The Charles Schwab Corporation (SCHW) 8-K Schwab Reports Third Quarter Revenues Up 11% Year-over-year

EXHIBIT 99.1

News Release

Contacts:

MEDIA:	INVESTORS/ANALYSTS:
Greg Gable	Rich Fowler
Charles Schwab	Charles Schwab
Phone: 415-667-0473	Phone: 415-667-1841

SCHWAB REPORTS THIRD QUARTER REVENUES UP 11% YEAR-OVER-YEAR

Full Service Model Helps Clients Remain Engaged Despite Market Volatility; Core Net New Assets Rise 21%

SAN FRANCISCO, October 17, 2011– The Charles Schwab Corporation announced today that its net income was $220 million for the third quarter of 2011, up 77% from $124 million for the year-earlier period. The company’s third quarter 2010 net income was $218 million prior to the inclusion of certain charges relating to its money market mutual funds and affinity credit card program. Net income for the nine months ended September 30, 2011 was $701 million, up 109% year-over-year. Schwab’s year-to-date 2010 net income was $555 million prior to the inclusion of charges for the items noted above and the settlement of a civil class action lawsuit relating to the Schwab YieldPlus Fund^®.

	Three Months Ended —September  30,—						%  Change			Nine Months Ended —September 30,—						%  Change
Financial Highlights	2011			2010						2011			2010
Net revenues (in millions)	$	1,181		$	1,063			11	%	$	3,578		$	3,121			15	%
Net income (in millions)	$	220		$	124			77	%	$	701		$	335			109	%
Diluted earnings per share	$	.18		$	.10			80	%	$	.57		$	.28			104	%
Pre-tax profit margin		30.5	%		18.7	%					31.9	%		17.6	%
Return on stockholders’ equity (annualized)		12	%		8	%					13	%		8	%

Third quarter 2011 results include non-recurring costs relating to the acquisition of optionsXpress Holdings, Inc. totaling $10 million after-tax.

President and CEO Walt Bettinger said, “Our unique combination of full-service, high-value brokerage continues to perform well and deliver growth despite a difficult economic environment. Although the environment weakened further during the third quarter, our clients stayed with their long-term investing plans. Their cash holdings at Schwab remained close to pre-crisis levels and they were consistently net purchasers of securities. Our full service capabilities were in demand during the recent quarter as enrollments in our advisory solutions continued at a strong pace. We ended September with a total of 2.4 million accounts at Schwab either enrolled in retail advisory offerings or under the guidance of an independent advisor, an increase of 153,000 over September 2010. During the quarter, we introduced new and enhanced features in our StreetSmart Edge^® platform for our active trader clients, and executed a record 1,005,000 trades on a single day in August during the height of recent market volatility. We also handled a high volume of branch, phone and website interactions during the quarter. For example, our systems processed over 68 million log-ins to Schwab.com during the period, a 17% year-over-year increase, while retaining our #1 spot in the respected Keynote measurements for website speed. Net new assets totaled $86.0 billion for the third quarter – excluding the optionsXpress acquisition and major Clearing inflows, core net new assets totaled $17.6 billion, up 21% from last year. Clients opened 191,000 new brokerage accounts during the period, up 14%, and we ended the quarter with 8.5 million active brokerage accounts,

769,000 banking accounts, and 1.46 million retirement plan participants. Client assets totaled $1.58 trillion at month-end September, up 7%.”

“Given the weakened environment, we’ll respond appropriately on the expense side while remaining true to our long-term strategy,” Mr. Bettinger continued. “We recognize that effective expense discipline remains key to our ability to balance near-term profitability with investing in our clients to enhance their service experience and sustain our growth. Our ongoing willingness to make appropriate trade-off decisions helped us to deliver year-to-date revenue and operating income growth of 15% and 27%, respectively. At the same time, we are pushing forward with initiatives that will expand our non rate-sensitive revenues, such as our recent acquisitions of Windhaven and optionsXpress, as well as the development of an integrated technology platform for independent advisors and a new index-based 401(k) offering. Overall, we believe that disciplined, yet sustained, investment in our growing client base is the best path to absorb and offset the environmental pressure we face.”

