Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACTS: Media Glen Mathison (415) 636-5448
Investors/Analysts Rich Fowler (415) 636-9869
SCHWAB REPORTS QUARTERLY RESULTS
REVENUES RISE 5%, NET INCOME GROWS 65%
SAN FRANCISCO, July 18, 2005 - The Charles Schwab Corporation announced
today that its net income for the quarter ended June 30, 2005 was $186 million.
In comparison, the Company reported net income of $113 million for the second
quarter of 2004 and $145 million for the first quarter of 2005. For the first
half of 2005, the Company's net income was $331 million, compared with $274
million earned during the same period in 2004.
Three Months Ended Six Months Ended
--June 30,-- % --June 30,-- %
Financial Highlights 2005 2004 Change 2005 2004 Change
- --------------------------------------------------------------------------------
Revenues (in millions) $1,087 $1,034 5% $2,146 $2,142 -%
Net income (in millions) $186 $113 65% $331 $274 21%
Diluted earnings per share $.14 $.08 75% $.25 $.20 25%
Pre-tax profit margin(1) 27.9% 16.3% 25.6% 19.3%
Return on stockholders' equity 17% 10% 15% 12%
1. From continuing operations.
- --------------------------------------------------------------------------------
Chairman and CEO Charles Schwab commented, "Over the last year, we have
been intensely focused on reconnecting with our clients and improving our
financial performance - and this quarter demonstrates that we are succeeding on
both fronts. Total client assets reached a record $1.106 trillion at the end of
June, up 11% from a year ago. Net new client assets totaled $11.2 billion this
quarter, with 85% of these assets going into accounts with an ongoing advice
component. Our total revenues grew 5% versus the second quarter of 2004, even in
the face of a 28% drop in our trading revenues due to a series of price
reductions over the past year. Finally, our net income grew 65% versus a year
ago to $186 million, the third-highest level of net income in our Company's
30-year history. I am tremendously grateful for the efforts of Schwab's
employees in turning around our Company, and I am excited about working with
them as we move the Company forward and deliver the value, performance and
service that Schwab stands for."
CFO Christopher Dodds noted, "The second quarter of 2005 marked the ninth
consecutive quarterly increase in our non-trading revenues, as we continued to
benefit from our strength in attracting client assets and the rising interest
rate environment. These revenues reached a record $900 million, up 16% from the
same period in 2004 - an increase that more than offset the drop in our trading
revenues. Our ongoing focus on streamlining and simplifying the Company led to a
9% reduction in expenses versus a year ago, enabling us to post a 28% pre-tax
profit margin for the quarter, the second-highest level in Schwab's history. For
the first half of 2005, our pre-tax margin totaled 26%, dramatically ahead of
the 19% margin we reported for the year earlier period. We also continued our
focus on capital management during the second quarter - limiting our capital
expenditures to $29 million and repurchasing $149 million of common stock -
which helped us to achieve a 17% return on equity, the highest quarterly level
since the first quarter of 2000."
Business highlights for the second quarter (data as of quarter-end unless
otherwise noted):
Advised Investing
o For accounts at the Company with an ongoing advice component (includes
accounts enrolled in Schwab Private Client(TM) and Schwab Advised
Investing(TM), accounts managed by independent investment advisors (IAs),
and U.S. Trust(R) accounts):
o Net new client assets during the quarter = $9.5 billion.
o Total assets = a record $535 billion, up 15% year-over-year.
o Total number of accounts = 1.5 million.
o Introduced Schwab Portfolios(TM), which are diversified portfolios
developed by Schwab. These portfolios, which include mutual funds or stocks
and exchange traded funds, are designed for investors who have between
$10,000 and $200,000 to invest and are looking for convenient,
easy-to-implement investment advice, including access to ongoing guidance
from a financial consultant.
Individual Investor Business
o Number of clients enrolled in Schwab Private Client and Schwab Advised
Investing = 51,900, up 7% from the prior quarter.
o Announced lower online option pricing of $9.95 per trade plus $0.75 per
contract (previously $0.95 per contract) for clients who place 30 or more
combined equity and option trades per quarter, or with over $1 million in
household assets at Schwab.
o Improved the StreetSmart Pro(R) trading platform to include more advanced
options functionality, such as multi-leg options, Top 10 Lists, Real-Time
Option Chains and Pricing Models.
o Unveiled the CyberTrader Strategy Center(TM), which provides active traders
with the ability to back-test customized trading strategies and scan the
market for stocks that fit their objectives.
