SAN FRANCISCO--(BUSINESS WIRE)--The Charles Schwab Corporation announced today that its net income was $243 million for the first quarter of 2011, up from $6 million for the first quarter of 2010. The company’s first quarter 2011 net income was 84% higher than the $132 million earned in the year-earlier period excluding certain charges relating to the Schwab YieldPlus Fund® and the company’s affinity credit card program.
Chairman Charles Schwab said, “Although still choppy, the environment is improving and investors are actively engaged with us across all our businesses. Recent data shows that our economy is growing and adding jobs again, the unemployment rate is beginning to recover, and leading indicators are rising. The equity markets are responding, with the major indices rising by approximately 5% during the first quarter. Our clients are working with us to ensure they are participating in the markets appropriately – they have now reduced the percentage of their assets at Schwab held in cash to pre-crisis levels. At the same time, investors are faced with navigating ongoing challenges – including geopolitical turmoil, vacillating energy prices, and the aftermath of major natural disasters – highlighting the importance of the diverse full-service solutions and advice we provide. Overall, approximately $800 billion of the client assets currently at Schwab are either enrolled in one of our advisory offerings or under the guidance of an independent advisor, up 16% from a year ago.”
| Three Months Ended | |||||||||||
| --March 31,-- | % | ||||||||||
| Financial Highlights | 2011 | 2010 | Change | ||||||||
| Net revenues (in millions) | $ | 1,207 | $ | 978 | 23 | % | |||||
| Net income (in millions) | $ | 243 | $ | 6 | N/M | ||||||
| Diluted earnings per share | $ | .20 | $ | - | N/M | ||||||
| Pre-tax profit margin | 32.6 | % | 1.3 | % | |||||||
| Return on stockholders’ equity (annualized) | 15 | % | - | ||||||||
| N/M Not meaningful | |||||||||||
CEO Walt Bettinger commented, “Overall, we’ve had a quality start to 2011 from both a financial and client perspective. Our first quarter earnings reflected the operating leverage inherent in our business model, and our metrics remained strong. New brokerage account openings totaled 224,000, net new assets totaled $25.1 billion excluding a large clearing outflow, and total client assets reached a record $1.65 trillion at month-end March, up 10% from a year ago. We now serve 8.1 million active brokerage accounts, 719,000 banking accounts, and 1.44 million retirement plan participants.”
“As a growth-oriented company, we are continuing our investment in clients during 2011 to help sustain long-term revenue growth,” Mr. Bettinger continued. “We plan to increase our 2011 spending on client-related initiatives by nearly 40% over 2010 to help us significantly improve our service in areas like fixed-income, global investing, mobile and tablet solutions, and advisor-focused technology, as well as to advance our index-and-ETF-based 401(k) and Independent Branch Services initiatives. Already this year, we’ve launched our new StreetSmart Edge™ trading platform, introduced an ETF Select List™, and reached an agreement to acquire optionsXpress so that we can include their highly-regarded options and futures trading capabilities as part of our offerings for investors who trade more actively.”
CFO Joe Martinetto added, “Our diversified revenue streams and ongoing expense discipline are helping to deliver improved financial performance even in a flat short-term interest rate environment. During the first quarter, the Fed Funds target remained unchanged at 0 – 0.25%, but the sustained growth in our client base helped each of our three major sources of revenue – net interest revenue, asset management and administration fees, and trading revenue – once again increase on both a sequential and year-over-year basis, with the annual increases reaching 28%, 20%, and 15%, respectively. Our 7% year-over-year expense growth - after adjusting the first quarter of 2010 for certain charges - was in line with our more aggressive investment plan for 2011. Our pre-tax profit margin of 32.6% was the highest in nine quarters, placing the firm’s performance right where we’d expect to be given the environment and client activity. Our ongoing success with clients keeps us well positioned to drive improved financial performance in the months ahead to the extent short-term interest rates remain flat, and to drive significantly improved performance should rates begin to increase.”
