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TD Ameritrade Holding Corporation$48.27$.881.86%

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 TD Ameritrade Reports Record 2016 Earnings
   Monday, October 24, 2016 6:30:01 AM ET

--Record Net Revenues of $3.3B, up 2% Year-Over-Year

--Net New Client Assets of $60B, 9% Annualized Growth Rate

TD Ameritrade Holding Corporation (AMTD ) has released results for fiscal year 2016. The Company generated record earnings and a record $1.58 per diluted share, driven by strong organic growth.

The Company’s results for the fiscal year ended Sept. 30, 2016 include the following: (1)

-- Record $1.58 in earnings per diluted share, on net income of $842 million

-- Net new client assets of approximately $60 billion, a growth rate of 9 percent

-- Average client trades per day of approximately 463,000, up slightly year over year

-- Record net revenues of $3.3 billion, 57 percent of which were asset-based

-- Investment product fee revenue of $374 million, up 12 percent year over year

-- Pre-tax income of $1.3 billion, or 38 percent of net revenues

-- EBITDA(2) of $1.5 billion, or 45 percent of net revenues

-- Interest rate-sensitive assets(3) of $119 billion, up 10 percent year over year

-- Record client assets of approximately $774 billion, up 16 percent year over year

"We’re pleased to report another year of strong growth across all our businesses," said Tim Hockey, TD Ameritrade president and chief executive officer. "Strong asset-gathering and growth in investment products helped us deliver higher earnings despite a challenging rate environment. We averaged 463,000 trades per day and gathered $60 billion in net new client assets, a 9 percent growth rate. We end 2016 with strong momentum and plans firmly in place to continue building long-term earnings power."

"We have a solid competitive position and a strong, healthy culture. Our organic growth strategy will not change, but how we execute that strategy will continue to evolve," Hockey continued. "Over the next 12 months we will continue driving greater organizational efficiency and invest in initiatives that will help us deliver a superior client experience that address the needs of today’s investor -- and tomorrow’s. An intensified commitment to agility and increasing our speed to market will be paramount to our success and a key focus for our management team going forward."

"Fiscal 2016 was a good year with record earnings of $1.58 per diluted share, despite the persistence of near-zero interest rates, and our capital-light model allowed us to return more than $700 million to our shareholders through dividends and share buybacks. Building our long-term earnings power remains our primary focus, and with interest rate-sensitive assets up 10 percent to $119 billion, we remain well-positioned for a rising-rate environment," said Steve Boyle, executive vice president and chief financial officer. "Looking ahead, we expect trading and organic growth to drive fiscal 2017 results, and we’ll remain disciplined on managing expenses while generating savings that can be invested in initiatives to fuel future growth."

Fourth Quarter 2016 Results

TD Ameritrade also released its results for the quarter ended Sept. 30, 2016, which include the following: (1)

-- Net income of $185 million, or $0.35 per diluted share, down 13 percent year over year

-- Net new client assets of approximately $15 billion

-- Average client trades per day of approximately 444,000, down 7 percent year over year

-- Net revenues of $829 million, 58 percent of which were asset-based

-- Investment product fee revenue of $98 million, up 20 percent year over year

-- Pre-tax income of $270 million, or 33 percent of net revenues

-- EBITDA(2) of $327 million, or 39 percent of net revenues

-- Return on average stockholders’ equity (annualized) of 15 percent

Capital Management

During the 2016 fiscal year, the Company paid $362 million, in cash dividends, which included four quarterly dividends of $0.17 per share. The Company also repurchased approximately 12 million shares of its common stock.

The Company has declared an $0.18 per share quarterly cash dividend, an increase of 6 percent year-over-year, payable on Nov. 22, 2016 to all holders of record of common stock as of Nov. 8, 2016.

Fiscal 2017 Outlook

The Company has also released its outlook for the 2017 fiscal year, which reflects expected earnings of $1.50 to $1.80 per diluted share for its 2017 fiscal year.

More information on the fiscal 2017 forecast is available through the Company’s Outlook Statement, located in the "Financials & reports" section of its corporate web site, www.amtd.com.