Schwab Institutional(R) Business
o Total client assets associated with Schwab Institutional (SI) = $365
billion, up 18% year-over-year.
o Client assets new to the Schwab Advisor Network(R) program during the
quarter = $1.7 billion, up 9% year-over-year.
o Client assets at Schwab associated with IA referral programs = $26.8
billion, up 21% year-over-year.
o Introduced $12.95 online equity pricing for the clients of IAs who enroll
in electronic delivery of trade confirmations and account statements. This
service, called eDelivery, helps to drive down costs and simplify business
processes for both Schwab and IAs.
o Introduced pledged asset lines of credit from Schwab Bank for IAs and their
clients. Eligible securities can be used as collateral for these lines,
allowing current investment strategies to remain in place.
o Formed the National Business Development Team, which is focused on
marketing SI services to advisors with smaller practices.
Corporate Services Business
o Net new assets during the quarter = $885 million.
o Initiated the conversion process to bring an additional $3.2 billion in
retirement and other benefit plan assets to Schwab.
o Total client assets in employer-sponsored retirement plans at Schwab = $133
billion, up 9% year-over-year.
U.S. Trust Business
o Total referrals from Schwab to U.S. Trust were over 360, compared with over
310 in the prior quarter.
o Client assets at U.S. Trust associated with the referral program = $5.1
billion, up 27% year-over-year and up $187 million during the quarter.
o Total client assets at U.S. Trust = $139.8 billion, up 2% year-over-year.
Products
o Total client assets held in third-party Mutual Fund OneSource(R) funds =
$125 billion, up 9% year-over-year.
o Total client assets held in proprietary funds (Schwab Funds(R),
Excelsior(R) and other) = $156 billion, up 2%, year-over-year.
o Total client assets held in fixed income securities = $147 billion, up 13%
year-over-year.
o For Charles Schwab Bank, N.A.:
o Balance sheet assets = $5.2 billion, up 11% from the prior quarter.
o Outstanding mortgage and home equity loans = $1.6 billion.
o First mortgage originations during the quarter = $288 million.
o Launched the Schwab Target Funds, a diversified set of five mutual funds,
which will invest in a combination of Schwab and Laudus Funds(TM) with
varying allocations based on retirement dates ranging from 2010 to 2040.
The fund series also includes a Retirement Income Fund for clients already
in retirement who are looking for improved portfolio income generation.
The Charles Schwab Corporation (NYSE / Nasdaq: SCH), through its operating
subsidiaries, provides securities brokerage and financial services to individual
investors and the independent investment advisors who work with them. With over
7 million individual investor accounts and more than $1 trillion in client
assets, The Charles Schwab Corporation is one of the nation's largest financial
services firms. Its subsidiary Charles Schwab & Co., Inc. (member SIPC) provides
a complete range of investment services and products, including an extensive
selection of mutual funds; financial planning and investment advice; retirement
plans; referrals to independent fee-based investment advisors; and custodial,
operational and trading support for independent fee-based investment advisors.
Its subsidiary Charles Schwab Bank, N.A. (member FDIC) provides banking and
mortgage services and products. The corporation's other operating subsidiaries
include U.S. Trust Corporation (member FDIC) and CyberTrader(R), Inc. (member
SIPC). These companies' Web sites can be reached at www.schwab.com,
www.schwabbank.com, www.ustrust.com, and www.cybertrader.com.