Business highlights for the first quarter (data as of quarter-end unless otherwise noted):
Investor Services
- Net new accounts for the quarter totaled approximately 37,000, down 29% year-over-year. Total accounts reached 5.6 million as of March 31, 2011, up 4% year-over-year.
- Launched a program with AARP to provide their members with nationwide access to special offers on Schwab financial guidance services.
Institutional Services
- Launched the Equity Award Consultation Team for corporate stock plan clients. The team provides personalized education and guidance to U.S.-based participants in the corporate equity plans serviced by Schwab.
Advisor Services
- Released a new Schwab Market Knowledge Tools® white paper that outlines the considerations advisors face when evaluating a hybrid practice model that combines traditional brokerage and fee-based advisory businesses.
Products and Infrastructure
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For Charles Schwab Bank:
- Balance sheet assets = $55.8 billion, up 22% year-over-year.
- Outstanding mortgage and home equity loans = $8.6 billion, up 19% year-over-year.
- First mortgage originations during the quarter = $1.3 billion.
- Delinquency, nonaccrual, and loss reserve ratios for Schwab Bank’s loan portfolio = 0.87%, 0.56% and 0.58%, respectively, at month-end March.
- Schwab Bank High Yield Investor Checking® accounts = 541,000, with $10.1 billion in balances.
- Client assets managed by Windhaven totaled $5.4 billion; up 14% from year-end 2010.
- Total assets under management in Schwab ETFs™ = $3.8 billion. Total assets in Schwab Managed Portfolios-ETFs = $2.5 billion.
- Introduced the Schwab U.S. REIT ETF™ (SCHH) and the Schwab U.S. Mid-Cap ETF™ (SCHM), expanding the company’s existing proprietary offering to 13 equity and fixed income ETFs.
- Introduced the Schwab ETF Select List, a short list of pre-screened, low-cost ETFs across a variety of categories to help clients make investment decisions.
- Launched StreetSmart Edge, the flagship platform for active traders, designed to simplify complex trading activities and provide a more intuitive experience.
- Made Portfolio Performance Reporting available to all clients at no charge on Schwab.com.
Supporting schedules are either attached or located at: www.aboutschwab.com/media/xls/q1_2011_schedule.xls.
Forward Looking Statements
This press release contains forward looking statements relating to the company’s investment in client-related initiatives 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, general market conditions, including the level of interest rates, equity valuations and trading activity; choices made by the company in managing its client-related initiatives; 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-K for the period ending December 31, 2010.
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, 719,000 banking accounts, and $1.65 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, 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 at www.schwab.com and www.aboutschwab.com.
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THE CHARLES SCHWAB CORPORATION Consolidated Statements of Income (In millions, except per share amounts) (Unaudited) |
||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2011 | 2010 | |||||||
