EXHIBIT 99.1
News Release
Contacts:
| | | | |
| MEDIA: | | INVESTORS/ANALYSTS: | | |
| | |
| Alison Wertheim | | Rich Fowler | | |
| Charles Schwab | | Charles Schwab | | |
| Phone: 415-667-0475 | | Phone: 415-667-1841 | | |
SCHWAB REPORTS SECOND QUARTER NET INCOME UP 16% YEAR-OVER-YEAR
Second quarter and first half revenues rise 10% and 16%, respectively
Client engagement remains solid in face of choppy environment; company’s investment for growth continues
SAN FRANCISCO, July 18, 2011 – The Charles Schwab Corporation announced today that its net income was $238 million for the second quarter of 2011, up from $205 million for the second quarter of 2010. For the six months ended June 30, 2011, the company’s net income was $481 million, which was 43% higher than the $337 million earned in the year-earlier period excluding certain charges relating to the Schwab YieldPlus Fund® and the company’s affinity credit card program.
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| | | Three Months Ended
—June 30,—
| | | %
Change
| | | Six Months Ended
—June 30,—
| | | %
Change
| |
Financial Highlights
| | 2011
| | | 2010
| | | | 2011
| | | 2010
| | |
Net revenues (in millions) | | $ | 1,190 | | | $ | 1,080 | | | | 10 | % | | $ | 2,397 | | | $ | 2,058 | | | | 16 | % |
Net income (in millions) | | $ | 238 | | | $ | 205 | | | | 16 | % | | $ | 481 | | | $ | 211 | | | | 128 | % |
Diluted earnings per share | | $ | .20 | | | $ | .17 | | | | 18 | % | | $ | .40 | | | $ | .18 | | | | 122 | % |
Pre-tax profit margin | | | 32.4 | % | | | 31.3 | % | | | | | | | 32.5 | % | | | 17.1 | % | | | | |
Return on stockholders’ equity (annualized) | | | 14 | % | | | 14 | % | | | | | | | 15 | % | | | 8 | % | | | | |
CEO Walt Bettinger commented, “Our valued clients are showing a resiliency in this environment that bodes well for the future. Although the economic recovery is progressing slower than hoped, clients remain solidly engaged with their investments, as cash holdings at Schwab have declined to pre-crisis levels. While trading activity is relatively soft, our diverse suite of investment products and services is propelling our ongoing growth, as clients increasingly opt to enroll in our advisory solutions. Client assets enrolled in Schwab retail advisory offerings increased to $113 billion at month-end June, up 20% year-over-year. Adding in assets under the guidance of an independent fee-based advisor brings total advised assets at quarter-end to $811 billion, up 17%. Overall, we ended June serving 8.1 million active brokerage accounts, 745,000 banking accounts and 1.44 million retirement plan participants. Despite a challenging environment, net new assets totaled $15.4 billion for the second quarter, up 10% from the second quarter of 2010 after adjusting for a large clearing outflow last year, and total client assets reached $1.66 trillion at quarter-end, up 22% from a year ago.”
“We are on the right course,” Mr. Bettinger added. “We continue to view this as exactly the right time to make long-term investments in our clients with new products and services that will serve them better and sustain our growth. Consistent with our ongoing efforts to help clients manage their finances when and how they choose, we now offer a broad array of mobile investing, banking and deposit capabilities as part of the integrated brokerage and banking services available to iPhone® and Android™ smartphone users. In addition, over 300,000 clients are already using Schwab’s online portfolio performance reporting capabilities, which were announced earlier this year. For independent advisors, we have enhanced our Business Consulting Services, and we are developing an integrated technology platform to be unveiled at
our upcoming IMPACT® meeting this fall. Other initiatives underway include our recently announced global investing capabilities, a new online portal for prospective clients, new retirement income planning tools and content, an ETF education center, enhanced fixed income services, and, of course, our acquisition of optionsXpress®, which remains on track for a third quarter close. Importantly, our ability to make the trade-off decisions necessary to balance significant investment in our clients with current profitability helped us leverage 10% second quarter revenue growth into 16% earnings growth.”
CFO Joe Martinetto said, “We continue to operate with a high degree of financial stability and flexibility. With nearly $7 billion in stockholders’ equity and a healthy balance sheet that reflects our rigorous approach to credit risk and capital management, we can stay focused on serving the needs of our growing client base regardless of the operating environment. At the same time, our diversified revenue streams and expense discipline make it possible for the company to deliver solid revenue and earnings performance despite economic and market choppiness. The second quarter was marked by lower interest rates, volatile equity markets, and the beginning of a seasonal summer slowdown in client trading, yet our ongoing success with clients allowed us to stay on track with our financial expectations. Net interest revenue rose between the first and second quarters and asset management and administration fees were unchanged despite higher levels of money fund fee waivers, enabling the company to keep overall revenues nearly flat sequentially even as trading revenue declined by 15%. By sticking to our spending plan, we were able to deliver a pre-tax profit margin in excess of 32% for the second consecutive quarter. We’ve passed the mid-year mark about where we’d expect to be given the environment, and while we remain well positioned for significantly improved performance when rates increase, we are continuing our investment in clients to drive the future growth of the business.”