###
THE CHARLES SCHWAB CORPORATION
Consolidated Statement of Income
(In millions, except per share amounts)
(Unaudited)
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Three Months Six Months
Ended Ended
June 30, June 30,
2005 2004 2005 2004
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Revenues
Asset management and administration fees $ 552 $ 517 $ 1,099 $ 1,024
Trading revenue 187 261 394 622
Interest revenue 464 275 876 538
Interest expense (167) (51) (305) (105)
--------- --------- --------- ---------
Net interest revenue 297 224 571 433
Other 51 32 82 63
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Total 1,087 1,034 2,146 2,142
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Expenses Excluding Interest
Compensation and benefits 455 493 909 975
Occupancy and equipment 81 100 163 202
Professional services 57 61 119 119
Depreciation and amortization 51 53 105 109
Communications 48 56 99 117
Advertising and market development 43 46 79 108
Commissions, clearance and floor brokerage 10 11 19 20
Restructuring charges - 2 21 2
Other 39 43 83 77
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Total 784 865 1,597 1,729
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Income from continuing operations before taxes on income 303 169 549 413
Taxes on income (117) (62) (212) (147)
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Income from continuing operations 186 107 337 266
Gain (loss) from discontinued operations, net of tax - 6 (6) 8
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Net Income $ 186 $ 113 $ 331 $ 274
====================================================================================================================================
Weighted-Average Common Shares Outstanding - Diluted 1,314 1,373 1,320 1,374
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Earnings Per Share - Basic
Income from continuing operations $ .14 $ .08 $ .26 $ .20
Gain (loss) from discontinued operations, net of tax - - (.01) -
Net income $ .14 $ .08 $ .25 $ .20
Earnings Per Share - Diluted
Income from continuing operations $ .14 $ .08 $ .26 $ .19
Gain (loss) from discontinued operations, net of tax - - (.01) .01
Net income $ .14 $ .08 $ .25 $ .20
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Dividends Declared Per Common Share $ .022 $ .020 $ .042 $ .034
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See Notes to Consolidated Statement of Income and Financial and Operating Highlights.
THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)
| 2005 | 2004 | 2003 |
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Second First Fourth Third Second First Fourth Third Second
(In millions, except per share amounts and as noted) Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
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Revenues (1)
Asset management and administration fees $ 552 $ 547 $ 544 $ 523 $ 517 $ 507 $ 487 $ 468 $ 448
Trading revenue (2) 187 207 218 185 261 361 327 312 310
Interest revenue, net of interest expense 297 274 258 245 224 209 193 181 179
Other 51 31 40 47 32 31 55 36 34
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Total 1,087 1,059 1,060 1,000 1,034 1,108 1,062 997 971
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Expenses Excluding Interest (1)
Compensation and benefits 455 454 447 455 493 482 435 418 421
Occupancy and equipment 81 82 90 97 100 102 108 106 108
Professional services 57 62 64 62 61 58 52 44 43
Depreciation and amortization 51 54 59 58 53 56 65 69 69
Communications 48 51 53 53 56 61 59 59 54
Advertising and market development 43 36 33 43 46 62 39 31 22
Commissions, clearance and floor brokerage 10 9 10 9 11 9 11 10 11
Restructuring charges (3) - 21 100 112 2 - 17 35 24
Other 39 44 44 39 43 34 43 29 36
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Total 784 813 900 928 865 864 829 801 788
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Income from continuing operations before taxes on income 303 246 160 72 169 244 233 196 183
Taxes on income (1) (117) (95) (58) (26) (62) (85) (87) (72) (57)
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Income from continuing operations 186 151 102 46 107 159 146 124 126
Gain (loss) from discontinued operations, net of tax - (6) (49) (87) 6 2 2 3 -
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Net Income (Loss) $ 186 $ 145 $ 53 $ (41) $ 113 $ 161 $ 148 $ 127 $ 126
====================================================================================================================================
Basic earnings (loss) per share $ .14 $ .11 $ .04 $ (.03) $ .08 $ .12 $ .11 $ .09 $ .10
Diluted earnings (loss) per share $ .14 $ .11 $ .04 $ (.03) $ .08 $ .12 $ .11 $ .09 $ .09
Dividends declared per common share $ .022 $ .020 $ .020 $ .020 $ .020 $ .014 $ .014 $ .014 $ .011
Weighted-average common shares outstanding - diluted 1,314 1,326 1,348 1,364 1,373 1,375 1,371 1,366 1,360
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Performance Measures
Revenue growth (decline) over prior year's quarter 5% (4%) - - 6% 28% 12% 1% N/A
Pre-tax profit margin from continuing operations 27.9% 23.2% 15.1% 7.2% 16.3% 22.0% 21.9% 19.7% 18.8%
