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 Schwab Reports Record Quarterly Net Income of $964 Million, Up 23%
   Monday, April 15, 2019 8:45:00 AM ET

Revenues Grow 14% Year-Over-Year to $2.7 Billion, Marking Fifteen Consecutive Record Quarters

Core Net New Assets Total $51.7 Billion and Total Client Assets Reach a Record $3.59 Trillion

SAN FRANCISCO--(BUSINESS WIRE)-- The Charles Schwab Corporation announced today that its net income for the first quarter of 2019 was a record $964 million, up 3% from $935 million for the prior quarter, and up 23% from $783 million for the first quarter of 2018.

This press release features multimedia. View the full release here:https://www.businesswire.com/news/home/20190415005169/en/

  Three Months Ended March 31,   %
Financial Highlights   2019   2018   Change
 
Net revenues (in millions) $ 2,723 $ 2,398 14%
Net income (in millions) $ 964 $ 783 23%
Diluted earnings per common share $ .69 $ .55 25%
Pre-tax profit margin 46.4 % 41.8 %

Return on average common stockholders’ equity (annualized)

20 % 18 %
 
Note: All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding.


CEO Walt Bettinger said, “Over the past quarter, our Virtuous Cycle, driven by our “Through Clients’ Eyes” strategy, continued to attract client accounts and assets at a robust pace. The equity markets gathered momentum during the quarter, with the S&P 500 rising 21% from the December correction and posting its best first quarter since 1998. At the same time, investors faced a mixed geopolitical and economic landscape, including international trade negotiations, the evolving Brexit debate, and a potential slowing in Fed rate hikes. While we believe that this environment impacted investor sentiment and activity, demand for help and support from Schwab remained strong. New brokerage accounts totaled 386,000 during the quarter and client account openings have now exceeded 100,000 for 28 consecutive months. In addition, clients entrusted us with total core net new assets of $51.7 billion for the quarter, representing a 6% annualized growth rate, consistent with our long-term average and a noteworthy start to 2019, particularly given the unsettled environment. Total client assets reached a record $3.59 trillion at month-end March, up 8% year-over-year.”

“We remain steadfast in our ‘no-trade offs’ approach to serving clients, diligently seeking to offer straightforward and transparent products and services that provide investors with greater choice and value,” Mr. Bettinger continued. “Recently, we marked the sixth anniversary of Schwab ETF OneSourceTM, already one of the largest commission-free exchange-traded fund programs in the industry, by doubling its lineup to 500 ETFs covering 79 Morningstar® categories. Client assets held in program ETFs have grown at a compound annual rate of approximately 50% since inception, reaching $180.9 billion at quarter end. In addition, as part of our ongoing efforts to provide clients with the help and advice needed to pursue their investing goals, we recently replaced Schwab Intelligent AdvisoryTM with Schwab Intelligent Portfolios PremiumTM. This solution combines automated investing with guidance from a certified planning professional in a subscription-based package designed to offer a simpler, more modern and more approachable planning and investing experience. Client assets enrolled in our digital advisory solutions at quarter end reached $37.7 billion, up 23% from a year ago. Overall assets receiving ongoing advice grew faster than total client assets over the past year, and totaled $1.87 trillion at March 31, 2019.”

Mr. Bettinger added, “Recently, Schwab was selected as one of the 2019 FORTUNE Top 50 ‘World’s Most Admired Companies®’, as well as rated #1 Overall in the 2019 Investor’s Business Daily Best Online Brokers Survey. In addition, we ranked Highest in Investor Satisfaction with DIY Self-Directed Services in the J.D. Power 2019 U.S. Self-Directed Investor Satisfaction Study.* While these accolades come from distinct perspectives, we believe they all reflect the importance of our emphasis on value, service, transparency, and trust as we attract and support a growing share of U.S. investable wealth.”