Business highlights for the second quarter (data as of quarter-end unless otherwise noted):
Investor Services
| | • | | Net new accounts for the quarter totaled approximately 36,000, down 10% year-over-year. Total accounts reached 5.7 million as of June 30, 2011, up 4% year-over-year. |
| | • | | Extended the company’s integrated mobile brokerage and banking capabilities to Android™ powered smartphone users and enabled both iPhone® mobile digital device and Android users to deposit checks remotely by taking a picture of a check with their smartphone camera. |
Institutional Services
Advisor Services
| | • | | Released a new Schwab Market Knowledge Tools® white paper that provides a preview of cost basis reporting changes for 2012 and strategies for advisors to manage and communicate with clients effectively. |
| | • | | Launched a new consultative program, “Managing Client Profitability,” designed to help advisors manage profitable and scalable businesses through effective client segmentation. The new program is part of Schwab’s Business Consulting Services, a comprehensive practice management offering for advisors. Through an intensive eight-week program, advisors are guided through developing, evaluating and preparing to implement customized segmentation strategies for their firms. |
Other Institutional Services
| | • | | Launched the Schwab Workplace Retirement iPhone Application for 401(k) plan participants, which provides access to 401(k) account information, including balances, year-to-date personal performance, and contribution rate. |
Products and Infrastructure
| | • | | For Charles Schwab Bank: |
| | • | | Balance sheet assets = $56.9 billion, up 14% year-over-year. |
| | • | | Outstanding mortgage and home equity loans = $8.8 billion, up 19% year-over-year. |
| | • | | First mortgage originations during the quarter = $647 million. |
| | • | | Delinquency, nonaccrual, and loss reserve ratios for Schwab Bank’s loan portfolio = 0.76%, 0.48% and 0.53%, respectively, at month-end June. |
| | • | | Schwab Bank High Yield Investor Checking® accounts = 563,000, with $9.9 billion in balances. |
| | • | | Client assets managed by Windhaven® totaled $6.6 billion; up 22% from the first quarter of 2011. |
| | • | | Total assets under management in Schwab ETFs™ = $4.4 billion. Total assets in Schwab Managed Portfolios-ETFs = $2.7 billion. |
| | • | | Added a fixed income annuity product from MetLife Investors USA Insurance Company to Schwab’s Single Premium Immediate Annuity offer, a fixed income annuity platform that provides choice and flexibility for people seeking ongoing sources of guaranteed income in retirement. |
iPhone is a registered trademark of Apple Inc.
Android is a trademark of Google Inc.
Supporting schedules are either attached or located at:http://www.aboutschwab.com/media/xls/q2_2011_schedule.xls
Forward Looking Statements
This press release contains forward looking statements relating to the company’s development and launch of new products, services and capabilities, the acquisition of optionsXpress and financial performance. Achievement of these expectations is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations. Important factors that may cause such differences include, but are not limited to, the company’s ability to develop and launch new products, services and capabilities in a timely and successful manner; the timing and ability of the company and optionsXpress to satisfy the closing conditions in the merger agreement; general market conditions, including the level of interest rates, equity valuations and trading activity; the company’s ability to attract and retain clients and grow client assets/relationships; the impact of changes in market conditions on money market fund fee waivers, revenue, expenses and pre-tax margins; competitive pressures on rates and fees; the level of client assets, including cash balances; adverse developments in litigation or regulatory matters and the extent of any charges associated with legal matters; the unknown costs of complying with new regulations emerging from recent financial reform legislation; and other factors set forth in the company’s Form 10-Q for the period ending March 31, 2011.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with more than 300 offices and 8.1 million client brokerage accounts, 1.44 million corporate retirement plan participants, 745,000 banking accounts, and $1.66 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 Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and mortgage services and products. More information is available atwww.schwab.com andwww.aboutschwab.com.
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THE CHARLES SCHWAB CORPORATION
Consolidated Statements of Income
(In millions, except per share amounts)
(Unaudited)
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| | | Three Months Ended
June 30,
| | | Six Months Ended
June 30,
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| | | 2011
| | | 2010
| | | 2011
| | | 2010
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Net Revenues | | | | | | | | | | | | | | | | |
Asset management and administration fees | | $ | 502 | | | $ | 437 | | | $ | 1,004 | | | $ | 857 | |
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Interest revenue | | | 496 | | | | 428 | | | | 977 | | | | 819 | |
Interest expense | | | (45 | ) | | | (45 | ) | | | (90 | ) | | | (96 | ) |
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Net interest revenue | | | 451 | | | | 383 | | | | 887 | | | | 723 | |
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Trading revenue | | | 205 | | | | 233 | | | | 446 | | | | 442 | |
Other | | | 35 | | | | 36 | | | | 74 | | | | 67 | |
Provision for loan losses | | | (1 | ) | | | (1 | ) | | | (5 | ) | | | (15 | ) |
Net impairment losses on securities(1) | | | (2 | ) | | | (8 | ) | | | (9 | ) | | | (16 | ) |
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Total net revenues | | | 1,190 | | | | 1,080 | | | | 2,397 | | | | 2,058 | |
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Expenses Excluding Interest | | | | | | | | | | | | | | | | |
Compensation and benefits | | | 430 | | | | 393 | | | | 867 | | | | 795 | |
Professional services | | | 92 | | | | 84 | | | | 184 | | | | 164 | |
Occupancy and equipment | | | 73 | | | | 68 | | | | 144 | | | | 136 | |
Advertising and market development | | | 51 | | | | 43 | | | | 111 | | | | 105 | |
Communications | | | 54 | | | | 53 | | | | 110 | | | | 105 | |
Depreciation and amortization | | | 33 | | | | 36 | | | | 68 | | | | 73 | |
Class action litigation and regulatory reserve | | | 7 | | | | — | | | | 7 | | | | 196 | |
Other | | | 64 | | | | 65 | | | | 126 | | | | 133 | |
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Total expenses excluding interest | | | 804 | | | | 742 | | | | 1,617 | | | | 1,707 | |
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Income before taxes on income | | | 386 | | | | 338 | | | | 780 | | | | 351 | |
Taxes on income | | | (148 | ) | | | (133 | ) | | | (299 | ) | | | (140 | ) |
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Net Income | | $ | 238 | | | $ | 205 | | | $ | 481 | | | $ | 211 | |
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Weighted-Average Common Shares Outstanding — Diluted | | | 1,210 | | | | 1,195 | | | | 1,208 | | | | 1,191 | |
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Earnings Per Share — Basic | | $ | .20 | | | $ | .17 | | | $ | .40 | �� | | $ | .18 | |
Earnings Per Share — Diluted | | $ | .20 | | | $ | .17 | | | $ | .40 | | | $ | .18 | |
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| (1) | Net impairment losses on securities include total other-than-temporary impairment losses of $11 and $13, net of $9 and $5 recognized in other comprehensive income, for the three months ended June 30, 2011 and 2010, respectively. Net impairment losses on securities include total other-than-temporary impairment losses of $11 and $41, net of $2 and $25 recognized in other comprehensive income, for the six months ended June 30, 2011 and 2010, respectively. |
See Notes to Consolidated Statements of Income, Financial and Operating Highlights, and Net Interest Revenue Information.
THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)
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| | | Q2-11 % change
| | | 2011
| | | 2010
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(In millions, except per share amounts and as noted)
| | vs.
Q2-10
| | | vs.
Q1-11
| | | Second
Quarter
| | | First
Quarter
| | | Fourth
Quarter
| | | Third
Quarter
| | | Second
Quarter
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Net Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Asset management and administration fees | | | 15 | % | | | — | | | $ | 502 | | | $ | 502 | | | $ | 497 | | | $ | 468 | | | $ | 437 | |
Net interest revenue | | | 18 | % | | | 3 | % | | | 451 | | | | 436 | | | | 414 | | | | 387 | | | | 383 | |
Trading revenue | | | (12 | %) | | | (15 | %) | | | 205 | | | | 241 | | | | 206 | | | | 182 | | | | 233 | |
Other | | | (3 | %) | | | (10 | %) | | | 35 | | | | 39 | | | | 36 | | | | 32 | | | | 36 | |
Provision for loan losses | | | — | | | | (75 | %) | | | (1 | ) | | | (4 | ) | | | (9 | ) | | | (3 | ) | | | (1 | ) |
Net impairment losses on securities | | | (75 | %) | | | (71 | %) | | | (2 | ) | | | (7 | ) | | | (17 | ) | | | (3 | ) | | | (8 | ) |
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Total net revenues | | | 10 | % | | | (1 | %) | | | 1,190 | | | | 1,207 | | | | 1,127 | | | | 1,063 | | | | 1,080 | |
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Expenses Excluding Interest | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and benefits | | | 9 | % | | | (2 | %) | | | 430 | | | | 437 | | | | 397 | | | | 381 | | | | 393 | |
Professional services | | | 10 | % | | | — | | | | 92 | | | | 92 | | | | 92 | | | | 85 | | | | 84 | |
Occupancy and equipment | | | 7 | % | | | 3 | % | | | 73 | | | | 71 | | | | 70 | | | | 66 | | | | 68 | |
Advertising and market development | | | 19 | % | | | (15 | %) | | | 51 | | | | 60 | | | | 57 | | | | 34 | | | | 43 | |
Communications | | | 2 | % | | | (4 | %) | | | 54 | | | | 56 | | | | 53 | | | | 49 | | | | 53 | |
Depreciation and amortization | | | (8 | %) | | | (6 | %) | | | 33 | | | | 35 | | | | 38 | | | | 35 | | | | 36 | |
Class action litigation and regulatory reserve(1) | | | N/M | | | | N/M | | | | 7 | | | | — | | | | 124 | | | | — | | | | — | |
Money market mutual fund charges(2) | | | — | | | | — | | | | — | | | | — | | | | — | | | | 132 | | | | — | |
Other(3) | | | (2 | %) | | | 3 | % | | | 64 | | | | 62 | | | | 67 | | | | 82 | | | | 65 | |
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Total expenses excluding interest | | | 8 | % | | | (1 | %) | | | 804 | | | | 813 | | | | 898 | | | | 864 | | | | 742 | |
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Income before taxes on income | | | 14 | % | | | (2 | %) | | | 386 | | | | 394 | | | | 229 | | | | 199 | | | | 338 | |
Taxes on income | | | 11 | % | | | (2 | %) | | | (148 | ) | | | (151 | ) | | | (110 | ) | | | (75 | ) | | | (133 | ) |
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Net Income | | | 16 | % | | | (2 | %) | | $ | 238 | | | $ | 243 | | | $ | 119 | | | $ | 124 | | | $ | 205 | |
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Basic earnings per share | | | 18 | % | | | — | | | $ | .20 | | | $ | .20 | | | $ | .10 | | | $ | .10 | | | $ | .17 | |
Diluted earnings per share | | | 18 | % | | | — | | | $ | .20 | | | $ | .20 | | | $ | .10 | | | $ | .10 | | | $ | .17 | |
Dividends declared per common share | | | — | | | | — | | | $ | .06 | | | $ | .06 | | | $ | .06 | | | $ | .06 | | | $ | .06 | |
Weighted-average common shares outstanding – diluted | | | 1 | % | | | — | | | | 1,210 | | | | 1,207 | | | | 1,200 | | | | 1,194 | | | | 1,195 | |
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Performance Measures | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pre-tax profit margin | | | | | | | | | | | 32.4 | % | | | 32.6 | % | | | 20.3 | % | | | 18.7 | % | | | 31.3 | % |
Return on stockholders’ equity (annualized) | | | | | | | | | | | 14 | % | | | 15 | % | | | 8 | % | | | 8 | % | | | 14 | % |
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Financial Condition(at quarter end, in billions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and investments segregated | | | 26 | % | | | 3 | % | | $ | 23.8 | | | $ | 23.1 | | | $ | 22.7 | | | $ | 20.1 | | | $ | 18.9 | |
Receivables from brokerage clients | | | 17 | % | | | 3 | % | | $ | 11.6 | | | $ | 11.3 | | | $ | 11.2 | | | $ | 9.8 | | | $ | 9.9 | |
Loans to banking clients | | | 22 | % | | | 4 | % | | $ | 9.5 | | | $ | 9.1 | | | $ | 8.7 | | | $ | 8.2 | | | $ | 7.8 | |
Total assets | | | 19 | % | | | 3 | % | | $ | 97.6 | | | $ | 94.9 | | | $ | 92.6 | | | $ | 87.3 | | | $ | 82.3 | |
Deposits from banking clients | | | 14 | % | | | 2 | % | | $ | 52.3 | | | $ | 51.3 | | | $ | 50.6 | | | $ | 48.8 | | | $ | 45.9 | |
Payables to brokerage clients | | | 28 | % | | | 6 | % | | $ | 33.9 | | | $ | 32.1 | | | $ | 30.9 | | | $ | 27.7 | | | $ | 26.4 | |
Long-term debt(4) | | | 54 | % | | | — | | | $ | 2.0 | | | $ | 2.0 | | | $ | 2.0 | | | $ | 2.0 | | | $ | 1.3 | |
Stockholders’ equity | | | 14 | % | | | 3 | % | | $ | 6.7 | | | $ | 6.5 | | | $ | 6.2 | | | $ | 6.0 | | | $ | 5.9 | |