Return on stockholders' equity (4) 17% 13% 5% (3%) 10% 14% 13% 12% 12%
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Financial Condition (at quarter end)
Cash and investments segregated (in billions) $ 17.4 $ 18.5 $ 19.0 $ 19.6 $ 20.5 $ 20.8 $ 21.3 $ 22.4 $ 22.6
Receivables from brokerage clients (in billions) $ 9.9 $ 9.7 $ 9.8 $ 9.2 $ 9.3 $ 9.3 $ 8.6 $ 7.7 $ 7.0
Total assets (in billions) $ 46.5 $ 46.4 $ 47.1 $ 45.9 $ 47.3 $ 46.3 $ 45.9 $ 43.8 $ 41.8
Payables to brokerage clients (in billions) $ 25.4 $ 26.4 $ 27.2 $ 25.9 $ 26.9 $ 26.5 $ 27.2 $ 26.1 $ 26.2
Long-term debt (in millions) $ 565 $ 577 $ 585 $ 611 $ 645 $ 779 $ 772 $ 776 $ 811
Stockholders' equity (in millions) $4,318 $4,275 $4,386 $4,555 $4,732 $4,662 $4,461 $4,312 $4,179
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Other (5)
Full-time equivalent employees (at quarter end,
in thousands) 13.6 13.9 14.2 14.8 16.3 16.5 16.0 15.7 15.7
Capital expenditures - cash purchases of equipment,
office facilities, property, and internal-use
software development costs, net (in millions) $ 29 $ 23 $ 43 $ 66 $ 51 $ 34 $ 50 $ 36 $ 31
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Clients' Daily Average Trades (in thousands) (6)
Revenue trades (7) 176.5 191.3 177.7 128.1 142.2 178.0 161.7 145.1 141.0
Schwab Institutional(R) (8) 10.2 9.9 8.7 8.2 8.4 8.5 N/A N/A N/A
Schwab Private Client(TM) (9) 11.3 10.0 9.4 7.8 6.8 5.6 N/A N/A N/A
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Total 198.0 211.2 195.8 144.1 157.4 192.1 N/A N/A N/A
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Active Trader Daily Average Revenue Trades
(in thousands) (7,10) 101.8 106.0 98.0 66.1 72.5 91.5 80.8 72.9 69.5
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Average Revenue Per Revenue Trade (5,7) $16.28 $17.95 $19.32 $22.96 $30.06 $33.16 $32.60 $34.11 $35.12
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(1) Prior period amounts have been adjusted to summarize the impact of The Charles Schwab Corporation's sales of its capital
markets business, Schwab Soundview Capital Markets, and its United Kingdom (U.K.) brokerage subsidiary, Charles Schwab Europe,
in gain (loss) from discontinued operations.
(2) Trading revenue includes commission and principal transaction revenues.
(3) Restructuring charges include costs relating to workforce, facilities, systems hardware, software, and equipment reductions.
(4) Calculated based on annualized quarterly net income (loss) and average stockholders' equity for the quarter.
(5) Prior period amounts have been adjusted to reflect the sale of Schwab Soundview Capital Markets.
(6) Schwab Institutional(R) and Schwab Private Client(TM) (SPC) trading information for periods prior to 2004 is not available.
(7) Revenue trades include all client trades (both individuals and institutions) that generate trading revenue (i.e., commission
revenue or revenue from fixed income securities trading); also known as DART.
(8) Includes trades placed by investment advisors enrolled in an asset-based pricing program. Trading activity is included in the
program fees.
(9) Includes eligible trades placed by individual investors enrolled in SPC. Specified levels of trading activity are included in
SPC fees.
(10) Active Trader includes all CyberTrader clients and Schwab clients enrolled in one of Schwab's Active Trader offers. Active
Trader DART is included in total DART above.
N/A Not available.
See Notes to Consolidated Statement of Income and Financial and Operating Highlights.
THE CHARLES SCHWAB CORPORATION
Reconciliation of Net Income to Adjusted Operating Income
(Unaudited)
| 2005 | 2004 | 2003 |
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Second First Fourth Third Second First Fourth Third Second
(In millions) Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
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Revenues $1,087 $1,059 $1,060 $1,000 $1,034 $1,108 $1,062 $ 997 $ 971
Non-operating revenue (1) - - - (14) - - (17) - -
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Operating revenues $1,087 $1,059 $1,060 $ 986 $1,034 $1,108 $1,045 $ 997 $ 971
====================================================================================================================================
Net income (loss) $ 186 $ 145 $ 53 $ (41) $ 113 $ 161 $ 148 $ 127 $ 126
Adjustments to reconcile net income (loss)
to adjusted operating income:
Other income (1) - - - (14) - - (17) - -
Restructuring charges (2) - 21 100 112 2 - 17 35 24
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Total adjusted items - 21 100 98 2 - - 35 24
Tax (benefit) expense (3) - (8) (38) (37) (1) - 1 (15) (19)
Loss (gain) from discontinued operations,
net of tax (4) - 6 49 87 (6) (2) (2) (3) -
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Total adjusted items, net of tax - 19 111 148 (5) (2) (1) 17 5
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Adjusted operating income, after tax (5) $ 186 $ 164 $ 164 $ 107 $ 108 $ 159 $ 147 $ 144 $ 131
====================================================================================================================================
(1) Primarily consists of pre-tax gains recorded on sales of investments.
