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TD Ameritrade Holding Corporation$47.22($.55)(1.15%)

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 TD Ameritrade Reports Record Net New Client Assets
   Tuesday, July 18, 2017 7:30:01 AM ET

TD Ameritrade Holding Corporation (AMTD ) has released results for the third quarter of fiscal 2017. The Company gathered a record $22.0 billion in net new client assets for the quarter and reported approximately 510,000 client trades per day, on average.

The Company’s results for the quarter ended June 30, 2017 include the following:(1)

-- Record net new client assets of approximately $22.0 billion, an annualized growth rate of 10 percent

-- Average client trades per day of approximately 510,000, up 10 percent year over year

-- Record net revenues of $931 million, 62 percent of which were asset-based



-- Client assets of $882 billion, up 20 percent year over year

-- $0.44 in earnings per diluted share, down 2 percent year over year, on net income of $231 million

-- Pre-tax income of $373 million, or 40 percent of net revenues

-- Interest rate-sensitive assets(2) of $120 billion, up 6 percent year over year

"We’re pleased to report another quarter of strong growth across all of our businesses," said Tim Hockey, TD Ameritrade president and chief executive officer. "Investors remained broadly engaged, with strong trading volumes despite persistent low market volatility. We’re seeing healthy trends in new account growth and asset inflows from both new and existing clients, and our institutional channel continues to break records for asset gathering. Our technology pipelines are full of enhancements that address client irritants and introduce new, cutting edge solutions. We have a lot to feel good about, but as we plan for the close of the Scottrade acquisition on the horizon, we have much more yet to do."

"It was another eventful quarter as major indices hit all-time highs and the Fed raised interest rates for the third time in the fiscal year," said Steve Boyle, executive vice president and chief financial officer. "These factors accelerated our organic growth and provided revenue tailwinds, as anticipated. While this is certainly good news and provides us with even more strategic flexibility in fiscal 2018, we remain committed to thoughtful expense management, balancing new investments with the needs of our clients, employees and shareholders."

Capital Management

The Company paid $95 million in its third fiscal quarter, or $0.18 per share, in cash dividends.

The Company has declared an $0.18 per share quarterly cash dividend, payable on Aug. 15, 2017 to all holders of record of common stock as of Aug. 1, 2017.

Company Hosts Conference Call

TD Ameritrade will host its June Quarter conference call this morning, July 18, 2017, 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 by dialing 855-859-2056 and entering the Conference ID 37772509 beginning at 11:30 a.m. EDT (10:30 a.m. CDT) on July 18, 2017. The replay will be available until 11:59 p.m. EDT (10:59 p.m. CDT) on July 25, 2017. 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 Wednesday, July 19, 2017.

Interested parties can 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.

Source: TD Ameritrade Holding Corporation

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. 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 Fresh Accounts.

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, stock price or any projections or expectations regarding the proposed business combination transaction between us and Scottrade Financial Services, Inc., 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, the ability to obtain regulatory approvals and meet other closing conditions to the proposed transaction, including the completion of the merger between Scottrade Bank and TD Bank, N.A., on the expected terms and schedule; delay in closing the transaction; difficulties and delays in integrating the TD Ameritrade and Scottrade businesses or fully realizing cost savings and other benefits; business disruption following the proposed transaction; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; TD Ameritrade’s and Scottrade’s businesses experiencing disruptions due to transaction-related uncertainty or other factors making it more difficult to maintain relationships with employees, customers, other business partners or governmental entities; the inability to realize synergies or to implement integration plans and other consequences associated with mergers, acquisitions and uncertainties and other risk factors described in our latest Annual Report on Form 10-K, filed with the SEC on Nov. 18, 2016 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) Interest rate-sensitive assets consist of spread-based assets and money market mutual funds. Ending balances as of June 30, 2017.