CFO Joe Martinetto added, “We guard Schwab’s financial stability and flexibility by following our philosophy of near-term profitability / long-term value creation throughout market cycles. By applying the same rigor to managing credit and interest rate risk across all environments, we can keep the firm focused on serving our clients rather than getting pulled off course by financial dislocations. Our continued success with clients and our diversified revenue streams enabled us to keep revenues essentially flat sequentially – trading revenues rose by 21% over the second quarter, and our expanding client base limited the decline in net interest revenue to 2%. Asset management and administration fees declined by 7% sequentially due to lower equity markets and further deterioration in short-term rates, which pushed money market fund fee waivers up to $160 million from $128 million in the prior quarter. With our ongoing expense discipline helping us to achieve a 30.5% pre-tax profit margin in the third quarter, our financial performance remains where we’d expect it to be given the environment. We have a healthy balance sheet with a growing capital base, and we remain well positioned to continue delivering strong near-term profitability while investing for future growth, even if the current rate environment persists for an extended period.”

Business highlights for the third quarter (data as of quarter-end unless otherwise noted):

Investor Services

• Net new accounts for the quarter totaled approximately 18,000, up 64% year-over-year excluding internal transfers in 2010. Total accounts reached 5.7 million as of September 30, 2011, up 2% year-over-year.

• Introduced new and enhanced features for StreetSmart Edge^®, including tools that increase visibility into real-time market movements, to help identify trading opportunities and simplify the overall trading experience.

Institutional Services

Advisor Services

• Launched “RIA Stands for You,” a multi-media campaign designed to define the independent registered investment advisor category. The campaign includes digital advertising and a consumer-facing website, as well as a new toolkit that helps advisors use the campaign as part of their own marketing efforts.

• Launched a comprehensive set of resources for advisors considering full independence, including a white paper and webcast focusing on legal and regulatory considerations, and dedicated website content for advisors currently at independent broker-dealers.

• Established a new business, Schwab Intelligent Technologies™, to work with best-in-class technology providers to create Schwab Intelligent Integration™ solutions for RIAs. Schwab Intelligent Technologies will deliver Schwab OpenView Gateway™, a flexible, open-architecture technology platform that enables data integration between Schwab systems and those of the participating technology providers used by advisors.

Products and Infrastructure

• For Charles Schwab Bank:

• Balance sheet assets = $59.0 billion, up 11% year-over-year.

• Outstanding mortgage and home equity loans = $9.0 billion, up 17% year-over-year.

• First mortgage originations during the quarter = $806 million.

• Delinquency, nonaccrual, and loss reserve ratios for Schwab Bank’s loan portfolio = 0.76%, 0.49% and 0.54%, respectively, at month-end September.

• Achieved first place for our SER-based model portfolio in Barron’s latest stock selection competition (six- and 12-month categories).

• Introduced the Schwab U.S. Aggregate Bond ETF™ (SCHZ), expanding the company’s existing proprietary offering to 14 equity and fixed income ETFs.

• Schwab Bank High Yield Investor Checking^® accounts = 584,000, with $10.2 billion in balances.

• Client assets managed by Windhaven™ totaled $7.2 billion, up 9% from the second quarter of 2011.

• Total assets under management in Schwab ETFs™ = $4.1 billion. Total assets in Schwab Managed Portfolios-ETFs = $2.4 billion.

Supporting schedules are either attached or located at:http://www.aboutschwab.com/media/xls/q3_2011_schedule.xls

Forward Looking Statements

This press release contains forward looking statements relating to the company’s expansion of non rate-sensitive revenues, development and launch of new products, services and capabilities, growing capital base 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 successfully integrate acquisitions and achieve the expected benefits; develop and launch new products, services and capabilities in a timely and successful manner; 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; capital needs; level of expenses; adverse developments in litigation or regulatory matters and the extent of any charges associated with legal matters; the adverse impact of financial reform legislation and related regulations; and other factors set forth in the company’s Form 10-Q for the period ended June 30, 2011.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with more than 300 offices and 8.5 million active brokerage accounts, 1.46 million corporate retirement plan participants, 769,000 banking accounts, and $1.58 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.

