achieved 9% year-over-year growth in net revenue despite headwinds from lower short term interest rates and flat to down equity markets. Our ongoing financial discipline helped limit overall expense growth to just 2% and fueled a 39.3% pre-tax profit margin, a 35% increase in earnings per share from continuing operations, and a 32% return on equity. Our financial discipline is also reflected in a strong balance sheet that includes a high-quality loan portfolio – mortgage delinquencies at Schwab Bank were 0.33% of outstanding balances as of month-end June, a fraction of the national average, and loan charge-offs totaled just $0.8 million for the quarter.”
Business highlights for the second quarter (data as of quarter-end unless otherwise noted):
Schwab Investor Services Business (SIS)
• | Client assets enrolled in Schwab advice offers = $52.8 billion, down 4% year-over-year. Accounts enrolled = 211,000, up 1% year-over-year. |
• | Unveiled a website, geared towards providing 25-to-40 year olds with relevant financial information via articles, calculators, charts and glossaries, as well as a peer comparison tool. |
Schwab Institutional® Business (SI)
• | Announced a comprehensive platform, “Schwab Business Start-up Solutions,” to support registered investment advisors transitioning to independence, including start-up financing, technology, marketing, and back office support. |
• | Enhanced outsourcing capabilities for registered investment advisors through Schwab Performance Technologies PortfolioServicesTM, a full-service performance reporting solution based on Schwab’s PortfolioCenter® data management software, and the outsourcing service experience of recently acquired Etelligent Consulting, Inc. |
Schwab Corporate and Retirement Services Business (SCRS)
• | Expanded Charles Schwab Trust Company’s offering of target-date collective trust funds to include the Schwab Indexed Retirement Trust FundsTM, designed specifically for defined contribution plan participants. |
• | Introduced Schwab Retirement SolutionsTM, in partnership with Schwab Investor Services, to provide business owners with retirement plan consulting and administration services for plans of all types and sizes. |
• | Enhanced Schwab Personal Choice Retirement Account® (PCRA) capabilities, enabling participants to open multiple self-directed brokerage accounts within a retirement plan account to hold investments for both Traditional and Roth contributions as well as managed account programs. |
Products and Infrastructure
• | For Charles Schwab Bank: |
• | Balance sheet assets = $21.6 billion, up 72% year-over-year. |
• | Outstanding mortgage and home equity loans = $4.7 billion, up 76% year-over-year. |
• | First mortgage originations during the quarter = $1.1 billion. |
• | Schwab Bank’s High Yield Investor CheckingTM celebrated its first anniversary, ending the second quarter with 239,000 accounts and $2.6 billion in balances. |