| Net Revenues | ||||||||
| Asset management and administration fees | $ | 502 | $ | 420 | ||||
| Interest revenue | 481 | 391 | ||||||
| Interest expense | (45 | ) | (51 | ) | ||||
| Net interest revenue | 436 | 340 | ||||||
| Trading revenue | 241 | 209 | ||||||
| Other | 39 | 31 | ||||||
| Provision for loan losses | (4 | ) | (14 | ) | ||||
| Net impairment losses on securities (1) | (7 | ) | (8 | ) | ||||
| Total net revenues | 1,207 | 978 | ||||||
| Expenses Excluding Interest | ||||||||
| Compensation and benefits | 437 | 402 | ||||||
| Professional services | 92 | 80 | ||||||
| Occupancy and equipment | 71 | 68 | ||||||
| Advertising and market development | 60 | 62 | ||||||
| Communications | 56 | 52 | ||||||
| Depreciation and amortization | 35 | 37 | ||||||
| Class action litigation reserve | - | 196 | ||||||
| Other | 62 | 68 | ||||||
| Total expenses excluding interest | 813 | 965 | ||||||
| Income before taxes on income | 394 | 13 | ||||||
| Taxes on income | (151 | ) | (7 | ) | ||||
| Net Income | $ | 243 | $ | 6 | ||||
| Weighted-Average Common Shares Outstanding — Diluted | 1,207 | 1,188 | ||||||
| Earnings Per Share — Basic | $ | .20 | $ | - | ||||
| Earnings Per Share — Diluted | $ | .20 | $ | - | ||||
| (1) | Net impairment losses on securities include total other-than-temporary impairment losses of $0 million and $28 million, net of $(7) million and $20 million recognized in other comprehensive income, for the three months ended March 31, 2011 and 2010, respectively. |
|
See Notes to Consolidated Statements of Income, Financial and Operating Highlights, and Net Interest Revenue Information. |
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THE CHARLES SCHWAB CORPORATION Financial and Operating Highlights (Unaudited) |
||||||||||||||||||||||||||
|
Q1-11 % change |
2011 | 2010 | ||||||||||||||||||||||||
| (In millions, except per share amounts and as noted) |
vs. Q1-10 |
vs. Q4-10 |
First Quarter |
Fourth Quarter |
Third Quarter |
Second Quarter |
First Quarter |
|||||||||||||||||||
| Net Revenues | ||||||||||||||||||||||||||
| Asset management and administration fees | 20 | % | 1 | % | $ | 502 | $ | 497 | $ | 468 | $ | 437 | $ | 420 | ||||||||||||
| Net interest revenue | 28 | % | 5 | % | 436 | 414 | 387 | 383 | 340 | |||||||||||||||||
| Trading revenue | 15 | % | 17 | % | 241 | 206 | 182 | 233 | 209 | |||||||||||||||||
| Other | 26 | % | 8 | % | 39 | 36 | 32 | 36 | 31 | |||||||||||||||||
| Provision for loan losses | (71 | %) | (56 | %) | (4 | ) | (9 | ) | (3 | ) | (1 | ) | (14 | ) | ||||||||||||
| Net impairment losses on securities | (13 | %) | (59 | %) | (7 | ) | (17 | ) | (3 | ) | (8 | ) | (8 | ) | ||||||||||||
| Total net revenues | 23 | % | 7 | % | 1,207 | 1,127 | 1,063 | 1,080 | 978 | |||||||||||||||||
| Expenses Excluding Interest | ||||||||||||||||||||||||||
| Compensation and benefits | 9 | % | 10 | % | 437 | 397 | 381 | 393 | 402 | |||||||||||||||||
| Professional services | 15 | % | - | 92 | 92 | 85 | 84 | 80 | ||||||||||||||||||
| Occupancy and equipment | 4 | % | 1 | % | 71 | 70 | 66 | 68 | 68 | |||||||||||||||||
| Advertising and market development | (3 | %) | 5 | % | 60 | 57 | 34 | 43 | 62 | |||||||||||||||||
| Communications | 8 | % | 6 | % | 56 | 53 | 49 | 53 | 52 | |||||||||||||||||