###

THE CHARLES SCHWAB CORPORATION

Consolidated Statements of Income

(In millions, except per share amounts)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Net Revenues
Asset management and administration fees	$	466		$	468		$	1,470		$	1,325
Interest revenue		487			442			1,464			1,261
Interest expense		(44	)		(55	)		(134	)		(151	)
Net interest revenue		443			387			1,330			1,110
Trading revenue		248			182			694			624
Other		45			32			119			99
Provision for loan losses		(8	)		(3	)		(13	)		(18	)
Net impairment losses on securities(1)		(13	)		(3	)		(22	)		(19	)
Total net revenues		1,181			1,063			3,578			3,121
Expenses Excluding Interest
Compensation and benefits		423			381			1,290			1,176
Professional services		104			85			288			249
Occupancy and equipment		78			66			222			202
Advertising and market development		48			34			159			139
Communications		56			49			166			154
Depreciation and amortization		39			35			107			108
Class action litigation and regulatory reserve		—			—			7			196
Money market mutual fund charges		—			132			—			132
Other		73			82			199			215
Total expenses excluding interest		821			864			2,438			2,571
Income before taxes on income		360			199			1,140			550
Taxes on income		(140	)		(75	)		(439	)		(215	)
Net Income	$	220		$	124		$	701		$	335
Weighted-Average Common Shares Outstanding — Diluted		1,229			1,194			1,216			1,192
Earnings Per Share — Basic	$	.18		$	.10		$	.58		$	.28
Earnings Per Share — Diluted	$	.18		$	.10		$	.57		$	.28

⁽¹⁾  Net impairment losses on securities include total other-than-temporary impairment losses of $2 million and $0 million, net of $(11) million and $(3) million recognized in other comprehensive income, for the three months ended September 30, 2011 and 2010, respectively, and total other-than-temporary impairment losses of $13 million and $41 million, net of $(9) million and $22 million recognized in other comprehensive income, for the nine months ended September 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)

	Q3-11 % change						2011									2010
(In millions, except per share amounts and as noted)	vs. Q3-10			vs. Q2-11			Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Net Revenues
Asset management and administration fees		—			(7	%)	$	466		$	502		$	502		$	497		$	468
Net interest revenue		14	%		(2	%)		443			451			436			414			387
Trading revenue		36	%		21	%		248			205			241			206			182
Other		41	%		29	%		45			35			39			36			32
Provision for loan losses		167	%		N/M			(8	)		(1	)		(4	)		(9	)		(3	)
Net impairment losses on securities		N/M			N/M			(13	)		(2	)		(7	)		(17	)		(3	)
Total net revenues		11	%		(1	%)		1,181			1,190			1,207			1,127			1,063
Expenses Excluding Interest
Compensation and benefits		11	%		(2	%)		423			430			437			397			381
Professional services		22	%		13	%		104			92			92			92			85
Occupancy and equipment		18	%		7	%		78			73			71			70			66
Advertising and market development		41	%		(6	%)		48			51			60			57			34
Communications		14	%		4	%		56			54			56			53			49
Depreciation and amortization		11	%		18	%		39			33			35			38			35
Class action litigation and regulatory reserve(1)		—			N/M			—			7			—			124			—
Money market mutual fund charges(2)		N/M			—			—			—			—			—			132
Other(3)		(11	%)		14	%		73			64			62			67			82
Total expenses excluding interest		(5	%)		2	%		821			804			813			898			864
Income before taxes on income		81	%		(7	%)		360			386			394			229			199
Taxes on income		87	%		(5	%)		(140	)		(148	)		(151	)		(110	)		(75	)
Net Income		77	%		(8	%)	$	220		$	238		$	243		$	119		$	124
Basic earnings per share		80	%		(10	%)	$	.18		$	.20		$	.20		$	.10		$	.10
Diluted earnings per share		80	%		(10	%)	$	.18		$	.20		$	.20		$	.10		$	.10
Dividends declared per common share							$	.06		$	.06		$	.06		$	.06		$	.06
Weighted-average common shares outstanding – diluted		3	%		2	%		1,229			1,210			1,207			1,200			1,194
Performance Measures
Pre-tax profit margin								30.5	%		32.4	%		32.6	%		20.3	%		18.7	%
Return on stockholders’ equity (annualized)								12	%		14	%		15	%		8	%		8	%
Financial Condition (at quarter end, in billions)
Cash and investments segregated		34	%		13	%	$	27.0		$	23.8		$	23.1		$	22.7		$	20.1
Receivables from brokerage clients		13	%		(4	%)	$	11.1		$	11.6		$	11.3		$	11.2		$	9.8
Loans to banking clients		18	%		2	%	$	9.7		$	9.5		$	9.1		$	8.7		$	8.2
Total assets (4)		18	%		5	%	$	102.9		$	97.6		$	94.9		$	92.6		$	87.3
Deposits from banking clients		11	%		3	%	$	54.1		$	52.3		$	51.3		$	50.6		$	48.8
Payables to brokerage clients		32	%		8	%	$	36.6		$	33.9		$	32.1		$	30.9		$	27.7
Long-term debt		—			—		$	2.0		$	2.0		$	2.0		$	2.0		$	2.0
Stockholders’ equity		28	%		15	%	$	7.7		$	6.7		$	6.5		$	6.2		$	6.0
Other
Full-time equivalent employees (at quarter end, in thousands)		11	%		5	%		13.9			13.2			13.1			12.8			12.5
Annualized net revenues per average full-time equivalent employee (in thousands)		3	%		(3	%)	$	350		$	361		$	371		$	355		$	340
Capital expenditures—cash purchases of equipment, office facilities, and property, net (in millions)		100	%		23	%	$	54		$	44		$	37		$	51		$	27
Clients’ Daily Average Trades (in thousands)
Revenue trades(5)		39	%		22	%		323.1			264.9			319.9			271.6			233.2
Asset-based trades(6)		38	%		16	%		50.6			43.6			48.8			39.3			36.8
Other trades(7)		23	%		15	%		101.7			88.6			103.8			84.6			82.6
Total		35	%		20	%		475.4			397.1			472.5			395.5			352.6
Average Revenue Per Revenue Trade(5)		(2	%)		(2	%)	$	12.04		$	12.23		$	12.12		$	12.07		$	12.32