• | Schwab and Texas Tech announced the inaugural Schwab Research Scholar, who will study the competencies sought by financial services institutions as they hire new generations of employees. The new Schwab Technology Complex at Texas Tech was also unveiled, with an expected opening date of fall 2008. These activities are funded by a grant from the Charles Schwab Foundation. |
• | Expanded the Laudus Mondrian Funds line-up by introducing a series of funds that will invest primarily in global, international, and emerging market equities. |
• | Schwab announced the winners of the inaugural National Financial Literacy Challenge, a test of personal finance understanding for U.S. high school students. The ten highest-performing students received a $2,500 college scholarship, and a $1,000 contribution was made to the program that provided their personal finance education. |
Supporting schedules are either attached or located at:http://www.aboutschwab.com/media/xls/q2_2008_schedule.xls
About Charles Schwab
The Charles Schwab Corporation (Nasdaq: SCHW) is a leading provider of financial services, with more than 300 offices and 7.3 million client brokerage accounts, 1.3 million corporate retirement plan participants, 355,000 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 June 30, | Six Months Ended June 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Net Revenues | ||||||||||||||||
Asset management and administration fees | $ | 618 | $ | 586 | $ | 1,231 | $ | 1,120 | ||||||||
Interest revenue | 478 | 553 | 988 | 1,104 | ||||||||||||
Interest expense | (51 | ) | (164 | ) | (142 | ) | (331 | ) | ||||||||
Net interest revenue | 427 | 389 | 846 | 773 | ||||||||||||
Trading revenue | 230 | 198 | 476 | 400 | ||||||||||||
Other | 33 | 32 | 62 | 65 | ||||||||||||
Total net revenues | 1,308 | 1,205 | 2,615 | 2,358 | ||||||||||||
Expenses Excluding Interest | ||||||||||||||||
Compensation and benefits | 438 | 449 | 875 | 879 | ||||||||||||
Professional services | 84 | 81 | 168 | 155 | ||||||||||||
Occupancy and equipment | 72 | 70 | 146 | 138 | ||||||||||||
Advertising and market development | 58 | 52 | 134 | 118 | ||||||||||||
Communications | 52 | 51 | 104 | 100 | ||||||||||||
Depreciation and amortization | 37 | 39 | 75 | 78 | ||||||||||||
Other | 53 | 39 | 91 | 75 | ||||||||||||
Total expenses excluding interest | 794 | 781 | 1,593 | 1,543 | ||||||||||||
Income from continuing operations before taxes on income | 514 | 424 | 1,022 | 815 | ||||||||||||
Taxes on income | (201 | ) | (168 | ) | (404 | ) | (323 | ) | ||||||||
Income from continuing operations | 313 | 256 | 618 | 492 | ||||||||||||
(Loss) income from discontinued operations, net of tax | (18 | ) | 36 | (18 | ) | 73 | ||||||||||
Net Income | $ | 295 | $ | 292 | $ | 600 | $ | 565 | ||||||||
Weighted-Average Common Shares Outstanding — Diluted | 1,154 | 1,257 | 1,157 | 1,262 | ||||||||||||
Earnings Per Share — Basic | ||||||||||||||||
Income from continuing operations | $ | .27 | $ | .21 | $ | .54 | $ | .39 | ||||||||
(Loss) income from discontinued operations, net of tax | $ | (.01 | ) | $ | .03 | $ | (.02 | ) | $ | .06 | ||||||
Net income | $ | .26 | $ | .24 | $ | .52 | $ | .45 | ||||||||
Earnings Per Share — Diluted | ||||||||||||||||