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                                                                                                                                                                       Nine Months Ended
                                                                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------------------------------
                                                                                                                     June 30, 2017                                                         Mar. 31, 2017                                                         June 30, 2016                                                         June 30, 2017                                                                June 30, 2016
                                                                                                             ----------------------------                                          ----------------------------                                          ----------------------------                                          ----------------------------                                          ------------------------------------------
Revenues:
   Transaction-based revenues:
      Commissions and transaction fees                                                                                          $    335                                                              $    365                                                              $    347                                                              $  1,054                                                              $                1,035
                                                                                                                                                                                                                                                                                                                                                                                                      
   Asset-based revenues:
      Insured deposit account fees                                                                                                   286                                                                   269                                                                   234                                                                   800                                                                                 696
      Net interest revenue                                                                                                           175                                                                   154                                                                   143                                                                   480                                                                                 444
      Investment product fees                                                                                     112                                                103                                                 96                                                309                                                              276
                                                                                                             -------------------- ------                                           -------------------- ------                                           -------------------- ------                                           -------------------- ------                                           -------------------- --------------------
         Total asset-based revenues                                                                                                  573                                                                   526                                                                   473                                                                 1,589                                                                               1,416
                                                                                                                                                                                                                                                                                                                                                                                                                           
   Other revenues                                                                                                  23                                                 13                                                 18                                                 50                                                               46
                                                                                                             -------------------- ------                                           -------------------- ------                                           -------------------- ------                                           -------------------- ------                                           -------------------- --------------------
      Net revenues                                                                                                931                                                904                                                838                                              2,693                                                            2,497
                                                                                                             -------------------- ------                                           -------------------- ------                                           -------------------- ------                                           -------------------- ------                                           -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                      
Operating expenses:
   Employee compensation and benefits                                                                                                234                                                                   229                                                                   209                                                                   677                                                                                 617
   Clearing and execution costs                                                                                                       38                                                                    37                                                                    35                                                                   111                                                                                 102
   Communications                                                                                                                     34                                                                    29                                                                    33                                                                    98                                                                                  99
   Occupancy and equipment costs                                                                                                      44                                                                    45                                                                    43                                                                   133                                                                                 128
   Depreciation and amortization                                                                                                      25                                                                    25                                                                    23                                                                    74                                                                                  67
   Amortization of acquired intangible assets                                                                                         19                                                                    19                                                                    22                                                                    57                                                                                  66
   Professional services                                                                                                              67                                                                    59                                                                    47                                                                   178                                                                                 121
   Advertising                                                                                                                        58                                                                    80                                                                    58                                                                   195                                                                                 202
   Other                                                                                                           18                                                 23                                                 20                                                 65                                                               61
                                                                                                             -------------------- ------                                           -------------------- ------                                           -------------------- ------                                           -------------------- ------                                           -------------------- --------------------
      Total operating expenses                                                                                    537                                                546                                                490                                              1,588                                                            1,463
                                                                                                             -------------------- ------                                           -------------------- ------                                           -------------------- ------                                           -------------------- ------                                           -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                           
Operating income                                                                                                                     394                                                                   358                                                                   348                                                                 1,105                                                                               1,034
                                                                                                                                                                                                                                                                                                                                                                                                      