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Other | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Full-time equivalent employees (at quarter end, in thousands) | | | 6 | % | | | 1 | % | | | 13.2 | | | | 13.1 | | | | 12.8 | | | | 12.5 | | | | 12.5 | |
Annualized net revenues per average full-time equivalent employee (in thousands) | | | 5 | % | | | (3 | %) | | $ | 361 | | | $ | 371 | | | $ | 355 | | | $ | 340 | | | $ | 343 | |
Capital expenditures—cash purchases of equipment, office facilities, and property, net (in millions) | | | 76 | % | | | 19 | % | | $ | 44 | | | $ | 37 | | | $ | 51 | | | $ | 27 | | | $ | 25 | |
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Clients’ Daily Average Trades (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue trades(5) | | | (13 | %) | | | (17 | %) | | | 264.9 | | | | 319.9 | | | | 271.6 | | | | 233.2 | | | | 302.9 | |
Asset-based trades(6) | | | (5 | %) | | | (11 | %) | | | 43.6 | | | | 48.8 | | | | 39.3 | | | | 36.8 | | | | 46.1 | |
Other trades(7) | | | 1 | % | | | (15 | %) | | | 88.6 | | | | 103.8 | | | | 84.6 | | | | 82.6 | | | | 87.6 | |
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Total | | | (9 | %) | | | (16 | %) | | | 397.1 | | | | 472.5 | | | | 395.5 | | | | 352.6 | | | | 436.6 | |
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Average Revenue Per Revenue Trade(5) | | | 1 | % | | | 1 | % | | $ | 12.23 | | | $ | 12.12 | | | $ | 12.07 | | | $ | 12.32 | | | $ | 12.15 | |
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| (1) | Includes a regulatory reserve relating to the Schwab YieldPlus Fund®. |
| (2) | Includes a charge of $132 million relating to losses recognized by Schwab money market mutual funds in the third quarter of 2010. |
| (3) | Includes charges of $21 million in the third quarter of 2010 relating to the termination of the Company’s Invest First® and WorldPoints(a) Visa(b) credit card program. |
| (4) | Includes $700 million of Senior Notes that mature in 2020, which were issued in the third quarter of 2010. |
| (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) | Includes all commission free trades, including Schwab Mutual Fund OneSource® funds and ETFs, and other proprietary products. |
N/M Not meaningful.
See Notes to Consolidated Statements of Income, Financial and Operating Highlights, and Net Interest Revenue Information.
| (a) | WorldPoints is a registered trademark of FIA Card Services, N.A.;(b) Visa is a registered trademark of Visa International Service Association. |
THE CHARLES SCHWAB CORPORATION
Net Interest Revenue Information
(In millions)
(Unaudited)
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| | | Three Months Ended
June 30,
| | | Six Months Ended
June 30,
| |
| | | 2011
| | | 2010
| | | 2011
| | | 2010
| |
| | | Average
Balance
| | | Interest
Revenue/
Expense
| | | Average
Yield/
Rate
| | | Average
Balance
| | | Interest
Revenue/
Expense
| | | Average
Yield/
Rate
| | | Average
Balance
| | | Interest
Revenue/
Expense
| | | Average
Yield/
Rate
| | | Average
Balance
| | | Interest
Revenue/
Expense
| | | Average
Yield/
Rate
| |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 5,318 | | | $ | 3 | | | | 0.23 | % | | $ | 7,226 | | | $ | 5 | | | | 0.28 | % | | $ | 5,137 | | | $ | 6 | | | | 0.24 | % | | $ | 7,636 | | | $ | 10 | | | | 0.26 | % |
Cash and investments segregated | | | 23,478 | | | | 9 | | | | 0.15 | % | | | 19,007 | | | | 14 | | | | 0.30 | % | | | 23,335 | | | | 23 | | | | 0.20 | % | | | 18,924 | | | | 25 | | | | 0.27 | % |
Broker-related receivables(1) | | | 367 | | | | — | | | | — | | | | 341 | | | | — | | | | 0.10 | % | | | 370 | | | | — | | | | 0.06 | % | | | 302 | | | | — | | | | — | |
Receivables from brokerage clients | | | 10,880 | | | | 122 | | | | 4.50 | % | | | 8,917 | | | | 111 | | | | 4.99 | % | | | 10,609 | | | | 239 | | | | 4.54 | % | | | 8,501 | | | | 211 | | | | 5.01 | % |
Other securities owned(1) | | | — | | | | — | | | | — | | | | 46 | | | | — | | | | 0.51 | % | | | — | | | | — | | | | — | | | | 148 | | | | — | | | | 0.45 | % |
Securities available for sale(2) | | | 26,105 | | | | 110 | | | | 1.69 | % | | | 23,615 | | | | 124 | | | | 2.11 | % | | | 25,563 | | | | 216 | | | | 1.70 | % | | | 23,177 | | | | 252 | | | | 2.19 | % |
Securities held to maturity | | | 16,350 | | | | 145 | | | | 3.56 | % | | | 9,168 | | | | 86 | | | | 3.76 | % | | | 16,742 | | | | 285 | | | | 3.43 | % | | | 7,795 | | | | 145 | | | | 3.75 | % |
Loans to banking clients | | | 9,366 | | | | 77 | | | | 3.30 | % | | | 7,785 | | | | 68 | | | | 3.50 | % | | | 9,188 | | | | 152 | | | | 3.34 | % | | | 7,675 | | | | 135 | | | | 3.55 | % |
Loans held for sale(1) | | | 27 | | | | — | | | | 4.71 | % | | | 51 | | | | 1 | | | | 5.00 | % | | | 70 | | | | 1 | | | | 4.50 | % | | | 68 | | | | 2 | | | | 4.91 | % |
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Total interest-earning assets | | | 91,891 | | | | 466 | | | | 2.03 | % | | | 76,156 | | | | 409 | | | | 2.15 | % | | | 91,014 | | | | 922 | | | | 2.04 | % | | | 74,226 | | | | 780 | | | | 2.12 | % |
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Other interest revenue | | | | | | | 30 | | | | | | | | | | | | 19 | | | | | | | | | | | | 55 | | | | | | | | | | | | 39 | | | | | |