⁽¹⁾ Includes a regulatory reserve relating to the Schwab YieldPlus Fund^®.

⁽²⁾ Includes charges relating to losses recognized by Schwab money market mutual funds.

⁽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⁾ Total assets as of September 30, 2011, reflect preliminary purchase accounting for the assignment of fair values to optionsXpress Holdings, Inc.’s assets and liabilities acquired. Amounts are subject to refinement as information relative to the closing date fair values becomes available.

⁽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)

	Three Months Ended September 30,															Nine Months Ended September 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	$	6,025	$	3		0.20	%	$	8,265	$	6			0.29	%	$	5,496	$	9		0.22	%	$	7,848	$	16		0.27	%
Cash and investments segregated		26,597		7		0.10	%		19,286		16			0.33	%		25,120		30		0.16	%		19,046		41		0.29	%
Broker-related receivables(1)		300		—		0.03	%		287		—			0.12	%		346		—		0.05	%		297		—		0.04	%
Receivables from brokerage clients		10,749		117		4.32	%		9,151		111			4.81	%		10,784		356		4.41	%		8,720		322		4.94	%
Other securities owned(1)		—		—		—			—		—			—			—		—		—			98		—		0.45	%
Securities available for sale(2)		27,947		116		1.65	%		25,148		124			1.96	%		26,373		332		1.68	%		23,841		376		2.11	%
Securities held to maturity		15,469		128		3.28	%		10,776		95			3.50	%		16,313		413		3.38	%		8,799		240		3.65	%
Loans to banking clients		9,646		79		3.25	%		8,052		69			3.40	%		9,343		231		3.31	%		7,802		204		3.50	%
Loans held for sale		49		1		4.27	%		69		1			4.72	%		63		2		4.11	%		69		3		4.84	%
Total interest-earning assets		96,782		451		1.85	%		81,034		422			2.07	%		93,838		1,373		1.96	%		76,520		1,202		2.10	%
Other interest revenue				36							20								91							59
Total interest-earning assets	$	96,782	$	487		2.00	%	$	81,034	$	442			2.16	%	$	93,838	$	1,464		2.08	%	$	76,520	$	1,261		2.20	%
Funding sources:
Deposits from banking clients	$	53,247	$	16		0.12	%	$	46,942	$	29			0.25	%	$	51,649	$	49		0.13	%	$	43,434	$	85		0.26	%
Payables to brokerage clients		30,962		1		0.01	%		22,882		1			0.02	%		29,288		2		0.01	%		22,103		2		0.01	%
Long-term debt		2,003		27		5.35	%		1,827		25			5.43	%		2,004		81		5.40	%		1,527		64		5.60	%
Total interest-bearing liabilities		86,212		44		0.20	%		71,651		55			0.30	%		82,941		132		0.21	%		67,064		151		0.30	%
Non-interest-bearing funding sources		10,570							9,383			��					10,897							9,456
Other interest expense				—							—								2							—
Total funding sources	$	96,782	$	44		0.18	%	$	81,034	$	55			0.27	%	$	93,838	$	134		0.19	%	$	76,520	$	151		0.26	%
Net interest revenue			$	443		1.82	%			$	387			1.89	%			$	1,330		1.89	%			$	1,110		1.94	%