Income from continuing operations | $ | .27 | $ | .20 | $ | .53 | $ | .39 | ||||||||
(Loss) income from discontinued operations, net of tax | $ | (.01 | ) | $ | .03 | $ | (.01 | ) | $ | .06 | ||||||
Net income | $ | .26 | $ | .23 | $ | .52 | $ | .45 | ||||||||
Dividends Declared Per Common Share | $ | .05 | $ | .05 | $ | .10 | $ | .10 | ||||||||
See Notes to Consolidated Statements of Income and Financial and Operating Highlights.
THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)
Q2-08 % change | 2008 | 2007 | ||||||||||||||||||||||||
(In millions, except per share amounts and as noted) | vs. Q2-07 | vs. Q1-08 | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | |||||||||||||||||||
Net Revenues(1) | ||||||||||||||||||||||||||
Asset management and administration fees | 5 | % | 1 | % | $ | 618 | $ | 613 | $ | 628 | $ | 610 | $ | 586 | ||||||||||||
Net interest revenue | 10 | % | 2 | % | 427 | 419 | 441 | 433 | 389 | |||||||||||||||||
Trading revenue | 16 | % | (7 | %) | 230 | 246 | 242 | 218 | 198 | |||||||||||||||||
Other | 3 | % | 14 | % | 33 | 29 | 34 | 30 | 32 | |||||||||||||||||
Total net revenues | 9 | % | — | 1,308 | 1,307 | 1,345 | 1,291 | 1,205 | ||||||||||||||||||
Expenses Excluding Interest(1) | ||||||||||||||||||||||||||
Compensation and benefits | (2 | %) | — | 438 | 437 | 455 | 447 | 449 | ||||||||||||||||||
Professional services | 4 | % | — | 84 | 84 | 88 | 81 | 81 | ||||||||||||||||||
Occupancy and equipment | 3 | % | (3 | %) | 72 | 74 | 74 | 70 | 70 | |||||||||||||||||
Advertising and market development | 12 | % | (24 | %) | 58 | 76 | 68 | 44 | 52 | |||||||||||||||||
Communications | 2 | % | — | 52 | 52 | 50 | 50 | 51 | ||||||||||||||||||
Depreciation and amortization | (5 | %) | (3 | %) | 37 | 38 | 39 | 39 | 39 | |||||||||||||||||
Other(2) | 36 | % | 39 | % | 53 | 38 | 45 | 48 | 39 | |||||||||||||||||
Total expenses excluding interest | 2 | % | (1 | %) | 794 | 799 | 819 | 779 | 781 | |||||||||||||||||
Income from continuing operations before taxes on income | 21 | % | 1 | % | 514 | 508 | 526 | 512 | 424 | |||||||||||||||||
Taxes on income(1) | 20 | % | (1 | %) | (201 | ) | (203 | ) | (221 | ) | (189 | ) | (168 | ) | ||||||||||||
Income from continuing operations | 22 | % | 3 | % | 313 | 305 | 305 | 323 | 256 | |||||||||||||||||
(Loss) income from discontinued operations, net of tax(3) | (150 | %) | N/M | (18 | ) | — | 3 | 1,211 | 36 | |||||||||||||||||
Net Income | 1 | % | (3 | %) | $ | 295 | $ | 305 | $ | 308 | $ | 1,534 | $ | 292 | ||||||||||||
Diluted earnings per share from continuing operations | 35 | % | 4 | % | $ | .27 | $ | .26 | $ | .26 | $ | .27 | $ | .20 | ||||||||||||
Basic earnings per share | 8 | % | (4 | %) | $ | .26 | $ | .27 | $ | .27 | $ | 1.29 | $ | .24 | ||||||||||||
Diluted earnings per share | 13 | % | — | $ | .26 | $ | .26 | $ | .26 | $ | 1.28 | $ | .23 | |||||||||||||
Dividends declared per common share | — | — | $ | .05 | $ | .05 | $ | .05 | $ | 1.05 | $ | .05 | ||||||||||||||
Weighted-average common shares outstanding – diluted | (8 | %) | — | 1,154 | 1,159 | 1,167 | 1,201 | 1,257 | ||||||||||||||||||