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Total interest-earning assets | | $ | 91,891 | | | $ | 496 | | | | 2.17 | % | | $ | 76,156 | | | $ | 428 | | | | 2.25 | % | | $ | 91,014 | | | $ | 977 | | | | 2.16 | % | | $ | 74,226 | | | $ | 819 | | | | 2.22 | % |
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Funding sources: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits from banking clients | | $ | 51,338 | | | $ | 16 | | | | 0.13 | % | | $ | 43,076 | | | $ | 25 | | | | 0.23 | % | | $ | 50,836 | | | $ | 33 | | | | 0.13 | % | | $ | 41,651 | | | $ | 56 | | | | 0.27 | % |
Payables to brokerage clients (1) | | | 28,086 | | | | — | | | | 0.01 | % | | | 22,168 | | | | 1 | | | | 0.02 | % | | | 27,573 | | | | 1 | | | | 0.01 | % | | | 21,708 | | | | 1 | | | | 0.01 | % |
Long-term debt | | | 2,004 | | | | 27 | | | | 5.40 | % | | | 1,309 | | | | 19 | | | | 5.82 | % | | | 2,005 | | | | 54 | | | | 5.43 | % | | | 1,375 | | | | 39 | | | | 5.72 | % |
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Total interest-bearing liabilities | | | 81,428 | | | | 43 | | | | 0.21 | % | | | 66,553 | | | | 45 | | | | 0.27 | % | | | 80,414 | | | | 88 | | | | 0.22 | % | | | 64,734 | | | | 96 | | | | 0.30 | % |
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Non-interest-bearing funding sources | | | 10,463 | | | | | | | | | | | | 9,603 | | | | | | | | | | | | 10,600 | | | | | | | | | | | | 9,492 | | | | | | | | | |
Other interest expense | | | | | | | 2 | | | | | | | | | | | | — | | | | | | | | | | | | 2 | | | | | | | | | | | | — | | | | | |
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Total funding sources | | $ | 91,891 | | | $ | 45 | | | | 0.20 | % | | $ | 76,156 | | | $ | 45 | | | | 0.23 | % | | $ | 91,014 | | | $ | 90 | | | | 0.20 | % | | $ | 74,226 | | | $ | 96 | | | | 0.26 | % |
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Net interest revenue | | | | | | $ | 451 | | | | 1.97 | % | | | | | | $ | 383 | | | | 2.02 | % | | | | | | $ | 887 | | | | 1.96 | % | | | | | | $ | 723 | | | | 1.96 | % |
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| (1) | Interest revenue or expense was less than $500,000 in the period or periods presented. |
| (2) | Amounts have been calculated based on amortized cost. |
See Notes to Consolidated Statements of Income, Financial and Operating Highlights, and Net Interest Revenue Information.
Notes to Consolidated Statements of Income, Financial and Operating Highlights,
and Net Interest Revenue Information
(Unaudited)
The Company
The consolidated statements of income, financial and operating highlights, and net interest revenue information 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. Certain prior year amounts have been reclassified to conform to the 2011 presentation. The consolidated statements of income, financial and operating highlights, and net interest revenue information 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, 2010.
**********
THE CHARLES SCHWAB CORPORATION
Asset Management and Administration Fees Information
(In millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
June 30,
| | | Six Months Ended
June 30,
| |
| | | 2011
| | | 2010
| | | 2011
| | | 2010
| |
| | | Average
Client
Assets
| | | Revenue
| | | Average
Fee
| | | Average
Client
Assets
| | | Revenue
| | | Average
Fee
| | | Average
Client
Assets
| | | Revenue
| | | Average
Fee
| | | Average
Client
Assets
| | | Revenue
| | | Average
Fee
| |
Schwab money market funds before fee waivers | | $ | 149,652 | | | $ | 208 | | | | 0.56 | % | | $ | 158,927 | | | | 215 | | | | 0.54 | % | | $ | 151,027 | | | $ | 419 | | | | 0.56 | % | | $ | 163,143 | | | $ | 439 | | | | 0.54 | % |
Fee waivers | | | | | | | (128 | ) | | | | | | | | | | | (113 | ) | | | | | | | | | | | (240 | ) | | | | | | | | | | | (238 | ) | | | | |
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Schwab money market funds | | | 149,652 | | | | 80 | | | | 0.21 | % | | | 158,927 | | | | 102 | | | | 0.26 | % | | | 151,027 | | | | 179 | | | | 0.24 | % | | | 163,143 | | | | 201 | | | | 0.25 | % |
Equity and bond
funds (1) | | | 42,577 | | | | 31 | | | | 0.29 | % | | | 34,997 | | | | 27 | | | | 0.31 | % | | | 41,892 | | | | 60 | | | | 0.29 | % | | | 34,574 | | | | 55 | | | | 0.32 | % |
Mutual Fund OneSource®(2) | | | 224,022 | | | | 182 | | | | 0.33 | % | | | 181,397 | | | | 150 | | | | 0.33 | % | | | 219,994 | | | | 356 | | | | 0.33 | % | | | 180,088 | | | | 297 | | | | 0.33 | % |
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Total mutual
funds (3) | | $ | 416,251 | | | | 293 | | | | 0.28 | % | | $ | 375,321 | | | | 279 | | | | 0.30 | % | | $ | 412,913 | | | | 595 | | | | 0.29 | % | | $ | 377,805 | | | | 553 | | | | 0.30 | % |
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Advice solutions (3, 4) | | $ | 111,911 | | | | 134 | | | | 0.48 | % | | $ | 98,820 | | | | 89 | | | | 0.36 | % | | $ | 110,002 | | | | 263 | | | | 0.48 | % | | $ | 97,463 | | | | 166 | | | | 0.34 | % |
Other(5) | | | | | | | 75 | | | | | | | | | | | | 69 | | | | | | | | | | | | 146 | | | | | | | | | | | | 138 | | | | | |
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Total asset management and administration fees | | | | | | $ | 502 | | | | | | | | | | | $ | 437 | | | | | | | | | | | $ | 1,004 | | | | | | | | | | | $ | 857 | | | | | |