| Depreciation and amortization | (5 | %) | (8 | %) | 35 | 38 | 35 | 36 | 37 | |||||||||||||||||
| Class action litigation and regulatory reserve (1) | N/M | N/M | - | 124 | - | - | 196 | |||||||||||||||||||
| Money market mutual fund charges (2) | N/M | N/M | - | - | 132 | - | - | |||||||||||||||||||
| Other (3) | (9 | %) | (7 | %) | 62 | 67 | 82 | 65 | 68 | |||||||||||||||||
| Total expenses excluding interest | (16 | %) | (9 | %) | 813 | 898 | 864 | 742 | 965 | |||||||||||||||||
| Income before taxes on income | N/M | 72 | % | 394 | 229 | 199 | 338 | 13 | ||||||||||||||||||
| Taxes on income | N/M | 37 | % | (151 | ) | (110 | ) | (75 | ) | (133 | ) | (7 | ) | |||||||||||||
| Net Income | N/M | 104 | % | $ | 243 | $ | 119 | $ | 124 | $ | 205 | $ | 6 | |||||||||||||
| Basic earnings per share | N/M | 100 | % | $ | .20 | $ | .10 | $ | .10 | $ | .17 | $ | - | |||||||||||||
| Diluted earnings per share | N/M | 100 | % | $ | .20 | $ | .10 | $ | .10 | $ | .17 | $ | - | |||||||||||||
| Dividends declared per common share | - | - | $ | .06 | $ | .06 | $ | .06 | $ | .06 | $ | .06 | ||||||||||||||
| Weighted-average common shares outstanding - diluted | 2 | % | 1 | % | 1,207 | 1,200 | 1,194 | 1,195 | 1,188 | |||||||||||||||||
| Performance Measures | ||||||||||||||||||||||||||
| Pre-tax profit margin | 32.6 | % | 20.3 | % | 18.7 | % | 31.3 | % | 1.3 | % | ||||||||||||||||
| Return on stockholders’ equity (annualized) | 15 | % | 8 | % | 8 | % | 14 | % | - | |||||||||||||||||
| Financial Condition (at quarter end, in billions) | ||||||||||||||||||||||||||
| Cash and investments segregated | 18 | % | 2 | % | $ | 23.1 | $ | 22.7 | $ | 20.1 | $ | 18.9 | $ | 19.5 | ||||||||||||
| Receivables from brokerage clients | 26 | % | 1 | % | $ | 11.3 | $ | 11.2 | $ | 9.8 | $ | 9.9 | $ | 9.0 | ||||||||||||
| Loans to banking clients | 20 | % | 5 | % | $ | 9.1 | $ | 8.7 | $ | 8.2 | $ | 7.8 | $ | 7.6 | ||||||||||||
| Total assets | 21 | % | 2 | % | $ | 94.9 | $ | 92.6 | $ | 87.3 | $ | 82.3 | $ | 78.3 | ||||||||||||
| Deposits from banking clients | 22 | % | 1 | % | $ | 51.3 | $ | 50.6 | $ | 48.8 | $ | 45.9 | $ | 42.1 | ||||||||||||
| Payables to brokerage clients | 22 | % | 4 | % | $ | 32.1 | $ | 30.9 | $ | 27.7 | $ | 26.4 | $ | 26.4 | ||||||||||||
| Long-term debt (4) | 54 | % | - | $ | 2.0 | $ | 2.0 | $ | 2.0 | $ | 1.3 | $ | 1.3 | |||||||||||||
| Stockholders’ equity | 14 | % | 5 | % | $ | 6.5 | $ | 6.2 | $ | 6.0 | $ | 5.9 | $ | 5.7 | ||||||||||||
| Other | ||||||||||||||||||||||||||
| Full-time equivalent employees (at quarter end, in thousands) | 4 | % | 2 | % | 13.1 | 12.8 | 12.5 | 12.5 | 12.6 | |||||||||||||||||
|
Annualized net revenues per average full-time equivalent employee (in thousands) |
20 | % | 5 | % | $ | 371 | $ | 355 | $ | 340 | $ | 343 | $ | 310 | ||||||||||||
|
Capital expenditures - cash purchases of equipment, office facilities, and property, net (in millions) |
54 | % | (27 | %) | $ | 37 | $ | 51 | $ | 27 | $ | 25 | $ | 24 | ||||||||||||
| Asset Management and Administration Fees | ||||||||||||||||||||||||||
|
Asset management and administration fees before money market mutual fund fee waivers |
13 | % | 3 | % | $ | 614 | $ | 599 | $ | 561 | $ | 550 | $ | 545 | ||||||||||||