CFO Peter Crawford commented, “Our unwavering focus on championing our clients’ goals translated into strong first quarter financial performance as well as business growth, indicating the Schwab financial formula continues to operate as intended. Overall, revenues rose by 14% year-over-year to a record $2.7 billion. Net interest revenue grew 33% to a record $1.7 billion largely due to higher interest-earning assets stemming from the transfer of sweep money market funds to bank and broker-dealer sweep as well as client cash allocations. Additionally, our net interest margin expanded to 2.46%, up from 2.12% a year earlier, following the Fed’s four rate hikes in 2018. Asset management and administration fees decreased 11% to $755 million, mainly as a result of lower money market fund revenue as we executed on sweep transfers. Trading revenue declined by 8% to $185 million largely due to client first quarter trading activity that was strong but below last year’s then-record pace. Finally, other revenue rose 23%, driven by a gain on the assignment of leased office space in our 215 Fremont building in San Francisco. Turning to expenses, our 5% increase in spending was consistent with our expectations. Compensation was 10% higher in the first quarter as we hired to serve our expanding client base. Professional services rose by 9%, primarily due to our investments in projects to further drive efficiency and scale. Our disciplined expense management helped result in a 900 basis point gap between year-over-year revenue and expense growth, and a 46.4% pre-tax profit margin. We believe this focus positions us well to maintain and even improve our ratio of expenses to client assets, which was just 17 bps for the quarter using average balances, and 16 bps based on the quarter-end total.”

Mr. Crawford concluded, “During the first quarter, we continued to emphasize effective balance sheet management. While clients sorted through their invested and transactional cash allocations, we transferred $11.6 billion from sweep money market funds to bank and broker-dealer sweep. This activity contributed to consolidated balance sheet assets of $283 billion at quarter end. A small amount of the $14.4 billion in sweep money market fund balances outstanding as of month-end March remains to be transferred; we expect to complete those transfers by the end of April. In January 2019, we announced a 31% increase in our dividend and a $4 billion stock repurchase authorization, which we expect to access in coming quarters to return excess capital to stockholders. Our preliminary Tier 1 Leverage Ratio ended the quarter at 7.2%, modestly above our operating objective of 6.75%-7%. We achieved a 20% return on equity for the third consecutive quarter – our strongest performance since early 2009 – exemplifying our commitment to being good stewards of our stockholders’ capital.”

Supporting schedules and selected balances are either attached or located at:

*Disclaimer: From FORTUNE Magazine, February 2019, ©2019 Fortune Media IP Limited. FORTUNE and The World’s Most Admired Companies are registered trademarks of Fortune Media IP Limited and are used under license. FORTUNE and Fortune Media IP Limited are not affiliated with, and do not endorse the products or services of, Charles Schwab.

From Investor’s Business Daily, January 28, 2019, ©2019 Investor’s Business Daily, Inc. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution or retransmission of this Content without express written permission is prohibited.

Charles Schwab received the highest numerical score in the DIY segment of the J.D. Power 2019 Self-Directed Investor Satisfaction Study of investors’ satisfaction who use self-directed investment firms. Visit .

Commentary from the CFO

Periodically, our Chief Financial Officer provides insight and commentary regarding Schwab’s financial picture at: . The most recent commentary, which provides perspective on crossing the $250 billion consolidated asset threshold for heightened regulatory requirements, was posted on August 14, 2018.

Forward-Looking Statements

This press release contains forward-looking statements relating to Fed rate hikes; growth in the client base, accounts and assets; efficiency and scale; ratio of expenses to client assets; transfers to sweep; capital returns to stockholders; and Tier 1 Leverage Ratio operating objective. Achievement of these expectations and objectives is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations.

Important factors that may cause such differences include, but are not limited to, general market conditions, including the level of interest rates, equity valuations, and trading activity; the company’s ability to attract and retain clients and registered investment advisors and grow those relationships and client assets; competitive pressures on pricing, including deposit rates; the company’s ability to develop and launch new products, services, infrastructure and capabilities in a timely and successful manner; client use of the company’s advisory solutions and other products and services; the company’s ability to manage expenses; client sensitivity to interest rates; capital and liquidity needs and management; and other factors set forth in the company’s most recent report on Form 10-K.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with more than 360 offices and 11.8 million active brokerage accounts, 1.7 million corporate retirement plan participants, 1.3 million banking accounts, and $3.59 trillion in client assets as of March 31, 2019. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, ), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at and .