Other expense:
   Interest on borrowings                                                                                                             20                                                                    14                                                                    14                                                                    48                                                                                  39
   Loss on debt refinancing                                                                                         1                                                  -                                                  -                                                  1                                                                -
                                                                                                             -------------------- ------                                           -------------------- ------                                           -------------------- ------                                           -------------------- ------                                           -------------------- --------------------
      Total other expense                                                                                          21                                                 14                                                 14                                                 49                                                               39
                                                                                                             -------------------- ------                                           -------------------- ------                                           -------------------- ------                                           -------------------- ------                                           -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                           
Pre-tax income                                                                                                                       373                                                                   344                                                                   334                                                                 1,056                                                                                 995
Provision for income taxes                                                                                        142                                                130                                                 94                                                395                                                              338
                                                                                                             -------------------- ------                                           -------------------- ------                                           -------------------- ------                                           -------------------- ------                                           -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                           
Net income                                                                                                                      $    231                                                              $    214                                                              $    240                                                              $    661                                                              $                  657
                                                                                                             ==================== ======                                           ==================== ======                                           ==================== ======                                           ==================== ======                                           ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                           
Earnings per share - basic                                                                                                      $   0.44                                                              $   0.41                                                              $   0.45                                                              $   1.25                                                              $                 1.23
Earnings per share - diluted                                                                                                    $   0.44                                                              $   0.40                                                              $   0.45                                                              $   1.25                                                              $                 1.23
                                                                                                                                                                                                                                                                                                                                                                                                                           
Weighted average shares outstanding - basic                                                                                          528                                                                   528                                                                   529                                                                   528                                                                                 533
Weighted average shares outstanding - diluted                                                                                        530                                                                   530                                                                   531                                                                   530                                                                                 536
                                                                                                                                                                                                                                                                                                                                                                                                                           
Dividends declared per share                                                                                                    $   0.18                                                              $   0.18                                                              $   0.17                                                              $   0.54                                                              $                 0.51
                                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                            
                                                                                                              TD AMERITRADE HOLDING CORPORATION
                                                                                                            CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                                                                         In millions
                                                                                                                         (Unaudited)
 
                                                                                                                        June 30, 2017                                                          Sept. 30, 2016
                                                                                                                                                      ----------------------------                                          --------------------------------
Assets:
                     Cash and cash equivalents                                                                                                                           $  2,880                                                              $      1,855
                     Segregated cash and investments                                                                                                                        7,328                                                                     8,729
                     Broker/dealer receivables                                                                                                                              1,239                                                                     1,190
                     Client receivables, net                                                                                                                               13,504                                                                    11,941
                     Investments available-for-sale, at fair value                                                                                                            747                                                                       757
                     Goodwill and intangible assets                                                                                                                         2,985                                                                     3,042
                     Other                                                                                                                               1,427                                                  1,304
                                                                                                                                                      -------------------- ------                                           -------------------- ----------
                                            Total assets                                                                                                                 $ 30,110                                                              $     28,818
                                                                                                                                                      ==================== ======                                           ==================== ==========
                                                                                                                                                                                                                             
Liabilities and stockholders’ equity:
                                                                                                                                                                                                                             
Liabilities:
                     Broker/dealer payables                                                                                                                              $  2,366                                                              $      2,040
                     Client payables                                                                                                                                       18,928                                                                    19,055
                     Long-term debt                                                                                                                                         2,561                                                                     1,817
                     Other                                                                                                                                 795                                                    855
                                                                                                                                                      -------------------- ------                                           -------------------- ----------
                                            Total liabilities                                                                                                              24,650                                                                    23,767
Stockholders’ equity                                                                                                                                     5,460                                                  5,051
                                                                                                                                                      -------------------- ------                                           -------------------- ----------
                                            Total liabilities and stockholders’ equity                                                                                   $ 30,110                                                              $     28,818
                                                                                                                                                      ==================== ======                                           ==================== ==========
                                                                                                                                                                                                                             
 
                                                                                                                                                                                                                  TD AMERITRADE HOLDING CORPORATION
                                                                                                                                                                                                                       SELECTED OPERATING DATA
                                                                                                                                                                                                                             (Unaudited)
                                                                                                                                                                                                                                                  