(2) Restructuring charges reflect The Charles Schwab Corporation's (the Company's) 2004 cost reduction effort and previous
restructuring initiatives under the Company's plan to reduce operating expenses due to continued economic uncertainties and
difficult market conditions. These charges primarily include workforce, facilities, systems hardware, software, and equipment
reductions.
(3) In the second quarter of 2003, includes an $11 million non-recurring tax benefit.
(4) Represents the summarized impact of the Company's sales of its capital markets business and its U.K. brokerage subsidiary. In
the first quarter of 2005, includes a tax adjustment, severance costs for transitional employees, and facility exit costs
associated with the Company's sale of its capital markets business.
(5) In evaluating the Company's financial performance, management uses adjusted operating income, a non-GAAP income measure which
excludes items as detailed in the table above. Management believes that adjusted operating income is a useful indicator of its
ongoing financial performance, and a tool that can provide meaningful insight into financial performance without the effects of
certain material items.
The Charles Schwab Corporation
Notes to Consolidated Statement of Income and Financial and Operating Highlights
(Unaudited)
The Company
The consolidated statement of income and financial and operating highlights include The Charles Schwab Corporation and its
majority-owned subsidiaries (collectively referred to as the Company), including Charles Schwab & Co., Inc., U.S. Trust Corporation,
and CyberTrader, Inc. Prior period amounts have been adjusted to summarize the impact of the Company's sales of its capital markets
business, Schwab Soundview Capital Markets, and its U.K. brokerage subsidiary, Charles Schwab Europe, in gain (loss) from
discontinued operations. The consolidated statement 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 2004 Annual Report on Form 10-K for the year
ended December 31, 2004 and the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2005. Certain prior periods'
revenues and expenses have been reclassified to conform with the current period presentation. All material intercompany balances and
transactions have been eliminated.
**********
THE CHARLES SCHWAB CORPORATION
Growth in Client Assets and Accounts
(Unaudited)
| 2005 | 2004 | 2003 |
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Second First Fourth Third Second First Fourth Third Second
(In billions, at quarter end, except as noted) Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
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Assets in client accounts
Schwab One(R), other cash equivalents and
deposits from banking clients $ 37.0 $ 37.5 $ 37.2 $ 35.7 $ 36.5 $ 35.4 $ 34.2 $ 31.8 $ 30.2
Proprietary funds (Schwab Funds(R),
Excelsior(R) and other):
Money market funds 109.7 112.0 111.8 114.0 115.0 116.3 119.2 124.4 126.8
Equity and bond funds 46.3 46.4 43.1 38.4 37.5 36.8 34.2 30.7 31.2
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Total proprietary funds 156.0 158.4 154.9 152.4 152.5 153.1 153.4 155.1 158.0
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Mutual Fund Marketplace(R) (1):
Mutual Fund OneSource(R) 125.1 122.2 127.8 114.5 115.2 115.1 101.5 90.1 85.0
Mutual fund clearing services 51.2 47.1 44.2 38.1 33.9 37.5 33.5 28.4 24.5
Other third-party mutual funds 126.4 120.3 114.4 103.6 101.7 100.5 98.4 88.3 84.6
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Total Mutual Fund Marketplace 302.7 289.6 286.4 256.2 250.8 253.1 233.4 206.8 194.1
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Total mutual fund assets 458.7 448.0 441.3 408.6 403.3 406.2 386.8 361.9 352.1
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Equity and other securities (1,2) 472.6 459.6 472.0 429.2 437.0 431.7 424.0 368.3 349.1
Fixed income securities (2) 147.0 141.7 140.5 136.5 130.6 132.1 130.2 122.2 120.2
Margin loans outstanding (9.7) (9.6) (9.8) (9.1) (9.1) (9.1) (8.5) (7.5) (6.9)
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Total client assets $1,105.6 $1,077.2 $1,081.2 $1,000.9 $ 998.3 $ 996.3 $ 966.7 $ 876.7 $ 844.7
====================================================================================================================================
Net growth in assets in client accounts
(for the quarter ended)
Net new client assets (3) $ 11.2 $ 16.1 $ 16.8 $ 13.0 $ 6.7 $ 13.8 $ 24.9 $ 10.6 $ 6.5
Net market gains (losses) 17.2 (20.1) 63.5 (10.4) (4.7) 15.8 65.1 21.4 75.6
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Net growth (decline) $ 28.4 $ (4.0)$ 80.3 $ 2.6 $ 2.0 $ 29.6 $ 90.0 $ 32.0 $ 82.1
====================================================================================================================================
U.S. Trust client assets (4) $ 139.8 $ 138.8 $ 141.1 $ 137.3 $ 137.0 $ 135.8 $ 137.2 $ 116.1 $ 114.0
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New client accounts
(in thousands, for the quarter ended) 144.3 150.6 133.6 114.2 139.1 159.8 145.5 123.9 151.9
Active client accounts (in millions) (5) 7.2 7.3 7.3 7.4 7.5 7.5 7.5 7.6 7.7
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(1) Excludes all proprietary money market, equity, and bond funds.