 

THE CHARLES SCHWAB CORPORATION

Consolidated Statements of Income

(In millions, except per share amounts)

(Unaudited)

 
  Three Months Ended
March 31,
    2019   2018
Net Revenues  
Interest revenue $ 1,998 $ 1,421
Interest expense (317 ) (158 )
Net interest revenue 1,681 1,263
Asset management and administration fees 755 851
Trading revenue 185 201
Other   102     83  
Total net revenues   2,723     2,398  
Expenses Excluding Interest
Compensation and benefits 850 770
Professional services 170 156
Occupancy and equipment 131 122
Advertising and market development 69 73
Communications 62 62
Depreciation and amortization 83 73
Regulatory fees and assessments 32 51
Other   62     89  
Total expenses excluding interest   1,459     1,396  
Income before taxes on income 1,264 1,002
Taxes on income   300     219  
Net Income   964     783  
Preferred stock dividends and other   39     37  
Net Income Available to Common Stockholders   $ 925     $ 746  
Weighted-Average Common Shares Outstanding:
Basic 1,333 1,347
Diluted   1,344     1,362  
Earnings Per Common Shares Outstanding:
Basic $ .69 $ .55
Diluted   $ .69     $ .55  
 
 
THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)
       
    2019   2018
vs.   vs. First   Fourth   Third   Second   First
(In millions, except per share amounts and as noted) Q1-18 Q4-18   Quarter   Quarter   Quarter   Quarter   Quarter
Net Revenues
Net interest revenue 33 % 3 % $ 1,681 $ 1,626 $ 1,527 $ 1,407 $ 1,263
Asset management and administration fees (11 )% 755 755 809 814 851
Trading revenue (8 )% (10 )% 185 206 176 180 201
Other 23 % 24 %   102     82     67     85     83  
Total net revenues 14 % 2 %   2,723     2,669     2,579     2,486     2,398  
Expenses Excluding Interest
Compensation and benefits 10 % 6 % 850 805 737 745 770
Professional services 9 % (4 )% 170 178 164 156 156
Occupancy and equipment 7 % 2 % 131 128 124 122 122
Advertising and market development (5 )% (26 )% 69 93 70 77 73
Communications (2 )% 62 63 59 58 62
Depreciation and amortization 14 % 4 % 83 80 78 75 73
Regulatory fees and assessments (37 )% 3 % 32 31 57 50 51
Other (30 )% (23 )%   62     81     71     72     89  
Total expenses excluding interest 5 %   1,459     1,459     1,360     1,355     1,396  
Income before taxes on income 26 % 4 % 1,264 1,210 1,219 1,131 1,002
Taxes on income 37 % 9 %   300     275     296     265     219  
Net Income 23 % 3 %   $ 964     $ 935     $ 923     $ 866     $ 783  
Preferred stock dividends and other 5 % (22 )%   39     50     38     53     37  
Net Income Available to Common Stockholders 24 % 5 %   $ 925     $ 885     $ 885     $ 813     $ 746  
Earnings per common share:
Basic 25 % 5 % $ .69 $ .66 $ .66 $ .60 $ .55
Diluted 25 % 6 % $ .69 $ .65 $ .65 $ .60 $ .55
Dividends declared per common share 70 % 31 % $ .17 $ .13 $ .13 $ .10 $ .10
Weighted-average common shares outstanding:
Basic (1 )% (1 )% 1,333 1,343 1,351 1,350 1,347
Diluted (1 )% (1 )%   1,344     1,354     1,364     1,364     1,362  
Performance Measures
Pre-tax profit margin 46.4 % 45.3 % 47.3 % 45.5 % 41.8 %
Return on average common stockholders’ equity (annualized) (1)   20 %   20 %   20 %   19 %   18 %
Financial Condition (at quarter end, in billions)
Cash and investments segregated 9 % 2 % $ 13.9 $ 13.6 $ 8.5 $ 11.0 $ 12.8
Receivables from brokerage clients — net (3 )% (6 )% 20.5 21.7 22.4 22.4 21.2
Bank loans — net 1 % (1 )% 16.5 16.6 16.6 16.6 16.4
Total assets 14 % (5 )% 282.8 296.5 272.1 261.9 248.3
Bank deposits 15 % (5 )% 219.5 231.4 213.4 199.9 190.2
Payables to brokerage clients (5 )% (9 )% 29.7 32.7 27.9 30.3 31.1
Long-term debt 66 % (1 )% 6.8 6.9 5.8 5.8 4.1
Stockholders’ equity 12 % 4 %   21.6     20.7     20.8     20.1     19.3  
Other
Full-time equivalent employees (at quarter end, in thousands) 10 % 3 % 20.0 19.5 19.1 18.7 18.2
Capital expenditures — purchases of equipment, office facilities, and
property, net (in millions)
34 % 14 % $ 181 $ 159 $ 156 $ 126 $ 135
Expenses excluding interest as a percentage of average client assets
(annualized)
  0.17 %   0.17 %   0.15 %   0.16 %   0.17 %
Clients’ Daily Average Trades (in thousands)
Revenue trades (2) (10 )% (10 )% 418 466 382 376 462
Asset-based trades (3) 7 % (21 )% 149 188 129 149 139
Other trades (4) (1 )%   210     213     172     179     211  
Total (4 )% (10 )%   777     867     683     704     812  
Average Revenue Per Revenue Trade (2) (1 )% 1 %   $ 7.19     $ 7.13     $ 7.27     $ 7.30     $ 7.24  
         