                                                                                                                                                                                       Quarter Ended                                                                                                                                                                            Nine Months Ended
                                                                                                                          -----------------------------------------------------------------------------------------------------------------------------------------------------------------                                                       -----------------------------------------------------------------------------------------------------------
                                                                                                                                   June 30, 2017                     Mar. 31, 2017                     June 30, 2016                                                           June 30, 2017                           June 30, 2016
                                                                                                                          ------------------------------                                          ------------------------------                                          ------------------------------                                          ------------------------------                                          ------------------------------------------
                       Key Metrics:
----------------------------------------------------------
Net new assets (in billions)                                                                                                                 $    22.0                                                               $    19.5                                                               $    13.6                                                               $    60.2                                                               $                 45.2
Net new asset growth rate (annualized)                                                                                                             10%                                                                     10%                                                                      8%                                                                     10%                                                                                   9%
Average client trades per day                                                                                                                  510,358                                                                 516,994                                                                 461,941                                                                 504,700                                                                              469,262
                                                                                                                                                                                                                                                                                                                                                                                                                           
                  Profitability Metrics:
----------------------------------------------------------
Operating margin                                                                                                                                 42.3%                                                                   39.6%                                                                   41.5%                                                                   41.0%                                                                                41.4%
Pre-tax margin                                                                                                                                   40.1%                                                                   38.1%                                                                   39.9%                                                                   39.2%                                                                                39.8%
Return on average stockholders’ equity (annualized)                                                                                              17.2%                                                                   16.3%                                                                   19.5%                                                                   16.8%                                                                                17.7%
Net profit margin                                                                                                                                24.8%                                                                   23.7%                                                                   28.6%                                                                   24.5%                                                                                26.3%
EBITDA(1) as a percentage of net revenues                                                                                                        46.9%                                                                   44.5%                                                                   46.9%                                                                   45.9%                                                                                46.7%
                                                                                                                                                                                                                                                                                                                                                                                                                           
                    Liquidity Metrics:
----------------------------------------------------------
Interest on borrowings (in millions)                                                                                                         $      20                                                               $      14                                                               $      14                                                               $      48                                                               $                   39
Interest coverage ratio (EBITDA(1)/interest on borrowings)                                                                                        21.9                                                                    28.7                                                                    28.1                                                                    25.7                                                                                 29.9
Cash and cash equivalents (in billions)                                                                                                      $     2.9                                                               $     2.2                                                               $     1.9                                                               $     2.9                                                               $                  1.9
Liquid assets available for corporate investing
                                                                                                                                             $     1.8                                                               $     1.0                                                               $     0.5                                                               $     1.8                                                               $                  0.5
  and financing activities(1)(2) (in billions)
                                                                                                                                                                                                                                                                                                                                                                                                                           
            Transaction-Based Revenue Metrics:
----------------------------------------------------------
Total trades (in millions)                                                                                                                        32.2                                                                    32.1                                                                    29.6                                                                    94.6                                                                                 88.2
Average commissions and transaction fees per trade                                                                                           $   10.42                                                               $   11.38                                                               $   11.72                                                               $   11.14                                                               $                11.74
Trading days                                                                                                                                      63.0                                                                    62.0                                                                    64.0                                                                   187.5                                                                                188.0
Order routing revenue (in millions)                                                                                                          $      83                                                               $      83                                                               $      77                                                               $     245                                                               $                  223
                                                                                                                                                                                                                                                                                                                                                                                                                           