Company Hosts Conference Call

TD Ameritrade will host a conference call this morning, Oct. 24, 2016, at 8:30 a.m. EDT (7:30 a.m. CDT). Participants may listen to the conference call by dialing 877-648-7976. The Company will webcast the conference call through www.amtd.com, via the "Presentations & Events" page of the web site. A replay of the phone call will be available beginning at 12:00 p.m. EDT (11:00 a.m. CDT) on Oct. 24, 2016 by dialing 855-859-2056 and entering the Conference ID 69450485. The replay will be available until 11:59 p.m. EDT (10:59 p.m. CDT) on Oct. 31, 2016. A transcript of the call will be available on the Company’s corporate web site, www.amtd.com, via either the "Investor Relations" page or the "Presentations & Events" page beginning Tuesday, Oct. 25, 2016.

Information about the Company’s corporate events, including earnings conference calls and webcasts, can be found by visiting www.amtd.com and clicking on "Investor Relations" and "Presentations & Events." Click on the date of the event to access all pertinent links and resources. A high speed Internet connection is required in order to view the webcast.

The Company asks that interested parties visit or subscribe to newsfeeds at www.amtd.com for the most up-to-date corporate financial information, presentation announcements, transcripts and archives. The Company also communicates this information via Twitter, @TDAmeritradePR. Web site links, corporate titles and telephone numbers provided in this release, although correct when published, may change in the future.

About TD Ameritrade Holding Corporation

Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade’s (AMTD ) technology, people and education to help make investing and trading easier to understand and do. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how - bringing Wall Street to Main Street for more than 40 years. An official sponsor of the 2016 U.S. Olympic and Paralympic Teams, as well as an official sponsor of the National Football League, TD Ameritrade has time and again been recognized as a leader in investment services. Please visit TD Ameritrade’s newsroom or www.amtd.com for more information, or read our stories at http://freshaccounts.amtd.com .

Source: TD Ameritrade Holding Corporation

Safe Harbor

This document contains forward-looking statements within the meaning of the federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions of the federal securities laws. In particular, any projections regarding our future revenues, expenses, earnings, capital expenditures, effective tax rates, client trading activity, accounts or stock price, as well as the assumptions on which such expectations are based, are forward-looking statements. These statements reflect only our current expectations and are not guarantees of future performance or results. These statements involve risks, uncertainties and assumptions that could cause actual results or performance to differ materially from those contained in the forward-looking statements. These risks, uncertainties and assumptions include, but are not limited to: general economic and political conditions and other securities industry risks, fluctuations in interest rates, stock market fluctuations and changes in client trading activity, credit risk with clients and counterparties, increased competition, systems failures, delays and capacity constraints, network security risks, liquidity risks, new laws and regulations affecting our business, regulatory and legal matters and uncertainties and other risk factors described in our latest Annual Report on Form 10-K, filed with the SEC on Nov. 20, 2015 and our latest Quarterly Report on Form 10-Q filed thereafter. These forward-looking statements speak only as of the date on which the statements were made. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by the federal securities laws.

(1) Please see the Glossary of Terms, located in "Investor" section of www.amtd.com for more information on how these metrics are calculated.

(2)See attached reconciliation of non-GAAP financial measures.

(3)Interest rate-sensitive assets consist of spread-based assets and money market mutual funds. Ending balances as of Sept. 30, 2016.

Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org) /SIPC (www.SIPC.org).

 
                                                                                                                                             TD AMERITRADE HOLDING CORPORATION
                                                                                                                                             CONSOLIDATED STATEMENTS OF INCOME
                                                                                                                                           In millions, except per share amounts
                                                                                                                                                        (Unaudited)
                                                                                                                                                                          
                                                                                                                             Quarter Ended                                                                                                                       Fiscal Year Ended
                                                                   --------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------
                                                                          Sept. 30, 2016                                     June 30, 2016                                   Sept. 30, 2015                                    Sept. 30, 2016                                              Sept. 30, 2015
                                                                   -----------------------------                     ----------------------------                     -----------------------------                     -----------------------------                     -------------------------------------------------
Revenues:
   Transaction-based revenues:
                                                                                      $     336                                         $    347                                         $     364                                         $   1,372                                         $  1,401
      Commissions and transaction fees
                                                                                                                                                                                                                                                                           