| Money market mutual fund fee waivers | (10 | %) | 10 | % | (112 | ) | (102 | ) | (93 | ) | (113 | ) | (125 | ) | ||||||||||||
| Asset management and administration fees | 20 | % | 1 | % | $ | 502 | $ | 497 | $ | 468 | $ | 437 | $ | 420 | ||||||||||||
| Clients’ Daily Average Trades (in thousands) | ||||||||||||||||||||||||||
| Revenue trades (5) | 16 | % | 18 | % | 319.9 | 271.6 | 233.2 | 302.9 | 275.7 | |||||||||||||||||
| Asset-based trades (6) | 7 | % | 24 | % | 48.8 | 39.3 | 36.8 | 46.1 | 45.6 | |||||||||||||||||
| Other trades (7) | 10 | % | 23 | % | 103.8 | 84.6 | 82.6 | 87.6 | 94.2 | |||||||||||||||||
| Total | 14 | % | 19 | % | 472.5 | 395.5 | 352.6 | 436.6 | 415.5 | |||||||||||||||||
| Average Revenue Per Revenue Trade (5) | (4 | %) | - | $ | 12.12 | $ | 12.07 | $ | 12.32 | $ | 12.15 | $ | 12.60 | |||||||||||||
| (1) |
Includes a regulatory reserve of $119 million in the fourth quarter of 2010, a class action litigation reserve of $196 million in the first quarter of 2010, and other charges 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 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(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. |
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See Notes to Consolidated Statements of Income, Financial and Operating Highlights, and Net Interest Revenue Information. |
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_______________________________________ |
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(a) WorldPoints is a registered trademark of FIA Card Services, N.A.; (b) Visa is a registered trademark of Visa International Service Association. |
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THE CHARLES SCHWAB CORPORATION Net Interest Revenue Information (In millions) (Unaudited) |
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| Three Months Ended March 31, | 2011 | 2010 | ||||||||||||||||
|
Average
Balance |
Interest
Revenue/ Expense |
Average
Yield/ Rate |
Average
Balance |
Interest
Revenue/ Expense |
Average
Yield/ Rate |
|||||||||||||
| Interest-earning assets: | ||||||||||||||||||
| Cash and cash equivalents | $ | 4,955 | $ | 3 | 0.25 | % | $ | 8,050 | $ | 5 | 0.25 | % | ||||||
| Cash and investments segregated | 23,191 | 14 | 0.24 | % | 18,840 | 11 | 0.24 | % | ||||||||||
| Broker-related receivables (1) | 373 | - | 0.16 | % | 262 | - | - | |||||||||||
| Receivables from brokerage clients | 10,335 | 117 | 4.59 | % | 8,080 | 100 | 5.02 | % | ||||||||||
| Other securities owned (2) | - | - | - | 252 | - | 0.44 | % | |||||||||||
| Securities available for sale (3) | 25,016 | 106 | 1.72 | % | 22,735 | 128 | 2.28 | % | ||||||||||
| Securities held to maturity | 17,138 | 140 | 3.31 | % | 6,406 | 59 | 3.74 | % | ||||||||||
| Loans to banking clients | 9,009 | 75 | 3.38 | % | 7,564 | 67 | 3.59 | % | ||||||||||
| Loans held for sale | 113 | 1 | 3.59 | % | 86 | 1 | 4.72 | % | ||||||||||
| Total interest-earning assets | 90,130 | 456 | 2.05 | % | 72,275 | 371 | 2.08 | % | ||||||||||
| Other interest revenue | 25 | 20 | ||||||||||||||||
| Total interest-earning assets | $ | 90,130 | $ | 481 | 2.16 | % | $ | 72,275 | $ | 391 | 2.19 | % | ||||||
| Funding sources: | ||||||||||||||||||
| Deposits from banking clients | $ | 50,329 | $ | 17 | 0.14 | % | $ | 40,211 | $ | 31 | 0.31 | % | ||||||