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| (1) | Includes Schwab ETFs. |
| (2) | Includes clearing services. |
| (3) | Advice solutions include seperately managed accounts, customized personal advice for tailored portfolios, and specialized planning and full-time portfolio management offered through the Company’s Schwab Private Client, Schwab Managed Portfolio and Managed Account Select programs. Advice solutions also includes Schwab Advisor Network, Schwab Advisor Source, and Windhaven. Average client assets for advice solutions may also include the asset balances contained in the three categories of mutual funds listed above. |
| (4) | Revenue includes temporary fee rebates of $23 million and $52 million in the second quarter and first half of 2010, respectively, relating to client assets that participated in advisory and managed account programs under a rebate program that ended in 2010. |
| (5) | Includes various asset based fees, such as trust fees, 401k record keeping fees, and other mutual fund service fees. |
THE CHARLES SCHWAB CORPORATION
Reconciliation of Net Income Excluding Certain Charges to Reported Net Income
(In millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
June 30,
| | | | | | Six Months Ended
June 30,
| | | | |
| | | 2011
| | | 2010
| | | % Change
| | | 2011
| | | 2010
| | | % Change
| |
Net Income Excluding Certain Charges | | $ | 242 | | | $ | 205 | | | | 18 | % | | $ | 485 | | | $ | 337 | | | | 44 | % |
Class action litigation and regulatory reserve (1) | | | 7 | | | | — | | | | N/M | | | | 7 | | | | 196 | | | | N/M | |
Other expense(2) | | | — | | | | — | | | | — | | | | — | | | | 9 | | | | N/M | |
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Total charges | | | 7 | | | | — | | | | N/M | | | | 7 | | | | 205 | | | | N/M | |
Tax effect | | | (3 | ) | | | — | | | | N/M | | | | (3 | ) | | | (79 | ) | | | N/M | |
Total charges, net of tax | | | 4 | | | | — | | | | N/M | | | | 4 | | | | 126 | | | | N/M | |
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Reported Net Income | | $ | 238 | | | $ | 205 | | | | 16 | % | | $ | 481 | | | $ | 211 | | | | 128 | % |
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| (1) | Relates to the Schwab YieldPlus Fund®. |
| (2) | Includes a charge of $9 million in the first quarter of 2010 relating to the termination of the Company’s Invest First® and WorldPoints Visa credit card program. |
THE CHARLES SCHWAB CORPORATION
Growth in Client Assets and Accounts
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Q2-11 % Change
| | | 2011
| | | 2010
| |
(In billions, at quarter end, except as noted)
| | vs.
Q2-10
| | | vs.
Q1-11
| | | Second
Quarter
| | | First
Quarter
| | | Fourth
Quarter
| | | Third
Quarter
| | | Second
Quarter
| |
Assets in client accounts | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Schwab One®, other cash equivalents and deposits from banking clients | | | 19 | % | | | 3 | % | | $ | 86.5 | | | $ | 83.7 | | | $ | 81.1 | | | $ | 77.9 | | | $ | 72.4 | |
Proprietary funds (Schwab Funds® and Laudus Funds®): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market funds | | | (3 | %) | | | — | | | | 152.0 | | | | 152.2 | | | | 154.5 | | | | 152.4 | | | | 156.2 | |
Equity and bond funds | | | 27 | % | | | 1 | % | | | 49.6 | | | | 48.9 | | | | 46.0 | | | | 42.7 | | | | 39.2 | |
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Total proprietary funds | | | 3 | % | | | — | | | | 201.6 | | | | 201.1 | | | | 200.5 | �� | | | 195.1 | | | | 195.4 | |
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Mutual Fund Marketplace®(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mutual Fund OneSource® | | | 25 | % | | | 1 | % | | | 220.8 | | | | 219.7 | | | | 208.6 | | | | 193.9 | | | | 177.2 | |
Mutual fund clearing services | | | 49 | % | | | 2 | % | | | 43.7 | | | | 42.8 | | | | 42.1 | | | | 37.5 | | | | 29.3 | |
Other third-party mutual funds | | | 26 | % | | | 2 | % | | | 314.2 | | | | 307.7 | | | | 291.8 | | | | 275.0 | | | | 249.9 | |
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Total Mutual Fund Marketplace | | | 27 | % | | | 1 | % | | | 578.7 | | | | 570.2 | | | | 542.5 | | | | 506.4 | | | | 456.4 | |
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Total mutual fund assets | | | 20 | % | | | 1 | % | | | 780.3 | | | | 771.3 | | | | 743.0 | | | | 701.5 | | | | 651.8 | |
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Equity and other securities(1) | | | 32 | % | | | (1 | %) | | | 624.5 | | | | 631.0 | | | | 589.4 | | | | 526.4 | | | | 474.2 | |
Fixed income securities | | | 2 | % | | | 2 | % | | | 175.1 | | | | 171.5 | | | | 171.3 | | | | 174.7 | | | | 172.2 | |
Margin loans outstanding | | | 20 | % | | | 3 | % | | | (10.9 | ) | | | (10.6 | ) | | | (10.3 | ) | | | (9.2 | ) | | | (9.1 | ) |
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Total client assets | | | 22 | % | | | 1 | % | | $ | 1,655.5 | | | $ | 1,646.9 | | | $ | 1,574.5 | | | $ | 1,471.3 | | | $ | 1,361.5 | |
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Client assets by business | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investor Services | | | 25 | % | | | — | | | $ | 711.6 | | | $ | 714.8 | | | $ | 686.5 | | | $ | 644.6 | | | $ | 568.7 | |