                Spread-Based Asset Metrics:
----------------------------------------------------------
Average insured deposit account balances (in billions)                                                                                       $    92.3                                                               $    95.1                                                               $    83.4                                                               $    93.5                                                               $                 82.6
Average interest-earning assets (in billions)                                                                                  25.5                                                 24.6                                                 22.7                                                 24.9                                                              22.2
                                                                                                                          -------------------- -------                                            -------------------- -------                                            -------------------- -------                                            -------------------- -------                                            -------------------- --------------------
   Average spread-based balances (in billions)                                                                                               $   117.8                                                               $   119.7                                                               $   106.1                                                               $   118.4                                                               $                104.8
                                                                                                                          ==================== =======                                            ==================== =======                                            ==================== =======                                            ==================== =======                                            ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                
Insured deposit account fee revenue (in millions)                                                                                            $     286                                                               $     269                                                               $     234                                                               $     800                                                               $                  696
Net interest revenue (in millions)                                                                                              175                                                  154                                                  143                                                  480                                                               444
                                                                                                                          -------------------- -------                                            -------------------- -------                                            -------------------- -------                                            -------------------- -------                                            -------------------- --------------------
   Spread-based revenue (in millions)                                                                                                        $     461                                                               $     423                                                               $     377                                                               $   1,280                                                               $                1,140
                                                                                                                          ==================== =======                                            ==================== =======                                            ==================== =======                                            ==================== =======                                            ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                
Avg. annualized yield - insured deposit account fees                                                                                             1.23%                                                                   1.13%                                                                   1.11%                                                                   1.13%                                                                                1.11%
Avg. annualized yield - interest-earning assets                                                                                                  2.71%                                                                   2.50%                                                                   2.50%                                                                   2.55%                                                                                2.62%
   Net interest margin (NIM)                                                                                                                     1.55%                                                                   1.41%                                                                   1.41%                                                                   1.43%                                                                                1.43%
                                                                                                                                                                                                                                                                                                                                                                                                                           
               Fee-Based Investment Metrics:
----------------------------------------------------------
Money market mutual fund fees:
----------------------------------------------------------
  Average balance (in billions)                                                                                                              $     3.6                                                               $     3.5                                                               $     5.8                                                               $     3.6                                                               $                  5.8
  Average annualized yield                                                                                                    0.43%                                                0.44%                                                0.26%                                                0.42%                                                             0.16%
                                                                                                                          -------------------- -------                                            -------------------- -------                                            -------------------- -------                                            -------------------- -------                                            -------------------- --------------------
  Fee revenue (in millions)                                                                                                                  $       4                                                               $       4                                                               $       4                                                               $      12                                                               $                    7
                                                                                                                          -------------------- -------                                            -------------------- -------                                            -------------------- -------                                            -------------------- -------                                            -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                           
Market fee-based investment balances:
----------------------------------------------------------
  Average balance (in billions)                                                                                                              $   186.1                                                               $   176.9                                                               $   156.3                                                               $   176.6                                                               $                152.2
  Average annualized yield                                                                                                    0.23%                                                0.22%                                                0.23%                                                0.22%                                                             0.23%
                                                                                                                          -------------------- -------                                            -------------------- -------                                            -------------------- -------                                            -------------------- -------                                            -------------------- --------------------
  Fee revenue (in millions)                                                                                                                  $     108                                                               $      99                                                               $      92                                                               $     297                                                               $                  269
                                                                                                                          -------------------- -------                                            -------------------- -------                                            -------------------- -------                                            -------------------- -------                                            -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                
     Average fee-based investment balances (in billions)                                                                                     $   189.7                                                               $   180.4                                                               $   162.1                                                               $   180.2                                                               $                158.0
     Average annualized yield                                                                                                 0.23%                                                0.23%                                                0.23%                                                0.23%                                                             0.23%
                                                                                                                          -------------------- -------                                            -------------------- -------                                            -------------------- -------                                            -------------------- -------                                            -------------------- --------------------
     Investment product fee revenue (in millions)                                                                                            $     112                                                               $     103                                                               $      96                                                               $     309                                                               $                  276
                                                                                                                          ==================== =======                                            ==================== =======                                            ==================== =======                                            ==================== =======                                            ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                           
(1) See attached reconciliation of non-GAAP financial
measures.
(2) Effective in March 2017, the liquid assets
available for corporate investing and financing activities metric
was revised. Prior periods have been updated
  to conform to the current presentation.
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                                                                                                                                                                                Nine Months Ended
                                                                                                                                   -----------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                       -------------------------------------------------------------------------------------------------------------
                                                                                                                                             June 30, 2017                       Mar. 31, 2017                       June 30, 2016                                                             June 30, 2017                            June 30, 2016
                                                                                                                                   --------------------------------                                          --------------------------------                                          --------------------------------                                          --------------------------------                                          ------------------------------------------
              Client Account and Client Asset Metrics:
-------------------------------------------------------------------
Funded accounts (beginning of period)                                                                                                                   7,189,000                                                                 7,046,000                                                                 6,777,000                                                                 6,950,000                                                                            6,621,000
Funded accounts (end of period)                                                                                                                         7,279,000                                                                 7,189,000                                                                 6,872,000                                                                 7,279,000                                                                            6,872,000
Percentage change during period                                                                                                                                1%                                                                        2%                                                                        1%                                                                        5%                                                                                   4%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Client assets (beginning of period, in billions)                                                                                                      $     846.7                                                               $     797.0                                                               $     711.2                                                               $     773.8                                                               $                667.4
Client assets (end of period, in billions)                                                                                                            $     882.4                                                               $     846.7                                                               $     736.3                                                               $     882.4                                                               $                736.3
Percentage change during period                                                                                                                                4%                                                                        6%                                                                        4%                                                                       14%                                                                                  10%
                                                                                                                                                                                                                                                                                                                                                                                                                                            