Performance Measures | ||||||||||||||||||||||||||
Pre-tax profit margin from continuing operations(1) | 39.3 | % | 38.9 | % | 39.1 | % | 39.7 | % | 35.2 | % | ||||||||||||||||
Annualized return on stockholders’ equity | 32 | % | 33 | % | 35 | % | 145 | % | 23 | % | ||||||||||||||||
Financial Condition (at quarter end, in billions) | ||||||||||||||||||||||||||
Cash and investments segregated(1) | 3 | % | (15 | %) | $ | 9.4 | $ | 11.1 | $ | 8.8 | $ | 9.4 | $ | 9.1 | ||||||||||||
Receivables from brokerage clients | 14 | % | 12 | % | $ | 12.9 | $ | 11.5 | $ | 12.3 | $ | 11.2 | $ | 11.3 | ||||||||||||
Loans to banking clients(1) | 81 | % | 23 | % | $ | 4.9 | $ | 4.0 | $ | 3.4 | $ | 3.1 | $ | 2.7 | ||||||||||||
Total assets | (1 | %) | 9 | % | $ | 48.4 | $ | 44.6 | $ | 42.3 | $ | 39.3 | $ | 49.0 | ||||||||||||
Deposits from banking clients(1) | 70 | % | 28 | % | $ | 19.9 | $ | 15.6 | $ | 13.8 | $ | 12.5 | $ | 11.7 | ||||||||||||
Payables to brokerage clients | 4 | % | (4 | %) | $ | 19.5 | $ | 20.4 | $ | 20.3 | $ | 18.9 | $ | 18.8 | ||||||||||||
Long-term debt(1) | 125 | % | — | $ | .9 | $ | .9 | $ | .9 | $ | .6 | $ | .4 | |||||||||||||
Stockholders’ equity | (24 | %) | 8 | % | $ | 3.9 | $ | 3.6 | $ | 3.7 | $ | 3.4 | $ | 5.1 | ||||||||||||
Other | ||||||||||||||||||||||||||
Full-time equivalent employees (at quarter end, in thousands) (1) | 4 | % | — | 13.4 | 13.4 | 13.3 | 12.9 | 12.9 | ||||||||||||||||||
Annualized net revenues per average full-time equivalent employee (in thousands)(1) | 5 | % | — | $ | 390 | $ | 391 | $ | 409 | $ | 400 | $ | 371 | |||||||||||||
Capital expenditures—cash purchases of equipment, office facilities, and property, net (in millions)(1) | (26 | %) | (33 | %) | $ | 32 | $ | 48 | $ | 52 | $ | 34 | $ | 43 | ||||||||||||
Clients’ Daily Average Trades (in thousands) | ||||||||||||||||||||||||||
Revenue trades(4) | 15 | % | (7 | %) | 254.7 | 274.6 | 275.5 | 253.5 | 221.4 | |||||||||||||||||
Schwab Investor Services(5) | 18 | % | (6 | %) | 22.0 | 23.3 | 21.5 | 20.5 | 18.6 | |||||||||||||||||
Schwab Institutional® (5) | 29 | % | (23 | %) | 21.5 | 27.9 | 22.3 | 19.0 | 16.7 | |||||||||||||||||
Schwab Corporate and Retirement Services(5) | — | (14 | %) | 1.2 | 1.4 | 1.3 | 1.3 | 1.2 | ||||||||||||||||||
Total | 16 | % | (8 | %) | 299.4 | 327.2 | 320.6 | 294.3 | 257.9 | |||||||||||||||||
Average Revenue Per Revenue Trade(4) | 1 | % | (1 | %) | $ | 14.38 | $ | 14.47 | $ | 13.87 | $ | 13.56 | $ | 14.27 | ||||||||||||
(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) | The second quarter of 2008 includes $16 million for individual client complaints and arbitration claims relating to Schwab YieldPlus Fund investments. |
(3) | The second quarter of 2008 includes an $18 million adjustment to finalize the income tax gain related to the sale of U.S. Trust Corporation. |
(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.
**********
Growth in Client Assets and Accounts
(Unaudited)
Q2-08 % change | 2008 | 2007 | ||||||||||||||||||||||||