(1)   Return on average common stockholders’ equity is calculated using net income available to common stockholders divided by average common stockholders’ equity.
(2) Includes all client trades that generate trading revenue (i.e., commission revenue or principal transaction revenue); also known as DART.
(3) Includes eligible trades executed by clients who participate in one or more of the company’s asset-based pricing relationships.
(4) Includes all commission-free trades, including Schwab Mutual Fund OneSource® funds and ETFs, and other proprietary products.
 

THE CHARLES SCHWAB CORPORATION

Net Interest Revenue Information

(In millions)

(Unaudited)

 
  Three Months Ended
    March 31,
2019     2018
  Interest   Average   Interest   Average
Average Revenue/ Yield/ Average Revenue/ Yield/
    Balance   Expense   Rate     Balance   Expense   Rate
Interest-earning assets
Cash and cash equivalents $ 24,983 $ 151 2.42 % $ 17,084 $ 66 1.53 %
Cash and investments segregated 13,533 83 2.44 % 13,969 48 1.37 %
Broker-related receivables 257 2 2.75 % 287 1 1.32 %
Receivables from brokerage clients 18,972 214 4.52 % 18,872 179 3.79 %
Available for sale securities (1) 66,853 451 2.70 % 50,371 240 1.91 %
Held to maturity securities 132,427 916 2.77 % 121,412 721 2.38 %
Bank loans   16,578     149     3.61 %     16,456     130     3.19 %
Total interest-earning assets   273,603     1,966     2.88 %     238,451     1,385     2.33 %
Other interest revenue       32               36      
Total interest-earning assets   $ 273,603     $ 1,998     2.92 %     $ 238,451     $ 1,421     2.39 %
Funding sources
Bank deposits $ 219,987 $ 226 0.42 % $ 176,988 $ 64 0.15 %
Payables to brokerage clients 22,184 23 0.43 % 22,469 7 0.14 %
Short-term borrowings (2) 30 2.48 % 12,170 47 1.55 %
Long-term debt   6,845     62     3.61 %     4,392     37     3.37 %
Total interest-bearing liabilities   249,046     311     0.51 %     216,019     155     0.29 %
Non-interest-bearing funding sources 24,557 22,432
Other interest expense       6               3      
Total funding sources   $ 273,603     $ 317     0.46 %     $ 238,451     $ 158     0.27 %
Net interest revenue       $ 1,681     2.46 %         $ 1,263     2.12 %
(1)   Amounts have been calculated based on amortized cost.
(2) Interest expense was less than $500,000 in the period presented.
 

THE CHARLES SCHWAB CORPORATION

Asset Management and Administration Fees Information

(In millions)

(Unaudited)