(2) All amounts have been adjusted to reclassify exchange-traded unit investment trusts from fixed income securities to equity and
other securities.
(3) Includes a one-time special dividend from Microsoft Corporation of $1.2 billion in the fourth quarter of 2004. Includes
individual inflows (outflows) of $2.1 billion and ($6.0) billion in the third and second quarters of 2004, respectively,
related to mutual fund clearing clients. Includes inflows of $12.1 billion in the fourth quarter of 2003 at U.S. Trust related
to the acquisition of State Street Corporation's Private Asset Management group.
(4) Included in total client assets above.
(5) Active client accounts are defined as accounts with balances or activity within the preceding eight months. Reflects the
removal of 192,000 accounts in the second quarter of 2003 related to the Company's withdrawal from the Employee Stock Purchase
Plan business and the transfer of those accounts to other providers.
The Charles Schwab Corporation Monthly Market Activity Report For June 2005
Investor activity for 7.2 million active client accounts(1)
Clients opened 41,400 new
accounts during June 2005.
2004 2005
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
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Change in Client Assets
(in billions of dollars)
Net New Assets (2) .2 3.4 3.7 5.9 3.9 4.6 8.3 4.0 6.3 5.8 1.1
Net Market Gains (Losses) 13.2 (26.1) 3.2 12.5 10.3 32.0 21.2 (17.7) 15.0 (17.4) (16.8)
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Total Client Assets
(at month end, in billions
of dollars) 998.3 975.6 982.5 1,000.9 1,015.1 1,051.7 1,081.2 1,067.5 1,088.8 1,077.2 1,061.5
====================================================================================================================================
Market Indices (at month end)
Dow Jones Industrial Average 10,436 10,140 10,174 10,080 10,028 10,428 10,783 10,490 10,766 10,504 10,193
Nasdaq Composite 2,048 1,887 1,838 1,897 1,975 2,097 2,175 2,062 2,052 1,999 1,922
Standard & Poor's 500 1,141 1,102 1,104 1,115 1,130 1,174 1,212 1,181 1,204 1,181 1,157
Schwab 1000 3,665 3,533 3,543 3,584 3,637 3,783 3,911 3,809 3,884 3,813 3,736
Clients' Daily Average Trades
(in thousands)
Revenue Trades (3) 126.6 133.7 118.6 132.5 153.7 192.1 187.3 185.9 190.9 196.6 182.7
Schwab Institutional(R) (4) 8.2 8.8 7.7 8.2 8.6 8.6 8.7 10.0 9.7 10.0 10.3
Schwab Private Client(TM) (5) 6.7 8.1 7.3 8.0 8.3 9.9 10.1 10.2 10.3 9.6 10.8
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Total 141.5 150.6 133.6 148.7 170.6 210.6 206.1 206.1 210.9 216.2 203.8
====================================================================================================================================
Daily Average Market Share Volume
(in millions)
NYSE 1,371 1,418 1,244 1,322 1,543 1,494 1,463 1,618 1,578 1,683 1,693
Nasdaq 1,623 1,735 1,431 1,511 1,731 1,828 2,042 2,172 1,950 1,849 1,839
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Total 2,994 3,153 2,675 2,833 3,274 3,322 3,505 3,790 3,528 3,532 3,532
====================================================================================================================================
Mutual Fund Net Buys (Sells) (6)
(in millions of dollars)
Large Capitalization Stock 364.8 (23.0) 4.7 202.3 189.3 465.7 75.6 137.4 547.6 106.5 91.8
Small / Mid Capitalization
Stock 664.3 154.1 (87.2) 336.8 434.1 719.9 454.7 46.8 573.2 514.5 39.0
International 481.9 242.5 226.2 445.8 441.0 884.2 893.8 946.4 1,115.6 1,006.6 587.5