| Payables to brokerage clients (4) | 27,055 | 1 | 0.01 | % | 21,242 | - | 0.01 | % | ||||||||||
| Long-term debt | 2,005 | 27 | 5.46 | % | 1,442 | 20 | 5.62 | % | ||||||||||
| Total interest-bearing liabilities | 79,389 | 45 | 0.23 | % | 62,895 | 51 | 0.33 | % | ||||||||||
| Noninterest-bearing funding sources | 10,741 | 9,380 | ||||||||||||||||
| Total funding sources | $ | 90,130 | $ | 45 | 0.20 | % | $ | 72,275 | $ | 51 | 0.28 | % | ||||||
| Net interest revenue | $ | 436 | 1.96 | % | $ | 340 | 1.91 | % | ||||||||||
| (1) |
Includes receivables from brokers, dealers, and clearing organizations. Interest revenue on broker-related receivables was less than $500,000 in the first quarter of 2011. |
| (2) | Interest revenue on other securities owned was less than $500,000 for the first quarter of 2010. |
| (3) | Amounts have been calculated based on amortized cost. |
| (4) | Interest expense on payables to brokerage clients was less than $500,000 in the first quarter of 2010. |
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See Notes to Consolidated Statements of Income, Financial and Operating Highlights, and Net Interest Revenue Information. |
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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 to Reported Net Income and Expenses Excluding Interest
(In millions) |
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|
Three Months Ended March 31, |
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| 2011 | 2010 | % Change | |||||||||
| Net Income Excluding Certain Charges | $ | 243 | $ | 132 | 84 | % | |||||
| Class action litigation and regulatory reserve (1) | - | 196 | N/M | ||||||||
| Other expense (2) | - | 9 | N/M | ||||||||
| Total charges | - | 205 | N/M | ||||||||
| Tax effect | - | (79 | ) | N/M | |||||||
| Total charges, net of tax | - | 126 | N/M | ||||||||
| Reported Net Income | $ | 243 | $ | 6 | N/M | ||||||
| (1) |
Includes a class action litigation reserve of $196 million in the first quarter of 2010, and other charges relating to the Schwab YieldPlus Fund®. |
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| (2) |
Includes charges 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. |
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Three Months Ended March 31, |
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| 2011 | 2010 | % Change | |||||||||
| Expenses Excluding Certain Charges | $ | 813 | $ | 760 | 7 | % | |||||
| Certain charges listed above | - | 205 | N/M | ||||||||
| Reported Expenses Excluding Interest | $ | 813 | $ | 965 | N/M | ||||||
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THE CHARLES SCHWAB CORPORATION Growth in Client Assets and Accounts (Unaudited) |
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|
Q1-11 % Change |
2011 | 2010 | ||||||||||||||||||||||||
| (In billions, at quarter end, except as noted) |
vs. Q1-10 |
vs. Q4-10 |
First Quarter |
Fourth Quarter |
Third Quarter |
Second Quarter |
First Quarter |
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| Assets in client accounts | ||||||||||||||||||||||||||
|
Schwab One®, other cash equivalents and deposits from banking clients |
23 | % | 3 | % | $ | 83.7 | $ | 81.1 | $ | 77.9 | $ | 72.4 | $ | 68.0 | ||||||||||||