 
  Three Months Ended
March 31,
2019     2018
Average     Average    
Client Average Client Average
    Assets   Revenue   Fee     Assets   Revenue   Fee
Schwab money market funds $ 158,268 $ 122 0.31 % $ 156,362 $ 182 0.47 %
Schwab equity and bond funds, ETFs, and collective trust funds (CTFs) (1) 244,314 70 0.12 % 212,519 74 0.14 %
Mutual Fund OneSource® and other non-transaction fee funds 187,223 147 0.32 % 222,669 178 0.32 %
Other third-party mutual funds and ETFs (2)   452,461     75     0.07 %     319,722     70     0.09 %
Total mutual funds, ETFs, and CTFs (3)   $ 1,042,266     414     0.16 %     $ 911,272     504     0.22 %
Advice solutions (3)
Fee-based $ 230,394 278 0.49 % $ 224,760 282 0.51 %
Non-fee-based   66,756               59,762          
Total advice solutions   $ 297,150     278     0.38 %     $ 284,522     282     0.40 %
Other balance-based fees (1,4) 392,191 52 0.05 % 410,443 55 0.05 %
Other (5)       11               10      
Total asset management and administration fees       $ 755               $ 851      
(1)   Beginning in the first quarter of 2019, a change was made to move CTFs from other balance-based fees. Prior periods have been recast to reflect this change.
(2) Includes Schwab ETF OneSourceTM.
(3) Advice solutions include managed portfolios, specialized strategies, and customized investment advice such as Schwab Private ClientTM, Schwab Managed PortfoliosTM, Managed Account Select®, Schwab Advisor Network®, Windhaven® Strategies, ThomasPartners® Strategies, Schwab Index Advantage® advised retirement plan balances, Schwab Intelligent Portfolios®, Institutional Intelligent Portfolios®, and Schwab Intelligent Portfolios PremiumTM; as well as legacy non-fee advice solutions including Schwab Advisor Source and certain retirement plan balances. Average client assets for advice solutions may also include the asset balances contained in the mutual fund and/or ETF categories listed above. For the total end of period view, please see the Monthly Activity Report.
(4) Includes various asset-related fees, such as trust fees, 401(k) recordkeeping fees, and mutual fund clearing fees and other service fees.
(5) Includes miscellaneous service and transaction fees relating to mutual funds and ETFs that are not balance-based.
 
 

THE CHARLES SCHWAB CORPORATION

Growth in Client Assets and Accounts

(Unaudited)

       
    2019   2018
vs.   vs. First   Fourth   Third   Second   First
(In billions, at quarter end, except as noted) Q1-18 Q4-18   Quarter   Quarter   Quarter   Quarter   Quarter
Assets in client accounts
Schwab One®, certain cash equivalents and bank deposits 13 % (5 )% $ 247.0 $ 261.2 $ 239.5 $ 228.2 $ 219.4
Proprietary mutual funds (Schwab Funds® and Laudus Funds®) and CTFs
Money market funds (1) 10 % 4 % 159.7 153.5 128.5 134.2 145.0
Equity and bond funds and CTFs (2,3) 8 % 13 %   106.2     94.3     107.4     102.1     98.7  
Total proprietary mutual funds and CTFs 9 % 7 %   265.9     247.8     235.9     236.3     243.7  
Mutual Fund Marketplace® (4)
Mutual Fund OneSource® and other non-transaction fee funds (12 )% 8 % 195.1 180.5 212.6 212.5 221.6
Mutual fund clearing services 2 % 11 % 182.7 164.4 182.2 175.3 178.3
Other third-party mutual funds 6 % 13 %   737.2     650.4     740.1     716.1     693.4  
Total Mutual Fund Marketplace 2 % 12 %   1,115.0     995.3     1,134.9     1,103.9     1,093.3  
Total mutual fund assets 3 % 11 %   1,380.9     1,243.1     1,370.8     1,340.2     1,337.0  
Exchange-traded funds (ETFs)
Proprietary ETFs (3) 29 % 17 % 134.7 115.2 125.2 114.8 104.5
Schwab ETF OneSource™ (4) 177 % 170 % 82.5 30.6 33.3 30.8 29.8
Other third-party ETFs (3 )% (2 )%   303.7     309.9     338.6     322.1     314.7  
Total ETF assets 16 % 14 %   520.9     455.7     497.1     467.7     449.0  
Equity and other securities (2) 7 % 13 % 1,131.3 1,005.4 1,186.7 1,106.2 1,060.6
Fixed income securities 25 % 6 % 324.1 306.1 290.4 275.1 258.8
Margin loans outstanding (3 )% (3 )%   (18.8 )   (19.3 )   (20.8 )   (20.4 )   (19.4 )
Total client assets 8 % 10 %   $ 3,585.4     $ 3,252.2     $ 3,563.7     $ 3,397.0     $ 3,305.4  
Client assets by business
Investor Services 8 % 11 % $ 1,886.7 $ 1,701.7 $ 1,876.9 $ 1,784.8 $ 1,740.8
Advisor Services 9 % 10 %   1,698.7     1,550.5     1,686.8     1,612.2     1,564.6  
Total client assets 8 % 10 %   $ 3,585.4     $ 3,252.2     $ 3,563.7     $ 3,397.0     $ 3,305.4  
Net growth in assets in client accounts (for the quarter ended)
Net new assets by business
Investor Services (5) N/M 2 % $ 29.2 $ 28.7 $ 27.8 $ 13.7 $ (50.8 )
Advisor Services (30 )% (15 )%   22.5     26.6     25.7     30.2     32.0  
Total net new assets N/M (7 )%   $ 51.7     $ 55.3     $ 53.5     $ 43.9     $ (18.8 )
Net market gains (losses) N/M N/M   281.5     (366.8 )   113.2     47.7     (37.6 )
Net growth (decline) N/M N/M   $ 333.2     $ (311.5 )   $ 166.7     $ 91.6     $ (56.4 )
New brokerage accounts (in thousands, for the quarter ended) (13 )% 2 % 386 380 369 384 443
Client accounts (in thousands)
Active brokerage accounts (6) 7 % 2 % 11,787 11,593 11,423 11,202 11,005
Banking accounts 6 % 1,300 1,302 1,283 1,250 1,221
Corporate retirement plan participants 6 % 2 %   1,684     1,655     1,627     1,599     1,594  
         