                        Net Interest Revenue:
-------------------------------------------------------------------
Segregated cash:
-------------------------------------------------------------------
  Average balance (in billions)                                                                                                                       $       8.0                                                               $       8.7                                                               $       7.4                                                               $       8.5                                                               $                  6.7
  Average annualized yield                                                                                                               0.67%                                                  0.46%                                                  0.25%                                                  0.47%                                                             0.18%
                                                                                                                                   -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- --------------------
  Interest revenue (in millions)                                                                                                                      $        14                                                               $        10                                                               $         5                                                               $        30                                                               $                    9
                                                                                                                                   -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                            
Client margin balances:
-------------------------------------------------------------------
  Average balance (in billions)                                                                                                                       $      12.6                                                               $      11.9                                                               $      11.5                                                               $      12.1                                                               $                 11.8
  Average annualized yield                                                                                                               3.81%                                                  3.67%                                                  3.69%                                                  3.68%                                                             3.67%
                                                                                                                                   -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- --------------------
  Interest revenue (in millions)                                                                                                                      $       121                                                               $       109                                                               $       107                                                               $       338                                                               $                  329
                                                                                                                                   -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                            
Securities borrowing/lending:
-------------------------------------------------------------------
  Average securities borrowing balance (in billions)                                                                                                  $       1.0                                                               $       0.9                                                               $       1.0                                                               $       1.0                                                               $                  0.8
  Average securities lending balance (in billions)                                                                                                    $       2.1                                                               $       1.7                                                               $       2.1                                                               $       1.9                                                               $                  2.1
                                                                                                                                   -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- --------------------
  Net interest revenue - securities borrowing/lending (in millions)                                                                                   $        34                                                               $        31                                                               $        30                                                               $        99                                                               $                  104
                                                                                                                                   -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                            
Other cash and interest-earning investments:
-------------------------------------------------------------------
  Average balance (in billions)                                                                                                                       $       3.9                                                               $       3.1                                                               $       2.8                                                               $       3.3                                                               $                  2.9
  Average annualized yield                                                                                                               0.67%                                                  0.54%                                                  0.21%                                                  0.56%                                                             0.14%
                                                                                                                                   -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- --------------------
  Interest revenue - net (in millions)                                                                                                                $         6                                                               $         4                                                               $         1                                                               $        14                                                               $                    3
                                                                                                                                   -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                            
Client credit balances:
-------------------------------------------------------------------
  Average balance (in billions)                                                                                                                       $      15.9                                                               $      16.1                                                               $      14.7                                                               $      16.0                                                               $                 14.4
  Average annualized cost                                                                                                                0.01%                                                  0.01%                                                  0.01%                                                  0.01%                                                             0.01%
                                                                                                                                   -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- --------------------
  Interest expense (in millions)                                                                                                          ($0)                                                   ($0)                                                   ($0)                                                   ($1)                                                              ($1)
                                                                                                                                   -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Average interest-earning assets (in billions)                                                                                                         $      25.5                                                               $      24.6                                                               $      22.7                                                               $      24.9                                                               $                 22.2
Average annualized yield                                                                                                                 2.71%                                                  2.50%                                                  2.50%                                                  2.55%                                                             2.62%
                                                                                                                                   -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- ---------                                            -------------------- --------------------