   Asset-based revenues:
      Insured deposit account fees                                                          230                                              234                                               218                                               926                                              839
      Net interest revenue                                                                  151                                              143                                               155                                               595                                              622
      Investment product fees                                             98                            96                             82                            374                           334  
                                                                   -------------------- -------                      -------------------- ------                      -------------------- -------                      -------------------- -------                      -------------------- ------ --------------------
         Total asset-based revenues                                                         479                                              473                                               455                                             1,895                                            1,795
                                                                                                                                                                                                                                                                                                       
   Other revenues                                                         14                            18                             12                             60                            51  
                                                                   -------------------- -------                      -------------------- ------                      -------------------- -------                      -------------------- -------                      -------------------- ------ --------------------
      Net revenues                                                       829                           838                            831                          3,327                         3,247  
                                                                   -------------------- -------                      -------------------- ------                      -------------------- -------                      -------------------- -------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                           
Operating expenses:
   Employee compensation and benefits                                                       222                                              209                                               199                                               839                                              807
   Clearing and execution costs                                                              34                                               35                                                39                                               136                                              148
   Communications                                                                            38                                               33                                                32                                               137                                              125
   Occupancy and equipment costs                                                             43                                               43                                                42                                               171                                              163
   Depreciation and amortization                                                             24                                               23                                                22                                                92                                               91
   Amortization of acquired intangible assets                                                20                                               22                                                23                                                86                                               90
   Professional services                                                                     57                                               47                                                39                                               178                                              159
   Advertising                                                                               59                                               58                                                49                                               260                                              248
   Other                                                                  49                            20                             26                            110                            91  
                                                                   -------------------- -------                      -------------------- ------                      -------------------- -------                      -------------------- -------                      -------------------- ------ --------------------
      Total operating expenses                                           546                           490                            471                          2,009                         1,922  
                                                                   -------------------- -------                      -------------------- ------                      -------------------- -------                      -------------------- -------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                       
Operating income                                                                            283                                              348                                               360                                             1,318                                            1,325
                                                                                                                                                                                                                                                                                                       
Other expense (income):
   Interest on borrowings                                                                    13                                               14                                                13                                                53                                               43
   Gain on sale of investments                                                                -                                                -                                                 -                                                 -                                               (7 )
   Other                                                                   -                             -                              -                              -                             1  
                                                                   -------------------- -------                      -------------------- ------                      -------------------- -------                      -------------------- -------                      -------------------- ------ --------------------
      Total other expense (income)                                        13                            14                             13                             53                            37  
                                                                   -------------------- -------                      -------------------- ------                      -------------------- -------                      -------------------- -------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                       
Pre-tax income                                                                              270                                              334                                               347                                             1,265                                            1,288
Provision for income taxes                                                85                            94                            131                            423                           475  
                                                                   -------------------- -------                      -------------------- ------                      -------------------- -------                      -------------------- -------                      -------------------- ------ --------------------
Net income                                                                            $     185                                         $    240                                         $     216                                         $     842                                         $    813  
                                                                   ==================== =======                      ==================== ======                      ==================== =======                      ==================== =======                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                       
Earnings per share - basic                                                            $    0.35                                         $   0.45                                         $    0.40                                         $    1.59                                         $   1.50
Earnings per share - diluted                                                          $    0.35                                         $   0.45                                         $    0.40                                         $    1.58                                         $   1.49
                                                                                                                                                                                                                                                                                                       
Weighted average shares outstanding - basic                                                 526                                              529                                               541                                               531                                              543
Weighted average shares outstanding - diluted                                               529                                              531                                               545                                               534                                              547
                                                                                                                                                                                                                                                                                                       
Dividends declared per share                                                          $    0.17                                         $   0.17                                         $    0.15                                         $    0.68                                         $   0.60
                                                                                                                                                                                                                                                                           
 
                                                            TD AMERITRADE HOLDING CORPORATION
                                                          CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                       In millions
                                                                       (Unaudited)
                                           