⁽¹⁾  Interest revenue 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.

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THE CHARLES SCHWAB CORPORATION

Asset Management and Administration Fees Information

(In millions)

(Unaudited)

	Three Months Ended September 30,																Nine Months Ended September 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	$	154,459	$	220			0.57	%	$	154,084	$	214			0.55	%	$	152,171	$	639			0.56	%	$	160,124	$	653			0.55	%
Fee waivers				(160	)							(93	)							(400	)							(331	)
Schwab money market funds		154,459		60			0.15	%		154,084		121			0.31	%		152,171		239			0.21	%		160,124		322			0.27	%
Equity and bond funds(1)		40,865		29			0.28	%		34,302		29			0.34	%		41,550		89			0.29	%		34,483		84			0.33	%
Mutual Fund OneSource®		202,862		168			0.33	%		188,123		150			0.32	%		214,284		520			0.32	%		184,245		443			0.32	%
Total mutual funds(2)	$	398,186		257			0.26	%	$	376,509		300			0.32	%	$	408,005		848			0.28	%	$	378,852		849			0.30	%
Advice solutions (2, 3)	$	108,699		129			0.47	%	$	94,937		99			0.41	%	$	110,254		392			0.48	%	$	96,648		265			0.37	%
Other(4)				80								69								230								211
Total asset management and administration fees			$	466							$	468							$	1,470							$	1,325

⁽¹⁾  Includes Schwab ETFs.

⁽²⁾  Advice solutions include separately 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.

⁽³⁾  Revenue includes temporary fee rebates of $10 million and $62 million in the third quarter and first nine months of 2010, respectively, relating to client assets that participated in advisory and managed account programs under a rebate program that ended in 2010.

⁽⁴⁾  Includes various asset based fees, such as trust fees, 401k record keeping fees, and mutual fund clearing and other service fees.

THE CHARLES SCHWAB CORPORATION

Reconciliation of Net Income Excluding Certain Charges to Reported Net Income

(In millions)

(Unaudited)

	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2011		2010			% Change			2011			2010			% Change
Net Income Excluding Certain Charges	$	220	$	218			1	%	$	705		$	555			27	%
Class action litigation and regulatory reserve (1)		—		—			—			7			196			N/M
Money market mutual fund charges (2)		—		132			N/M			—			132			N/M
Other expense(3)		—		21			N/M			—			30			N/M
Total charges		—		153			N/M			7			358			N/M
Tax effect		—		(59	)		N/M			(3	)		(138	)		N/M
Total charges, net of tax		—		94			N/M			4			220			N/M
Reported Net Income	$	220	$	124			77	%	$	701		$	335			109	%

⁽¹⁾  Relates to the Schwab YieldPlus Fund^®.

⁽²⁾ Relates to losses recognized by the Schwab money market mutual funds.

⁽³⁾ Includes charges of $21 million and $9 million in the third quarter and first quarter of 2010, respectively, relating to the termination of the Company’s Invest First^® and WorldPoints Visa credit card program.

N/M Not meaningful.