Advisor Services | | | 17 | % | | | 1 | % | | | 697.8 | | | | 688.6 | | | | 654.9 | | | | 609.9 | | | | 596.7 | |
Other Institutional Services | | | 25 | % | | | 1 | % | | | 246.1 | | | | 243.5 | | | | 233.1 | | | | 216.8 | | | | 196.1 | |
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Total client assets by business | | | 22 | % | | | 1 | % | | $ | 1,655.5 | | | $ | 1,646.9 | | | $ | 1,574.5 | | | $ | 1,471.3 | | | $ | 1,361.5 | |
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Net growth in assets in client accounts (for the quarter ended) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net new assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investor Services (2) | | | 54 | % | | | (65 | %) | | $ | 2.0 | | | $ | 5.7 | | | $ | 5.0 | | | $ | 2.3 | | | $ | 1.3 | |
Advisor Services(2) | | | 4 | % | | | (25 | %) | | | 10.6 | | | | 14.2 | | | | 16.4 | | | | 8.0 | | | | 10.2 | |
Other Institutional Services(3) | | | N/M | | | | (10 | %) | | | 2.8 | | | | 3.1 | | | | 4.8 | | | | 4.3 | | | | (49.0 | ) |
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Total net new assets | | | N/M | | | | (33 | %) | | | 15.4 | | | | 23.0 | | | | 26.2 | | | | 14.6 | | | | (37.5 | ) |
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Net market (losses) gains | | | N/M | | | | (114 | %) | | | (6.8 | ) | | | 49.4 | | | | 77.0 | | | | 95.2 | | | | (92.1 | ) |
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Net growth (decline) | | | N/M | | | | (88 | %) | | $ | 8.6 | | | $ | 72.4 | | | $ | 103.2 | | | $ | 109.8 | | | $ | (129.6 | ) |
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New brokerage accounts (in thousands, for the quarter ended) | | | — | | | | (8 | %) | | | 205 | | | | 224 | | | | 225 | | | | 168 | | | | 206 | |
Clients (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Active Brokerage Accounts | | | 3 | % | | | 1 | % | | | 8,140 | | | | 8,072 | | | | 7,998 | | | | 7,919 | | | | 7,883 | |
Banking Accounts(4) | | | 18 | % | | | 4 | % | | | 745 | | | | 719 | | | | 690 | | | | 665 | | | | 634 | |
Corporate Retirement Plan Participants | | | (2 | %) | | | — | | | | 1,439 | | | | 1,444 | | | | 1,477 | | | | 1,473 | | | | 1,467 | |
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| (1) | Excludes all proprietary money market, equity, and bond funds. |
| (2) | Includes inflows of $520 million in Investor Services and $1.5 billion in Advisor Services from the acquisition of Windhaven in the fourth quarter of 2010. |
| (3) | Includes outflows of $2.1 billion from a mutual fund clearing services client in the first quarter of 2011. Includes inflows of $1.2 billion from a mutual fund clearing services client in the fourth quarter of 2010. Includes net outflows of $51.5 billion in the second quarter of 2010 related to the planned deconversion of a mutual fund clearing services client. |
| (4) | Effective September 2010, the number of banking accounts excludes credit cards. Prior period amounts have been recast to reflect this change. |
N/M Not meaningful.
The Charles Schwab Corporation Monthly Market Activity Report For June 2011
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| | | 2010
Jun
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| | | 2011
Jan
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| | | | | | % change
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Change in Client Assets
(in billions of dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net New Assets (1) | | | (16.5 | ) | | | 6.2 | | | | 4.2 | | | | 4.2 | | | | 6.8 | | | | 8.0 | | | | 11.4 | | | | 6.4 | | | | 7.8 | | | | 8.8 | | | | (0.5 | ) | | | 9.4 | | | | 6.5 | | | | (31 | %) | | | N/M | |
Net Market (Losses) Gains | | | (34.5 | ) | | | 53.7 | | | | (31.5 | ) | | | 73.0 | | | | 32.3 | | | | (5.5 | ) | | | 50.2 | | | | 13.5 | | | | 33.2 | | | | 2.7 | | | | 35.0 | | | | (18.1 | ) | | | (23.7 | ) | | | | | | | | |
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Total Client Assets
(at month end, in billions of dollars) | | | 1,361.5 | | | | 1,421.4 | | | | 1,394.1 | | | | 1,471.3 | | | | 1,510.4 | | | | 1,512.9 | | | | 1,574.5 | | | | 1,594.4 | | | | 1,635.4 | | | | 1,646.9 | | | | 1,681.4 | | | | 1,672.7 | | | | 1,655.5 | | | | (1 | %) | | | 22 | % |
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New Brokerage Accounts
(in thousands) | | | 58 | | | | 53 | | | | 59 | | | | 56 | | | | 60 | | | | 66 | | | | 99 | | | | 74 | | | | 68 | | | | 82 | | | | 83 | | | | 61 | | | | 61 | | | | — | | | | 5 | % |
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Clients
(at month end, in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Active Brokerage Accounts | | | 7,883 | | | | 7,891 | | | | 7,908 | | | | 7,919 | | | | 7,932 | | | | 7,951 | | | | 7,998 | | | | 8,022 | | | | 8,044 | | | | 8,072 | | | | 8,112 | | | | 8,127 | | | | 8,140 | | | | — | | | | 3 | % |
Banking Accounts(2) | | | 634 | | | | 643 | | | | 655 | | | | 665 | | | | 673 | | | | 681 | | | | 690 | | | | 701 | | | | 710 | | | | 719 | | | | 728 | | | | 736 | | | | 745 | | | | 1 | % | | | 18 | % |