                                                                             Sept. 30, 2016                                      Sept. 30, 2015
                                                                      -----------------------------                     --------------------------------
Assets:
   Cash and cash equivalents                                                             $   1,855                                         $      1,978
   Segregated cash and investments                                                           8,729                                                6,305
   Broker/dealer receivables                                                                 1,190                                                  862
   Client receivables, net                                                                  11,941                                               12,770
   Investments available-for-sale, at fair value                                               761                                                    4
   Goodwill and intangible assets                                                            3,042                                                3,128
   Other                                                                  1,300                             1,328
                                                                      -------------------- -------                      -------------------- ----------
      Total assets                                                                       $  28,818                                         $     26,375
                                                                      ==================== =======                      ==================== ==========
                                                                                                                         
Liabilities and stockholders’ equity:
Liabilities:
   Broker/dealer payables                                                                $   2,040                                         $      2,707
   Client payables                                                                          19,055                                               16,035
   Long-term debt                                                                            1,817                                                1,800
   Other                                                                    855                               930
                                                                      -------------------- -------                      -------------------- ----------
      Total liabilities                                                                     23,767                                               21,472
Stockholders’ equity                                                      5,051                             4,903
                                                                      -------------------- -------                      -------------------- ----------
   Total liabilities and stockholders’ equity                                            $  28,818                                         $     26,375
                                                                      ==================== =======                      ==================== ==========
 
 
                                                                                                           TD AMERITRADE HOLDING CORPORATION
                                                                                                                SELECTED OPERATING DATA
                                                                                                                      (Unaudited)
                                                                                                                                  
                                                                                    
                                                                                                                        Quarter Ended                                                                             Fiscal Year Ended
                                                                                   --------------------------------------------------------------------------------------                     ---------------------------------------------------------
                                                                                   Sept. 30, 2016                       June 30, 2016                     Sept. 30, 2015                      Sept. 30, 2016                         Sept. 30, 2015
                                                                                   --------------                      -------------                      --------------                      --------------                      --------------------
                         Key Metrics:
-------------------------------------------------------------
Net new assets (in billions)                                                                $15.1                              $13.6                               $16.2                               $60.3                                     $63.0
Net new asset growth rate (annualized)                                                         8%                                 8%                                  9%                                  9%                                       10%
Average client trades per day                                                             444,281                            461,941                             478,776                             462,918                                   461,541
                                                                                                                                                                                                                                   
                    Profitability Metrics:
-------------------------------------------------------------
Operating margin                                                                            34.1%                              41.5%                               43.3%                               39.6%                                     40.8%
Pre-tax margin                                                                              32.6%                              39.9%                               41.8%                               38.0%                                     39.7%
Return on average stockholders’ equity (annualized)                                         14.7%                              19.5%                               17.4%                               17.0%                                     16.7%
Net profit margin                                                                           22.3%                              28.6%                               26.0%                               25.3%                                     25.0%
EBITDA(1) as a percentage of net revenues                                                   39.4%                              46.9%                               48.7%                               45.0%                                     46.6%
                                                                                                                                                                                                                                   
                      Liquidity Metrics:
-------------------------------------------------------------
Interest on borrowings (in millions)                                                          $13                                $14                                 $13                                 $53                                       $43
Interest coverage ratio (EBITDA(1)/interest on borrowings)                                   25.2                               28.1                                31.2                                28.2                                      35.2
Cash and cash equivalents (in billions)                                                      $1.9                               $1.9                                $2.0                                $1.9                                      $2.0
Liquid assets available for corporate investing and financing                                $0.8                               $0.7                                $0.5                                $0.8                                      $0.5
activities(1) (in billions)
                                                                                                                                                                                                                                   
              Transaction-Based Revenue Metrics:
-------------------------------------------------------------
Total trades (in millions)                                                                   28.4                               29.6                                30.6                               116.7                                     115.8
Average commissions and transaction fees per trade                                         $11.82                             $11.72                              $11.89                              $11.76                                    $12.09
Trading days                                                                                 64.0                               64.0                                64.0                               252.0                                     251.0
Order routing revenue (in millions)                                                           $75                                $77                                 $76                                $299                                      $299
                                                                                                                                                                                                                                   