Net interest revenue (in millions)                                                                                                                    $       175                                                               $       154                                                               $       143                                                               $       480                                                               $                  444
                                                                                                                                   ==================== =========                                            ==================== =========                                            ==================== =========                                            ==================== =========                                            ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                            
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                                                                                                                                                                                                                                                                                                                              Nine Months Ended
                                                                                                                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                           June 30, 2017                                                                                                                                Mar. 31, 2017                                                                                                                         June 30, 2016                                                                                                                 June 30, 2017                                                                                                                    June 30, 2016
                                                                                                                                                                --------------------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------                                          -----------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------
                                                                                                                                                                             $                                                               % of Net Rev.                                                                $                                                                % of Net Rev.                                                                $                                                         % of Net Rev.                                                       $                                                        % of Net Rev.                                                       $                                                           % of Net Rev.
                                                                                                                                                                ---------------------------                                          -----------------------------                                          -----------------------------                                          -----------------------------                                          -----------------------------                                          -------------                                           ---------------------------                                          -------------                                           ---------------------------                                          --------------------
                                           EBITDA (1)
-----------------------------------------------------------------------------------------------
Net income - GAAP                                                                                                                                                                  $   231                                                                  24.8%                                                              $     214                                                                  23.7%                                                              $     240                                                   28.6%                                                              $   661                                                   24.5%                                                              $   657                                                          26.3%
Add:
                                  Depreciation and amortization                                                                                                                         25                                                                   2.7%                                                                     25                                                                   2.8%                                                                     23                                                    2.7%                                                                   74                                                    2.7%                                                                   67                                                           2.7%
                                  Amortization of acquired intangible assets                                                                                                            19                                                                   2.0%                                                                     19                                                                   2.1%                                                                     22                                                    2.6%                                                                   57                                                    2.1%                                                                   66                                                           2.6%
                                  Interest on borrowings                                                                                                                                20                                                                   2.1%                                                                     14                                                                   1.5%                                                                     14                                                    1.7%                                                                   48                                                    1.8%                                                                   39                                                           1.6%
                                  Provision for income taxes                                                                                                        142                                                                  15.3%                                                 130                                                                  14.4%                                                  94                                                   11.2%                                               395                                                   14.7%                                               338                                                          13.5%
                                                                                                                                                                -------------------- -----                                                                                                                  -------------------- -------                                                                                                                  -------------------- -------                                                                                                   -------------------- -----                                                                                                   -------------------- -----
EBITDA - non-GAAP                                                                                                                                                                  $   437                                                                  46.9%                                                              $     402                                                                  44.5%                                                              $     393                                                   46.9%                                                              $ 1,235                                                   45.9%                                                              $ 1,167                                                          46.7%
                                                                                                                                                                ==================== =====                                                                                                                  ==================== =======                                                                                                                  ==================== =======                                                                                                   ==================== =====                                                                                                   ==================== =====
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                         As of
                                                                                                                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                         June 30,                                                              Mar. 31,                                                               Dec. 31,                                                               Sept. 30,                                                              June 30,