(In billions, at quarter end, except as noted) | vs. Q2-07 | vs. Q1-08 | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | |||||||||||||||||||
Assets in client accounts | ||||||||||||||||||||||||||
Schwab One®, other cash equivalents and deposits from banking clients | 26 | % | 10 | % | $ | 40.1 | $ | 36.5 | $ | 35.9 | $ | 33.5 | $ | 31.7 | ||||||||||||
Proprietary funds (Schwab Funds® and Laudus Funds®): | ||||||||||||||||||||||||||
Money market funds | 28 | % | (7 | %) | 189.2 | 203.3 | 183.1 | 160.3 | 147.4 | |||||||||||||||||
Equity and bond funds | (30 | %) | (4 | %) | 47.0 | 49.0 | 58.7 | 64.3 | 67.1 | |||||||||||||||||
Total proprietary funds | 10 | % | (6 | %) | 236.2 | 252.3 | 241.8 | 224.6 | 214.5 | |||||||||||||||||
Mutual Fund Marketplace®(1): | ||||||||||||||||||||||||||
Mutual Fund OneSource® | (6 | %) | 1 | % | 170.2 | 168.2 | 180.9 | 190.8 | 180.5 | |||||||||||||||||
Mutual fund clearing services | 8 | % | 2 | % | 79.4 | 77.8 | 81.8 | 82.0 | 73.4 | |||||||||||||||||
Other third-party mutual funds | 4 | % | 3 | % | 230.2 | 224.2 | 225.7 | 224.5 | 221.4 | |||||||||||||||||
Total Mutual Fund Marketplace | 1 | % | 2 | % | 479.8 | 470.2 | 488.4 | 497.3 | 475.3 | |||||||||||||||||
Total mutual fund assets | 4 | % | (1 | %) | 716.0 | 722.5 | 730.2 | 721.9 | 689.8 | |||||||||||||||||
Equity and other securities(1) | (5 | %) | 1 | % | 503.7 | 498.4 | 545.2 | 547.8 | 530.4 | |||||||||||||||||
Fixed income securities | 5 | % | 2 | % | 149.4 | 146.4 | 145.8 | 148.3 | 142.6 | |||||||||||||||||
Margin loans outstanding | 13 | % | 14 | % | (12.3 | ) | (10.8 | ) | (11.6 | ) | (10.8 | ) | (10.9 | ) | ||||||||||||
Total client assets | 1 | % | — | $ | 1,396.9 | $ | 1,393.0 | $ | 1,445.5 | $ | 1,440.7 | $ | 1,383.6 | |||||||||||||
Client assets by business | ||||||||||||||||||||||||||
Schwab Investor Services(2) | (3 | %) | (1 | %) | $ | 590.7 | $ | 595.5 | $ | 625.3 | $ | 624.5 | $ | 607.3 | ||||||||||||
Schwab Institutional | 3 | % | 1 | % | 575.3 | 569.7 | 583.5 | 581.0 | 556.4 | |||||||||||||||||
Schwab Corporate and Retirement Services(2) | 5 | % | 1 | % | 230.9 | 227.8 | 236.7 | 235.2 | 219.9 | |||||||||||||||||
Total client assets by business | 1 | % | — | $ | 1,396.9 | $ | 1,393.0 | $ | 1,445.5 | $ | 1,440.7 | $ | 1,383.6 | |||||||||||||
Net growth in assets in client accounts(for the quarter ended) | ||||||||||||||||||||||||||
Net new assets | ||||||||||||||||||||||||||
Schwab Investor Services(2) | 13 | % | (56 | %) | $ | 6.0 | $ | 13.7 | $ | 14.3 | $ | 9.4 | $ | 5.3 | ||||||||||||
Schwab Institutional | 20 | % | (27 | %) | 14.5 | 19.9 | 17.9 | 17.1 | 12.1 | |||||||||||||||||
Schwab Corporate and Retirement | (53 | %) | (29 | %) | 5.5 | 7.7 | 7.3 | 10.8 | 11.6 | |||||||||||||||||
Total net new client assets | (10 | %) | (37 | %) | 26.0 | 41.3 | 39.5 | 37.3 | 29.0 | |||||||||||||||||
Net market (losses) gains(4) | N/M | (76 | %) | (22.1 | ) | (93.8 | ) | (34.7 | ) | 19.8 | 48.9 | |||||||||||||||
Net growth (decline) | (95 | %) | N/M | $ | 3.9 | $ | (52.5 | ) | $ | 4.8 | $ | 57.1 | $ | 77.9 | ||||||||||||
New brokerage accounts (in thousands, for the quarter ended) | 10 | % | (8 | %) | 226 | 246 | 227 | 183 | 206 | |||||||||||||||||