                  Spread-Based Asset Metrics:
-------------------------------------------------------------
Average insured deposit account balances (in billions)                                      $87.1                              $83.4                               $78.2                               $83.7                                     $75.7
Average interest-earning assets (in billions)                                                23.8                               22.7                                21.6                                22.7                                      20.2
                                                                                   --------------                      -------------                      --------------                      --------------                      --------------------
   Average spread-based balances (in billions)                                             $110.9                             $106.1                               $99.8                              $106.4                                     $95.9
                                                                                   ==============                      =============                      ==============                      ==============                      ====================
                                                                                                                                                                                                                                   
Insured deposit account fee revenue (in millions)                                            $230                               $234                                $218                                $926                                      $839
Net interest revenue (in millions)                                                            151                                143                                 155                                 595                                       622
                                                                                   --------------                      -------------                      --------------                      --------------                      --------------------
   Spread-based revenue (in millions)                                                        $381                               $377                                $373                              $1,521                                    $1,461
                                                                                   ==============                      =============                      ==============                      ==============                      ====================
                                                                                                                                                                                                                                   
Avg. annualized yield - insured deposit account fees                                        1.03%                              1.11%                               1.09%                               1.09%                                     1.09%
Avg. annualized yield - interest-earning assets                                             2.48%                              2.50%                               2.81%                               2.59%                                     3.03%
   Net interest margin (NIM)                                                                1.35%                              1.41%                               1.46%                               1.41%                                     1.50%
                                                                                                                                                                                                                                   
                 Fee-Based Investment Metrics:
-------------------------------------------------------------
Money market mutual fund fees:
-------------------------------------------------------------
   Average balance (in billions)                                                             $5.3                               $5.8                                $5.7                                $5.7                                      $5.6
   Average annualized yield                                                                 0.28%                              0.26%                               0.02%                               0.19%                                     0.01%
                                                                                   --------------                      -------------                      --------------                      --------------                      --------------------
   Fee revenue (in millions)                                                                   $4                                 $4                                  $0                                 $11                                        $0
                                                                                   --------------                      -------------                      --------------                      --------------                      --------------------
                                                                                                                                                                                                                                   
Market fee-based investment balances:
-------------------------------------------------------------
   Average balance (in billions)                                                           $163.7                             $156.3                              $151.4                              $155.0                                    $150.5
   Average annualized yield                                                                 0.22%                              0.23%                               0.21%                               0.23%                                     0.22%
                                                                                   --------------                      -------------                      --------------                      --------------                      --------------------
   Fee revenue (in millions)                                                                  $94                                $92                                 $82                                $363                                      $334
                                                                                   --------------                      -------------                      --------------                      --------------                      --------------------
                                                                                                                                                                                                                                   
      Average fee-based investment balances (in billions)                                  $169.0                             $162.1                              $157.1                              $160.7                                    $156.1
      Average annualized yield                                                              0.23%                              0.23%                               0.20%                               0.23%                                     0.21%
                                                                                   --------------                      -------------                      --------------                      --------------                      --------------------
      Investment product fee revenue (in millions)                                            $98                                $96                                 $82                                $374                                      $334
                                                                                   ==============                      =============                      ==============                      ==============                      ====================
                                                                                                                                                                                                                                   
(1) See attached reconciliation of non-GAAP financial
measures.
 
NOTE: See Glossary of Terms on the Company’s website at www.amtd.com
for definitions of the above metrics.
                                                                                                                                                                                                                                   
 
                                                                                                               TD AMERITRADE HOLDING CORPORATION
                                                                                                                    SELECTED OPERATING DATA
                                                                                                                          (Unaudited)
                                                                                                                                                              