Specialized 3.0 82.2 74.4 147.9 (8.5) 77.9 (34.4) 67.7 250.2 334.4 120.6
Hybrid 237.5 97.2 159.8 256.4 243.8 227.5 228.1 250.4 359.0 276.3 216.5
Taxable Bond 320.4 396.2 694.4 821.9 716.2 451.0 293.7 554.2 859.1 410.1 374.9
Tax-Free Bond (188.0) (45.5) 16.8 30.5 22.2 (7.5) 300.4 249.3 215.3 114.9 (67.8)
Money Market Funds (1,399.6) (138.7) 286.6 (1,249.9) (1,165.3) (1,322.2) (22.8) 1,122.0 (1,575.9) 214.6 (985.5)
% change
May Jun Mo. Yr.*
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Change in Client Assets
(in billions of dollars)
Net New Assets (2) 3.9 6.2 59% N/M
Net Market Gains (Losses) 26.9 7.1
- ----------------------------------------------------
Total Client Assets
(at month end, in billions
of dollars) 1,092.3 1,105.6 1% 11%
====================================================
Market Indices (at month end)
Dow Jones Industrial Average 10,468 10,275 (2%) (2%)
Nasdaq Composite 2,068 2,057 (1%) --
Standard & Poor's 500 1,192 1,191 -- 4%
Schwab 1000 3,865 3,881 -- 6%
Clients' Daily Average Trades
(in thousands)
Revenue Trades (3) 169.4 177.3 5% 40%
Schwab Institutional(R) (4) 9.5 10.8 14% 32%
Schwab Private Client(TM) (5) 11.4 11.5 1% 72%
- ----------------------------------------------------
Total 190.3 199.6 5% 41%
====================================================
Daily Average Market Share Volume
(in millions)
NYSE 1,502 1,516 1% 11%
Nasdaq 1,686 1,748 4% 8%
- ----------------------------------------------------
Total 3,188 3,264 2% 9%
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Mutual Fund Net Buys (Sells) (6)
(in millions of dollars)
Large Capitalization Stock 388.3 364.5
Small / Mid Capitalization
Stock 150.7 486.8
International 485.7 411.7
Specialized 94.9 224.7
Hybrid 197.2 196.9
Taxable Bond 437.1 847.9
Tax-Free Bond 117.1 179.7
Money Market Funds (469.6) (1,409.0)
(1) Active client accounts are defined as accounts with balances or activity within the preceding eight months.
(2) December 2004 data includes a one-time special dividend from Microsoft Corporation of $1.2 billion. September 2004 and June
2004 data includes individual inflows (outflows) of $2.1 billion and ($6.0) billion, respectively, related to mutual fund
clearing clients. August 2004 data includes individual inflows (outflows) of $0.5 billion at U.S. Trust related to Special
Fiduciary business clients. Data excludes mutual fund capital gains reinvestments, which were $3.7 billion in December 2004.
(3) Includes all client trades (both individuals and institutions) that generate either commission revenue or revenue from
principal markups (i.e., fixed income); also known as DART.
(4) Includes trades placed by investment advisors enrolled in an asset-based pricing program. Trading activity is included in the
program fees.
(5) Includes eligible trades placed by individual investors enrolled in Schwab Private Client(TM) (SPC). Specified levels of
trading activity are included in SPC fees.
(6) Represents the principal value of client mutual fund (no-load, low-load, load) transactions handled by Schwab and U.S. Trust,
including transactions in Schwab Funds(R), Excelsior(R) Funds and other proprietary funds. Includes institutional funds
available only to Investment Managers. Effective in March 2005, money market fund net buys (sells) include all Excelsior(R)
Fund transactions. Prior amounts have been adjusted to reflect this presentation.
N/M Not meaningful.
* June 2005 vs. June 2004 The Charles Schwab Corporation