THE CHARLES SCHWAB CORPORATION

Growth in Client Assets and Accounts

(Unaudited)

	Q3-11 % Change						2011									2010
(In billions, at quarter end, except as noted)	vs. Q3-10			vs. Q2-11			Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Assets in client accounts
Schwab One®, other cash equivalents and deposits from banking clients		17	%		5	%	$	90.9		$	86.5		$	83.7		$	81.1		$	77.9
Proprietary funds (Schwab Funds® and Laudus Funds®):
Money market funds		2	%		2	%		155.5			152.0			152.2			154.5			152.4
Equity and bond funds		(20	%)		(31	%)		34.3			49.6			48.9			46.0			42.7
Total proprietary funds		(3	%)		(6	%)		189.8			201.6			201.1			200.5			195.1
Mutual Fund Marketplace®(1)
Mutual Fund OneSource®		(3	%)		(15	%)		187.9			220.8			219.7			208.6			193.9
Mutual fund clearing services		163	%		126	%		98.6			43.7			42.8			42.1			37.5
Other third-party mutual funds		6	%		(8	%)		290.4			314.2			307.7			291.8			275.0
Total Mutual Fund Marketplace		14	%		—			576.9			578.7			570.2			542.5			506.4
Total mutual fund assets		9	%		(2	%)		766.7			780.3			771.3			743.0			701.5
Equity and other securities(1)		5	%		(11	%)		552.9			624.5			631.0			589.4			526.4
Fixed income securities		1	%		1	%		176.4			175.1			171.5			171.3			174.7
Margin loans outstanding		14	%		(4	%)		(10.5	)		(10.9	)		(10.6	)		(10.3	)		(9.2	)
Total client assets		7	%		(5	%)	$	1,576.4		$	1,655.5		$	1,646.9		$	1,574.5		$	1,471.3
Client assets by business
Investor Services		2	%		(8	%)	$	655.4		$	711.6		$	714.8		$	686.5		$	644.6
Advisor Services		5	%		(8	%)		640.1			697.8			688.6			654.9			609.9
Other Institutional Services		30	%		14	%		280.9			246.1			243.5			233.1			216.8
Total client assets by business		7	%		(5	%)	$	1,576.4		$	1,655.5		$	1,646.9		$	1,574.5		$	1,471.3
Net growth in assets in client accounts (for the quarter ended)
Net new assets
Investor Services (2)		N/M			N/M		$	11.6		$	2.0		$	5.7		$	5.0		$	2.3
Advisor Services(2)		33	%		—			10.6			10.6			14.2			16.4			8.0
Other Institutional Services(3)		N/M			N/M			63.8			2.8			3.1			4.8			4.3
Total net new assets		N/M			N/M			86.0			15.4			23.0			26.2			14.6
Net market (losses) gains		N/M			N/M			(165.1	)		(6.8	)		49.4			77.0			95.2
Net (decline) growth		N/M			N/M		$	(79.1	)	$	8.6		$	72.4		$	103.2		$	109.8
New brokerage accounts(in thousands, for the quarter ended)(4)		N/M			N/M			506			205			224			225			168
Clients(in thousands)
Active Brokerage Accounts		7	%		5	%		8,510			8,140			8,072			7,998			7,919
Banking Accounts		16	%		3	%		769			745			719			690			665
Corporate Retirement Plan Participants		(1	%)		2	%		1,462			1,439			1,444			1,477			1,473

⁽¹⁾ Excludes all proprietary money market, equity, and bond funds.

⁽²⁾ Includes inflows of $7.5 billion in Investor Services from the acquisition of optionsXpress Holdings, Inc. in the third quarter of 2011. 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 inflows of $60.9 billion from mutual fund clearing services clients in the third quarter of 2011. 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.

⁽⁴⁾ Includes 315,000 new brokerage accounts from the acquisition of optionsXpress Holdings, Inc. in the third quarter of 2011.

N/M Not meaningful.