                                                                                                                               Quarter Ended                                                                             Fiscal Year Ended
                                                                                          --------------------------------------------------------------------------------------                     ---------------------------------------------------------
                                                                                          Sept. 30, 2016    June 30, 2016  Sept. 30, 2015                      Sept. 30, 2016      Sept. 30, 2015
                                                                                          --------------                      -------------                      --------------                      --------------                      --------------------
              Client Account and Client Asset Metrics:
--------------------------------------------------------------------
Funded accounts (beginning of period)                                                          6,872,000                          6,777,000                           6,551,000                           6,621,000                                 6,301,000
Funded accounts (end of period)                                                                6,950,000                          6,872,000                           6,621,000                           6,950,000                                 6,621,000
Percentage change during period                                                                       1%                                 1%                                  1%                                  5%                                        5%
                                                                                                                                                                                                                                          
Client assets (beginning of period, in billions)                                                  $736.3                             $711.2                              $702.3                              $667.4                                    $653.1
Client assets (end of period, in billions)                                                        $773.8                             $736.3                              $667.4                              $773.8                                    $667.4
Percentage change during period                                                                       5%                                 4%                                (5%)                                 16%                                        2%
                                                                                                                                                                                                                                          
                        Net Interest Revenue:
--------------------------------------------------------------------
Segregated cash:
--------------------------------------------------------------------
   Average balance (in billions)                                                                    $8.0                               $7.4                                $5.1                                $7.0                                      $4.7
   Average annualized yield                                                                        0.27%                              0.25%                               0.08%                               0.21%                                     0.11%
                                                                                          --------------                      -------------                      --------------                      --------------                      --------------------
   Interest revenue (in millions)                                                                     $5                                 $5                                  $1                                 $15                                        $5
                                                                                          --------------                      -------------                      --------------                      --------------                      --------------------
                                                                                                                                                                                                                                          
Client margin balances:
--------------------------------------------------------------------
   Average balance (in billions)                                                                   $11.7                              $11.5                               $12.6                               $11.8                                     $12.1
   Average annualized yield                                                                        3.60%                              3.69%                               3.57%                               3.65%                                     3.60%
                                                                                          --------------                      -------------                      --------------                      --------------                      --------------------
   Interest revenue (in millions)                                                                   $107                               $107                                $115                                $436                                      $443
                                                                                          --------------                      -------------                      --------------                      --------------                      --------------------
                                                                                                                                                                                                                                          
Securities borrowing/lending:
--------------------------------------------------------------------
   Average securities borrowing balance (in billions)                                               $1.2                               $1.0                                $0.9                                $0.9                                      $0.9
   Average securities lending balance (in billions)                                                 $1.9                               $2.1                                $2.4                                $2.1                                      $2.3
                                                                                          --------------                      -------------                      --------------                      --------------                      --------------------
                                                                                                                                                                                                                                          
   Net interest revenue - securities borrowing/lending (in millions)                                 $37                                $30                                 $39                                $141                                      $174
                                                                                          --------------                      -------------                      --------------                      --------------                      --------------------
                                                                                                                                                                                                                                          
Other cash and interest-earning investments:
--------------------------------------------------------------------
   Average balance (in billions)                                                                    $2.9                               $2.8                                $3.0                                $3.0                                      $2.5
   Average annualized yield                                                                        0.28%                              0.21%                               0.03%                               0.18%                                     0.04%
                                                                                          --------------                      -------------                      --------------                      --------------                      --------------------
   Interest revenue - net (in millions)                                                               $2                                 $1                                  $0                                  $5                                        $1
                                                                                          --------------                      -------------                      --------------                      --------------                      --------------------
                                                                                                                                                                                                                                          
Client credit balances:
--------------------------------------------------------------------
   Average balance (in billions)                                                                   $15.5                              $14.7                               $13.3                               $14.7                                     $12.4
   Average annualized cost                                                                         0.01%                              0.01%                               0.01%                               0.01%                                     0.01%
                                                                                          --------------                      -------------                      --------------                      --------------                      --------------------
   Interest expense (in millions)                                                                   ($0)                               ($0)                                ($0)                                ($2)                                      ($1)
                                                                                          --------------                      -------------                      --------------                      --------------                      --------------------
                                                                                                                                                                                                                                          
Average interest-earning assets (in billions)                                                      $23.8                              $22.7                               $21.6                               $22.7                                     $20.2
Average annualized yield                                                                           2.48%                              2.50%                               2.81%                               2.59%                                     3.03%
                                                                                          --------------                      -------------                      --------------                      --------------                      --------------------
Net interest revenue (in millions)                                                                  $151                               $143                                $155                                $595                                      $622
                                                                                          ==============                      =============                      ==============                      ==============                      ====================
                                                                                                                                                                                                                                          
NOTE: See Glossary of Terms on the Company’s website at www.amtd.com
for definitions of the above metrics.
 