Clients (in thousands) | ||||||||||||||||||||||||||
Active Brokerage Accounts | 5 | % | 1 | % | 7,256 | 7,162 | 7,049 | 6,940 | 6,880 | |||||||||||||||||
Banking Accounts | 101 | % | 12 | % | 355 | 318 | 262 | 212 | 177 | |||||||||||||||||
Corporate Retirement Plan Participants | 13 | % | 2 | % | 1,291 | 1,271 | 1,205 | 1,169 | 1,138 | |||||||||||||||||
(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 $3.3 billion in the third quarter of 2007 related to a mutual fund clearing services client. |
(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. |
N/M Not meaningful
The Charles Schwab Corporation Monthly Market Activity Report For June 2008
2007 | 2008 | % change | |||||||||||||||||||||||||||||||||||||||||||
Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Mo. | Yr. | |||||||||||||||||||||||||||||||
Change in Client Assets | |||||||||||||||||||||||||||||||||||||||||||||
Net New Assets(1, 2) | 8.3 | 13.5 | 14.7 | 9.1 | 11.7 | 12.1 | 15.7 | 11.1 | 12.5 | 17.7 | 3.8 | 12.2 | 10.0 | (18 | %) | 20 | % | ||||||||||||||||||||||||||||
Net Market (Losses) Gains(2) | (13.2 | ) | (26.4 | ) | 4.4 | 41.8 | 31.4 | (50.4 | ) | (15.7 | ) | (60.6 | ) | (17.8 | ) | (15.4 | ) | 42.1 | 17.8 | (82.0 | ) | ||||||||||||||||||||||||
Total Client Assets | 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 | 1,438.9 | 1,468.9 | 1,396.9 | (5 | %) | 1 | % | ||||||||||||||||||||||||||||
New Brokerage Accounts | 58 | 62 | 64 | 57 | 75 | 74 | 78 | 94 | 69 | 83 | 94 | 67 | 65 | (3 | %) | 12 | % | ||||||||||||||||||||||||||||
Clients | |||||||||||||||||||||||||||||||||||||||||||||
Active Brokerage Accounts | 6,880 | 6,898 | 6,922 | 6,940 | 6,974 | 7,013 | 7,049 | 7,093 | 7,119 | 7,162 | 7,206 | 7,232 | 7,256 | — | 5 | % | |||||||||||||||||||||||||||||
Banking Accounts | 177 | 187 | 200 | 212 | 229 | 247 | 262 | 286 | 302 | 318 | 332 | 344 | 355 | 3 | % | 101 | % | ||||||||||||||||||||||||||||
Corporate Retirement Plan Participants | 1,138 | 1,169 | 1,167 | 1,169 | 1,182 | 1,185 | 1,205 | 1,256 | 1,263 | 1,271 | 1,284 | 1,286 | 1,291 | — | 13 | % | |||||||||||||||||||||||||||||
Market Indices | |||||||||||||||||||||||||||||||||||||||||||||
Dow Jones Industrial Average | 13,409 | 13,212 | 13,358 | 13,896 | 13,930 | 13,372 | 13,265 | 12,650 | 12,266 | 12,263 | 12,820 | 12,638 | 11,350 | (10 | %) | (15 | %) | ||||||||||||||||||||||||||||
Nasdaq Composite | 2,603 | 2,546 | 2,596 | 2,702 | 2,859 | 2,661 | 2,652 | 2,390 | 2,271 | 2,279 | 2,413 | 2,523 | 2,293 | (9 | %) | (12 | %) | ||||||||||||||||||||||||||||
Standard & Poor’s 500 | 1,503 | 1,455 | 1,474 | 1,527 | 1,549 | 1,481 | 1,468 | 1,379 | 1,331 | 1,323 | 1,386 | 1,400 | 1,280 | (9 | %) | (15 | %) | ||||||||||||||||||||||||||||
Clients’ Daily Average Trades | |||||||||||||||||||||||||||||||||||||||||||||
Revenue Trades(3) | 218.1 | 259.5 | 266.2 | 231.5 | 277.3 | 297.2 | 250.7 | 311.2 | 242.7 | 268.1 | 250.6 | 258.4 | 255.3 | (1 | %) | 17 | % | ||||||||||||||||||||||||||||