The Charles Schwab Corporation Monthly Market Activity Report For September 2011

	2010 Sep			Oct			Nov			Dec			2011 Jan			Feb			Mar			Apr			May			Jun			Jul			Aug						% change
																																					Sep			Mo.			Yr.
Change in Client Assets (in billions of dollars)
Net New Assets (1)		4.2			6.8			8.0			11.4			6.4			7.8			8.8			(0.5	)		9.4			6.5			9.9			62.4			13.7			(78	%)		N/M
Net Market Gains (Losses)		73.0			32.3			(5.5	)		50.2			13.5			33.2			2.7			35.0			(18.1	)		(23.7	)		(15.9	)		(58.0	)		(91.2	)
Total Client Assets (at month end, in billions of dollars)		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			1,649.5			1,653.9			1,576.4			(5	%)		7	%
New Brokerage Accounts (2) (in thousands)		56			60			66			99			74			68			82			83			61			61			56			71			379			N/M			N/M
Clients (at month end, in thousands)
Active Brokerage Accounts		7,919			7,932			7,951			7,998			8,022			8,044			8,072			8,112			8,127			8,140			8,152			8,181			8,510			4	%		7	%
Banking Accounts		665			673			681			690			701			710			719			728			736			745			754			765			769			1	%		16	%
Corporate Retirement Plan Participants		1,473			1,468			1,463			1,477			1,455			1,438			1,444			1,436			1,436			1,439			1,443			1,452			1,462			1	%		(1	%)
Clients’ Daily Average Trades (3) (in thousands)		346.0			371.7			413.9			401.1			511.8			478.0			433.7			435.0			395.9			363.8			404.1			545.3			466.8			(14	%)		35	%
Market Indices (at month end)
Dow Jones Industrial Average		10,788			11,119			11,006			11,578			11,892			12,226			12,320			12,811			12,570			12,414			12,143			11,614			10,913			(6	%)		1	%
Nasdaq Composite		2,369			2,507			2,498			2,653			2,700			2,782			2,781			2,874			2,835			2,774			2,756			2,579			2,415			(6	%)		2	%
Standard & Poor’s 500		1,141			1,183			1,181			1,258			1,286			1,327			1,326			1,364			1,345			1,321			1,292			1,219			1,131			(7	%)		(1	%)
Daily Average Market Share Volume (in millions)
NYSE		4,201			4,795			4,604			4,049			4,796			4,421			4,354			3,957			3,813			3,890			3,798			5,781			4,584			(21	%)		9	%
Nasdaq		2,033			2,035			2,004			1,686			2,035			2,085			2,007			1,907			2,022			2,001			1,890			2,514			2,084			(17	%)		3	%
Total US Exchanges		7,353			7,922			7,759			6,708			8,114			7,769			7,826			7,015			7,183			7,226			6,955			10,526			8,455			(20	%)		15	%
Mutual Fund Net Buys (Sells) (4) (in millions of dollars)
Large Capitalization Stock		(467.6	)		(166.9	)		(244.7	)		81.8			538.4			279.9			(98.7	)		(521.7	)		(652.9	)		(656.5	)		(1,345.0	)		(431.2	)		(226.7	)
Small / Mid Capitalization Stock		(239.5	)		(92.4	)		63.4			388.6			522.9			317.0			(65.1	)		56.8			(303.3	)		(787.5	)		(611.7	)		(965.8	)		(301.8	)
International		423.0			577.6			507.0			379.6			592.1			39.3			380.4			192.6			107.1			(179.8	)		(494.4	)		(479.4	)		(378.1	)
Specialized		115.8			33.7			95.9			61.4			274.5			365.9			148.1			127.5			536.7			271.5			63.1			(52.5	)		136.2
Hybrid		405.1			662.3			754.8			652.4			953.7			1,040.0			1,188.4			807.0			478.7			263.8			(16.6	)		170.7			(31.5	)
Taxable Bond		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			762.3			(669.0	)		980.1
Tax-Free Bond		(39.8	)		87.2			(573.0	)		(925.4	)		(551.8	)		(272.8	)		(167.9	)		(195.4	)		(16.5	)		62.3			85.1			(317.9	)		90.5
Money Market Funds		(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			228.3			5,882.3			(1,263.4	)

⁽¹⁾  September 2011 includes inflows of $7.5 billion related to the acquisition of optionsXpress Holdings, Inc. August 2011 includes inflows of $56.1 billion from a mutual fund clearing services client. July 2011 includes inflows of $4.8 billion from a mutual fund clearing services client. 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.

⁽²⁾  September 2011 includes 315,000 new brokerage accounts related to the acquisition of optionsXpress Holdings, Inc.

⁽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.

N/M Not meaningful.