                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                     TD AMERITRADE HOLDING CORPORATION
                                                                                                                                                                                                                                     RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                                                                                                                                                                                                                                     Dollars in millions
                                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                        Quarter Ended                                                                                                                                                                                                                                                                       Fiscal Year Ended
                                                                                                         ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     --------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                             Sept. 30, 2016                                                                                                                               June 30, 2016                                                                                                           Sept. 30, 2015                                                                                Sept. 30, 2016                                                                        Sept. 30, 2015
                                                                                                         -----------------------------------------------------------------------------------------------------------------------                     ----------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------                     --------------------------------------------------------------                     ---------------------------------------------------------------------
                                                                                                                                 $                                                               % of Net Rev.                                                               $                                                               % of Net Rev.                                                              $                                             % of Net Rev.                                  $                                   % of Net Rev.                                  $                                      % of Net Rev.
                                                                                                         -------------------------------------------------                     -------------------------------------------------                     -------------------------------------------------                     ------------------------------------------------                     ------------------------------------------------                     --------------                     ---------------------------                     --------------                     ---------------------------                     ---------------------
                                     EBITDA (1)
---------------------------------------------------------------------------------
Net income                                                                                                                  $    185                                                                  22.3 %                                                            $    240                                                                 28.6 %                                                            $   216                                             26.0 %                                              $   842                        25.3 %                                              $   813                            25.0 %
Add:
      Depreciation and amortization                                                                                               24                                                                   2.9 %                                                                  23                                                                  2.7 %                                                                 22                                              2.6 %                                                   92                         2.8 %                                                   91                             2.8 %
      Amortization of acquired intangible assets                                                                                  20                                                                   2.4 %                                                                  22                                                                  2.6 %                                                                 23                                              2.8 %                                                   86                         2.6 %                                                   90                             2.8 %
      Interest on borrowings                                                                                                      13                                                                   1.6 %                                                                  14                                                                  1.7 %                                                                 13                                              1.6 %                                                   53                         1.6 %                                                   43                             1.3 %
      Provision for income taxes                                                                               85                                               10.3 %                                               94                                              11.2 %                                             131                          15.8 %                               423                        12.7 %                               475                            14.6 %
                                                                                                         -------------------- ------ --------------------                                                                                            -------------------- ------ --------------------                                                                                           -------------------- ----- --------------------                                                         -------------------- -----                                                         -------------------- -----
EBITDA                                                                                                                      $    327                                               39.4 %                                                            $    393                                              46.9 %                                                            $   405                          48.7 %                                              $ 1,496                        45.0 %                                              $ 1,512                            46.6 %
                                                                                                         ==================== ====== ====================                                                                                            ==================== ====== ====================                                                                                           ==================== ===== ====================                                                         ==================== =====                                                         ==================== =====
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                          As of
                                                                                                         ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                             Sept. 30,                                                             June 30,                                                              Mar. 31,                                                              Dec. 31,                                                             Sept. 30,
                                                                                                                               2016                                                                  2016                                                                  2016                                                                  2015                                                                 2015
                                                                                                         -------------------------------------------------                     -------------------------------------------------                     -------------------------------------------------                     ------------------------------------------------                     ------------------------------------------------
                 Liquid Assets Available for Corporate Investing and
                              Financing Activities (2)
---------------------------------------------------------------------------------
Cash and cash equivalents                                                                                                   $  1,855                                                              $  1,917                                                              $  2,476                                                              $ 1,735                                                              $ 1,978
Less:                  Non-corporate cash and cash equivalents                                             (1,395 )                                           (1,088 )                                           (1,430 )                                            (934 )                                            (909 )
                                                                                                         -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------
         Corporate cash and cash equivalents                                                                                     460                                                                   829                                                                 1,046                                                                  801                                                                1,069
Corporate investments                                                                                                            757                                                                   400                                                                     -                                                                  201                                                                    -
Less:                  Corporate liquidity maintained for operational contingencies                          (773 )                                             (764 )                                             (764 )                                            (764 )                                            (750 )
                                                                                                         -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------
         Excess corporate cash and cash equivalents and investments                                                              444                                                                   465                                                                   282                                                                  238                                                                  319
Excess broker-dealer regulatory net capital                                                                   369                             263                             431                            346                            211  
                                                                                                         -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------
Liquid assets available for corporate investing and financing                                                               $    813                                           $    728                                           $    713                                           $   584                                           $   530  
activities
                                                                                                         ==================== ====== ====================                      ==================== ====== ====================                      ==================== ====== ====================                      ==================== ===== ====================                      ==================== ===== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Note: The term "GAAP" in the following explanation refers to
generally accepted accounting principles in the United States.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
(1)   EBITDA (earnings before interest, taxes, depreciation and
                         amortization) is considered a non-GAAP financial measure as defined
                         by SEC Regulation G. We consider EBITDA an important measure of our
                         financial performance and of our ability to generate cash flows to
                         service debt, fund capital expenditures and fund other corporate
                         investing and financing activities. EBITDA is used as the
                         denominator in the consolidated leverage ratio calculation for
                         covenant purposes under our senior revolving credit facility. EBITDA
                         eliminates the non-cash effect of tangible asset depreciation and
                         amortization and intangible asset amortization. EBITDA should be
                         considered in addition to, rather than as a substitute for, pre-tax
                         income, net income and cash flows from operating activities.
                          