| Proprietary funds (Schwab Funds® and Laudus Funds®): | ||||||||||||||||||||||||||
| Money market funds | (7 | %) | (1 | %) | 152.2 | 154.5 | 152.4 | 156.2 | 164.1 | |||||||||||||||||
| Equity and bond funds | 12 | % | 6 | % | 48.9 | 46.0 | 42.7 | 39.2 | 43.5 | |||||||||||||||||
| Total proprietary funds | (3 | %) | - | 201.1 | 200.5 | 195.1 | 195.4 | 207.6 | ||||||||||||||||||
| Mutual Fund Marketplace® (1) | ||||||||||||||||||||||||||
| Mutual Fund OneSource® | 17 | % | 5 | % | 219.7 | 208.6 | 193.9 | 177.2 | 187.4 | |||||||||||||||||
| Mutual fund clearing services | (50 | %) | 2 | % | 42.8 | 42.1 | 37.5 | 29.3 | 86.0 | |||||||||||||||||
| Other third-party mutual funds | 19 | % | 5 | % | 307.7 | 291.8 | 275.0 | 249.9 | 258.7 | |||||||||||||||||
| Total Mutual Fund Marketplace | 7 | % | 5 | % | 570.2 | 542.5 | 506.4 | 456.4 | 532.1 | |||||||||||||||||
| Total mutual fund assets | 4 | % | 4 | % | 771.3 | 743.0 | 701.5 | 651.8 | 739.7 | |||||||||||||||||
| Equity and other securities (1) | 21 | % | 7 | % | 631.0 | 589.4 | 526.4 | 474.2 | 522.2 | |||||||||||||||||
| Fixed income securities | 1 | % | - | 171.5 | 171.3 | 174.7 | 172.2 | 169.5 | ||||||||||||||||||
| Margin loans outstanding | 28 | % | 3 | % | (10.6 | ) | (10.3 | ) | (9.2 | ) | (9.1 | ) | (8.3 | ) | ||||||||||||
| Total client assets | 10 | % | 5 | % | $ | 1,646.9 | $ | 1,574.5 | $ | 1,471.3 | $ | 1,361.5 | $ | 1,491.1 | ||||||||||||
| Client assets by business | ||||||||||||||||||||||||||
| Investor Services | 18 | % | 4 | % | $ | 714.8 | $ | 686.5 | $ | 644.6 | $ | 568.7 | $ | 606.4 | ||||||||||||
| Advisor Services | 10 | % | 5 | % | 688.6 | 654.9 | 609.9 | 596.7 | 624.0 | |||||||||||||||||
| Other Institutional Services | (7 | %) | 4 | % | 243.5 | 233.1 | 216.8 | 196.1 | 260.7 | |||||||||||||||||
| Total client assets by business | 10 | % | 5 | % | $ | 1,646.9 | $ | 1,574.5 | $ | 1,471.3 | $ | 1,361.5 | $ | 1,491.1 | ||||||||||||
| Net growth in assets in client accounts (for the quarter ended) | ||||||||||||||||||||||||||
| Net new assets | ||||||||||||||||||||||||||
| Investor Services (2) | 30 | % | 14 | % | $ | 5.7 | $ | 5.0 | $ | 2.3 | $ | 1.3 | $ | 4.4 | ||||||||||||
| Advisor Services (2) | (3 | %) | (13 | %) | 14.2 | 16.4 | 8.0 | 10.2 | 14.7 | |||||||||||||||||
| Other Institutional Services (3) | (26 | %) | (35 | %) | 3.1 | 4.8 | 4.3 | (49.0 | ) | 4.2 | ||||||||||||||||
| Total net new assets | (1 | %) | (12 | %) | 23.0 | 26.2 | 14.6 | (37.5 | ) | 23.3 | ||||||||||||||||
| Net market gains (losses) | 9 | % | (36 | %) | 49.4 | 77.0 | 95.2 | (92.1 | ) | 45.2 | ||||||||||||||||
| Net growth (decline) | 6 | % | (30 | %) | $ | 72.4 | $ | 103.2 | $ | 109.8 | $ | (129.6 | ) | $ | 68.5 | |||||||||||
| New brokerage accounts (in thousands, for the quarter ended) | (3 | %) | - | 224 | 225 | 168 | 206 | 230 | ||||||||||||||||||
| Clients (in thousands) | ||||||||||||||||||||||||||
| Active Brokerage Accounts | 3 | % | 1 | % | 8,072 | 7,998 | 7,919 | 7,883 | 7,805 | |||||||||||||||||
| Banking Accounts (4) | 19 | % | 4 | % | 719 | 690 | 665 | 634 | 605 | |||||||||||||||||
| Corporate Retirement Plan Participants | (2 | %) | (2 | %) | 1,444 | 1,477 | 1,473 | 1,467 | 1,469 | |||||||||||||||||
| (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. |