                                                                                                                                                                           2017                                                                  2017                                                                   2016                                                                   2016                                                                   2016
                                                                                                                                                                ---------------------------                                          -----------------------------                                          -----------------------------                                          -----------------------------                                          -----------------------------
                              Liquid Assets Available for Corporate
                             Investing and Financing Activities (2)
-----------------------------------------------------------------------------------------------
Cash and cash equivalents - GAAP                                                                                                                                                   $ 2,880                                                              $   2,231                                                              $   1,662                                                              $   1,855                                                              $   1,917
Less:                             Non-corporate cash and cash equivalents                                                                                         (973)                                             (1,286)                                             (1,203)                                             (1,363)                                             (1,067)
                                                                                                                                                                -------------------- -----                                           -------------------- -------                                           -------------------- -------                                           -------------------- -------                                           -------------------- -------
                                    Corporate cash and cash equivalents                                                                                                              1,907                                                                    945                                                                    459                                                                    492                                                                    850
Corporate investments                                                                                                                                                                  747                                                                    747                                                                    747                                                                    757                                                                    400
Less:                               Corporate liquidity maintained for operational contingencies                                                                                     (723)                                                                  (723)                                                                  (773)                                                                  (773)                                                                  (764)
                                    Amounts maintained for corporate working capital                                                                                                  (87)                                                                   (87)                                                                   (87)                                                                   (87)                                                                   (87)
                                    Amounts held as collateral for derivative contracts                                                                            (34)                                                (40)                                                (32)                                                (93)                                                (94)
                                                                                                                                                                -------------------- -----                                           -------------------- -------                                           -------------------- -------                                           -------------------- -------                                           -------------------- -------
                                      Excess corporate cash and cash equivalents and investments                                                                                     1,810                                                                    842                                                                    314                                                                    296                                                                    305
Excess regulatory net capital over management targets                                                                                                                 8                                                 122                                                 478                                                 357                                                 242
                                                                                                                                                                -------------------- -----                                           -------------------- -------                                           -------------------- -------                                           -------------------- -------                                           -------------------- -------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Liquid assets available for corporate investing and financing                                                                                                                      $ 1,818                                                              $     964                                                              $     792                                                              $     653                                                              $     547
activities - non-GAAP
                                                                                                                                                                ==================== =====                                           ==================== =======                                           ==================== =======                                           ==================== =======                                           ==================== =======
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
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, GAAP
                                 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 regulated
                                subsidiaries in the calculation of liquid assets available for
                                corporate investing and financing activities, rather than simply
                                including the regulated subsidiaries’ cash and cash equivalents,
                                because capital requirements may limit the amount of cash available
                                for dividend from the regulated subsidiaries to the parent company.
                                Excess capital, as defined below, is generally available for
                                dividend from the regulated 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 GAAP cash and cash
                                equivalents.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                We define liquid assets available for corporate investing and
                                financing activities as the sum of (a) excess corporate cash and
                                cash equivalents and investments and (b) our regulated subsidiaries
                                net capital in excess of minimum operational targets established by
                                management. Excess corporate cash and cash equivalents and
                                investments includes cash and cash equivalents from our investment
                                advisory subsidiaries and excludes (i) amounts being maintained to
                                provide liquidity for operational contingencies, including lending
                                to our broker-dealer and FCM/FDM subsidiaries under intercompany
                                credit agreements, (ii) amounts maintained for corporate working
                                capital and (iii) amounts held as collateral for derivative
                                contracts. Liquid assets available for corporate investing and
                                financing activities is based on more conservative measures of net
                                capital than regulatory requirements because we generally manage to
                                higher levels of net capital at our regulated subsidiaries than the
                                regulatory thresholds require.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170718005457r1&sid=cmtx6&distro=nx&

View source version on businesswire.com: http://www.businesswire.com/news/home/20170718005457/en/

SOURCE: TD Ameritrade Holding Corporation

TD Ameritrade Holding Corporation 
Kim Hillyer, 402-574-6523 
Director, Communications 
kim.hillyer@tdameritrade.com 
or 
Jeff Goeser, 402-597-8464 
Director, Investor Relations 
jeffrey.goeser@tdameritrade.com


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