(2)                      Liquid assets available for corporate investing and financing
                         activities is considered a non-GAAP financial measure as defined by
                         SEC Regulation G. We consider "liquid assets available for corporate
                         investing and financing activities" to be an important measure of
                         our liquidity. We include the excess capital of our broker-dealer
                         subsidiaries in the calculation of liquid assets available for
                         corporate investing and financing activities, rather than simply
                         including broker-dealer cash and cash equivalents, because capital
                         requirements may limit the amount of cash available for dividend
                         from the broker-dealer subsidiaries to the parent company. Excess
                         capital, as defined below, is generally available for dividend from
                         the broker-dealer subsidiaries to the parent company. Liquid assets
                         available for corporate investing and financing activities should be
                         considered as a supplemental measure of liquidity, rather than as a
                         substitute for cash and cash equivalents.
                          
                         We define liquid assets available for corporate investing and
                         financing activities as the sum of (a) corporate cash and cash
                         equivalents and investments, excluding an amount that is being
                         maintained to provide liquidity for operational contingencies,
                         including lending to our broker-dealer, futures commission merchant
                         and forex dealer member subsidiaries under intercompany credit
                         agreements and (b) regulatory net capital of (i) our clearing
                         broker-dealer subsidiary in excess of 10% of aggregate debit items
                         and (ii) our introducing broker-dealer subsidiaries in excess of a
                         minimum operational target established by management ($50 million in
                         the case of our primary introducing broker-dealer, TD Ameritrade,
                         Inc.). Liquid assets available for corporate investing and financing
                         activities is based on more conservative measures of broker-dealer
                         net capital than regulatory requirements because we generally manage
                         to higher levels of net capital at the broker-dealer subsidiaries
                         than the regulatory thresholds require.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20161024005547r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20161024005547/en/

SOURCE: TD Ameritrade Holding Corporation"> <Property FormalName="PrimaryTwitterHandle" Value="@TDAmeritradePR

TD Ameritrade Holding Corporation 
For Media: 
Kim Hillyer, 402-574-6523 
Director, Communications & Public Affairs 
kim.hillyer@tdameritrade.com 
@TDAmeritradePR 
or 
For Stockholders and Analysts: 
Jeff Goeser, 402-597-8464 
Director, Investor Relations & Finance 
jeffrey.goeser@tdameritrade.com


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