Corporate Retirement Plan Participants | | | 1,467 | | | | 1,468 | | | | 1,467 | | | | 1,473 | | | | 1,468 | | | | 1,463 | | | | 1,477 | | | | 1,455 | | | | 1,438 | | | | 1,444 | | | | 1,436 | | | | 1,436 | | | | 1,439 | | | | — | | | | (2 | %) |
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Clients’ Daily Average Trades (3)
(in thousands) | | | 364.4 | | | | 365.3 | | | | 346.7 | | | | 346.0 | | | | 371.7 | | | | 413.9 | | | | 401.1 | | | | 511.8 | | | | 478.0 | | | | 433.7 | | | | 435.0 | | | | 395.9 | | | | 363.8 | | | | (8 | %) | | | — | |
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Market Indices
(at month end) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dow Jones Industrial Average | | | 9,774 | | | | 10,466 | | | | 10,015 | | | | 10,788 | | | | 11,119 | | | | 11,006 | | | | 11,578 | | | | 11,892 | | | | 12,226 | | | | 12,320 | | | | 12,811 | | | | 12,570 | | | | 12,414 | | | | (1 | %) | | | 27 | % |
Nasdaq Composite | | | 2,109 | | | | 2,255 | | | | 2,114 | | | | 2,369 | | | | 2,507 | | | | 2,498 | | | | 2,653 | | | | 2,700 | | | | 2,782 | | | | 2,781 | | | | 2,874 | | | | 2,835 | | | | 2,774 | | | | (2 | %) | | | 32 | % |
Standard & Poor’s 500 | | | 1,031 | | | | 1,102 | | | | 1,049 | | | | 1,141 | | | | 1,183 | | | | 1,181 | | | | 1,258 | | | | 1,286 | | | | 1,327 | | | | 1,326 | | | | 1,364 | | | | 1,345 | | | | 1,321 | | | | (2 | %) | | | 28 | % |
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Daily Average Market Share Volume
(in millions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NYSE | | | 1,378 | | | | 1,151 | | | | 1,003 | | | | 1,007 | | | | 1,041 | | | | 1,039 | | | | 926 | | | | 1,080 | | | | 1,025 | | | | 1,039 | | | | 894 | | | | 951 | | | | 1,021 | | | | 7 | % | | | (26 | %) |
Nasdaq | | | 2,251 | | | | 2,126 | | | | 1,943 | | | | 2,033 | | | | 2,035 | | | | 2,004 | | | | 1,686 | | | | 2,035 | | | | 2,085 | | | | 2,007 | | | | 1,907 | | | | 2,022 | | | | 2,001 | | | | (1 | %) | | | (11 | %) |
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Total | | | 3,629 | | | | 3,277 | | | | 2,946 | | | | 3,040 | | | | 3,076 | | | | 3,043 | | | | 2,612 | | | | 3,115 | | | | 3,110 | | | | 3,046 | | | | 2,801 | | | | 2,973 | | | | 3,022 | | | | 2 | % | | | (17 | %) |
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Mutual Fund Net Buys (Sells)(4)
(in millions of dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Large Capitalization Stock | | | (322.5 | ) | | | (254.5 | ) | | | (773.9 | ) | | | (467.6 | ) | | | (166.9 | ) | | | (244.7 | ) | | | 81.8 | | | | 538.4 | | | | 279.9 | | | | (98.7 | ) | | | (521.7 | ) | | | (652.9 | ) | | | (656.5 | ) | | | | | | | | |
Small / Mid Capitalization Stock | | | (122.0 | ) | | | (461.7 | ) | | | (502.6 | ) | | | (239.5 | ) | | | (92.4 | ) | | | 63.4 | | | | 388.6 | | | | 522.9 | | | | 317.0 | | | | (65.1 | ) | | | 56.8 | | | | (303.3 | ) | | | (787.5 | ) | | | | | | | | |
International | | | 107.2 | | | | 63.9 | | | | 40.1 | | | | 423.0 | | | | 577.6 | | | | 507.0 | | | | 379.6 | | | | 592.1 | | | | 39.3 | | | | 380.4 | | | | 192.6 | | | | 107.1 | | | | (179.8 | ) | | | | | | | | |
Specialized | | | 42.4 | | | | 8.3 | | | | (24.4 | ) | | | 115.8 | | | | 33.7 | | | | 95.9 | | | | 61.4 | | | | 274.5 | | | | 365.9 | | | | 148.1 | | | | 127.5 | | | | 536.7 | | | | 271.5 | | | | | | | | | |
Hybrid | | | 495.2 | | | | 363.1 | | | | 556.0 | | | | 405.1 | | | | 662.3 | | | | 754.8 | | | | 652.4 | | | | 953.7 | | | | 1,040.0 | | | | 1,188.4 | | | | 807.0 | | | | 478.7 | | | | 263.8 | | | | | | | | | |
Taxable Bond | | | 1,848.4 | | | | 2,103.3 | | | | 1,849.0 | | | | 1,730.6 | | | | 1,201.5 | | | | (112.4 | ) | | | (1,331.7 | ) | | | 1,360.8 | | | | 1,029.9 | | | | 1,290.1 | | | | 1,661.4 | | | | 1,932.1 | | | | 1,315.2 | | | | | | | | | |
Tax-Free Bond | | | 8.6 | | | | 195.4 | | | | 340.0 | | | | (39.8 | ) | | | 87.2 | | | | (573.0 | ) | | | (925.4 | ) | | | (551.8 | ) | | | (272.8 | ) | | | (167.9 | ) | | | (195.4 | ) | | | (16.5 | ) | | | 62.3 | | | | | | | | | |
Money Market Funds | | | (4,139.0 | ) | | | (1,007.5 | ) | | | (1,028.2 | ) | | | (1,889.2 | ) | | | (206.8 | ) | | | (302.3 | ) | | | 2,852.5 | | | | (666.7 | ) | | | (359.6 | ) | | | (1,292.1 | ) | | | (3,285.7 | ) | | | 1,455.8 | | | | 1,605.5 | | | | | | | | | |
| (1) | January 2011 includes outflows of $2.1 billion from a mutual fund clearing services client. November 2010 includes inflows of $2.0 billion from the acquisition of Windhaven. October 2010 includes inflows of $1.2 billion from a mutual fund clearing services client. June 2010 includes net outflows of $22.0 billion from the planned deconversion of a mutual fund clearing services client. |
| (2) | The number of banking accounts excludes credit cards, which totaled 169,000 when the Company ended the sponsorship of its affinity card program at month end September 2010. Prior period amounts have been recast to reflect this change. |
| (3) | Includes revenue trades from commissions or principal mark-ups, trades by clients in asset-based pricing relationships and all commission-free trades, including Schwab Mutual Fund OneSource® funds and ETFs, and other proprietary products. |
| (4) | 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. |