Schwab Investor Services(4) | 16.7 | 20.3 | 20.5 | 21.3 | 20.1 | 21.1 | 23.4 | 24.8 | 21.9 | 23.1 | 22.2 | 24.1 | 19.7 | (18 | %) | 18 | % | ||||||||||||||||||||||||||||
Schwab Institutional® (4) | 15.8 | 18.9 | 20.2 | 17.4 | 20.1 | 24.9 | 22.2 | 32.0 | 23.5 | 28.0 | 21.5 | 20.9 | 22.0 | 5 | % | 39 | % | ||||||||||||||||||||||||||||
Schwab Corporate & Retirement Services(4) | 1.1 | 1.4 | 1.2 | 1.2 | 1.2 | 1.2 | 1.4 | 1.5 | 1.3 | 1.3 | 1.2 | 1.3 | 1.2 | (8 | %) | 9 | % | ||||||||||||||||||||||||||||
Total | 251.7 | 300.1 | 308.1 | 271.4 | 318.7 | 344.4 | 297.7 | 369.5 | 289.4 | 320.5 | 295.5 | 304.7 | 298.2 | (2 | %) | 18 | % | ||||||||||||||||||||||||||||
Daily Average Market Share Volume | |||||||||||||||||||||||||||||||||||||||||||||
NYSE | 1,635 | 1,662 | 1,883 | 1,378 | 1,324 | 1,630 | 1,320 | 1,927 | 1,514 | 1,727 | 1,310 | 1,218 | 1,400 | 15 | % | (14 | %) | ||||||||||||||||||||||||||||
Nasdaq | 2,192 | 2,226 | 2,334 | 1,921 | 2,166 | 2,367 | 1,900 | 2,696 | 2,344 | 2,294 | 1,982 | 2,069 | 2,261 | 9 | % | 3 | % | ||||||||||||||||||||||||||||
Total | 3,827 | 3,888 | 4,217 | 3,299 | 3,490 | 3,997 | 3,220 | 4,623 | 3,858 | 4,021 | 3,292 | 3,287 | 3,661 | 11 | % | (4 | %) | ||||||||||||||||||||||||||||
Mutual Fund Net Buys (Sells)(5) | |||||||||||||||||||||||||||||||||||||||||||||
Large Capitalization Stock | 376.5 | 496.2 | 26.8 | 337.0 | 240.6 | (327.5 | ) | (130.3 | ) | (721.5 | ) | 819.1 | (69.3 | ) | 689.1 | 738.5 | 284.5 | ||||||||||||||||||||||||||||
Small / Mid Capitalization Stock | 247.5 | 155.3 | (362.7 | ) | (2.9 | ) | (73.8 | ) | (641.9 | ) | (1,009.5 | ) | (1,168.7 | ) | (17.2 | ) | (410.0 | ) | 10.9 | 215.8 | 277.2 | ||||||||||||||||||||||||
International | 719.5 | 994.6 | 235.7 | 663.1 | 842.2 | (80.6 | ) | 262.5 | (800.2 | ) | 283.1 | (229.8 | ) | 262.1 | 800.7 | (184.6 | ) | ||||||||||||||||||||||||||||
Specialized | 62.9 | (5.8 | ) | (289.1 | ) | 78.6 | 154.3 | (191.3 | ) | (132.1 | ) | 53.0 | 206.6 | (230.2 | ) | (20.7 | ) | 164.4 | 133.5 | ||||||||||||||||||||||||||
Hybrid | 302.9 | 190.1 | (47.4 | ) | 202.1 | 179.6 | 117.9 | 199.2 | 202.0 | 601.8 | 457.2 | 457.1 | 405.7 | 273.0 | |||||||||||||||||||||||||||||||
Taxable Bond | 1,148.7 | 388.6 | (1,908.9 | ) | 98.1 | 953.3 | (379.4 | ) | (585.3 | ) | 1,407.0 | 1,047.6 | (845.3 | ) | 582.0 | 1,113.1 | 344.2 | ||||||||||||||||||||||||||||
Tax-Free Bond | 204.7 | 169.4 | (267.4 | ) | 111.1 | 96.7 | (152.1 | ) | (519.1 | ) | 204.1 | (31.6 | ) | 10.9 | 158.6 | 459.4 | 358.4 | ||||||||||||||||||||||||||||
Money Market Funds | 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 | (7,347.2 | ) | (3,956.8 | ) | (2,378.1 | ) |
(1) | August 2007 includes an inflow of $3.3 billion, related to a mutual fund clearing services client. |
(2) | 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. |
(3) | Includes all client trades that generate either commission revenue or revenue from principal markups (i.e., fixed income); also known as DART. |
(4) | Includes eligible trades executed by clients who participate in one or more of the Company’s asset-based pricing relationships. |
(5) | 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. |