(1)  

Total client assets in purchased money market funds are located at: https://www.aboutschwab.com/investor-relations .

(2) Beginning in the first quarter of 2019, a change was made to move CTFs from equity and other securities. Prior periods have been recast to reflect this change.
(3) Includes balances held on and off the Schwab platform. As of March 31, 2019, off-platform equity and bond funds, CTFs, and ETFs were $11.8 billion, $4.4 billion, and $36.3 billion, respectively.
(4) Excludes all proprietary mutual funds and ETFs.
(5) Second quarter of 2018 includes outflows of $9.5 billion from certain mutual fund clearing services clients. First quarter of 2018 includes outflows of $84.4 billion from certain mutual fund clearing services clients.
(6) In September 2018, the definition of active brokerage accounts was standardized across all account types as accounts with activity within the preceding 270 days. This change increased active accounts by approximately 63,000.

N/M Not meaningful.

 

The Charles Schwab Corporation Monthly Activity Report For March 2019

 
  2018                     2019        

 

Market Indices (at month end)
Dow Jones Industrial Average 24,103 24,163 24,416 24,271 25,415 25,965 26,458 25,116 25,538 23,327 25,000 25,916 25,929 8 %
Nasdaq Composite 7,063 7,066 7,442 7,510 7,672 8,110 8,046 7,306 7,331 6,635 7,282 7,533 7,729 3 % 9 %
Standard & Poor’s 500 2,641 2,648 2,705 2,718 2,816 2,902 2,914 2,712 2,760 2,507 2,704 2,784 2,834 2 % 7 %
Client Assets (in billions of dollars)
Beginning Client Assets 3,328.8 3,305.4 3,312.1 3,378.1 3,397.0 3,447.9 3,555.9 3,563.7 3,388.1 3,431.9 3,252.2 3,447.7 3,533.0
Net New Assets (1) 20.2 0.4 19.4 24.1 16.3 20.8 16.4 14.9 15.6 24.8 15.1 18.3 18.3 (9 )%
Net Market Gains (Losses) (43.6 )   6.3     46.6     (5.2 )   64.6     57.2     (8.6 )   (190.5 )   28.2     (204.5 )   180.4     67.0   34.1
Total Client Assets (at month end) 3,305.4     3,312.1     3,378.1     3,397.0     3,477.9     3,555.9     3,563.7     3,388.1     3,431.9     3,252.2     3,447.7     3,533.0   3,585.4 1 % 8 %
Core Net New Assets (2) 25.6 9.9 19.4 24.1 16.3 20.8 16.4 14.9 15.6 24.8 15.1 18.3 18.3 (29 )%
Receiving Ongoing Advisory Services (at month end)
Investor Services 273.2 274.7 279.1 280.0 287.0 292.0 292.7 280.3 284.7 272.4 286.9 294.2 298.4 1 % 9 %
Advisor Services (3) 1,444.4 1,451.6 1,478.0 1,488.7 1,525.5 1,555.3 1,559.2 1,485.8 1,510.1 1,436.1 1,514.2 1,551.6 1,572.8 1 % 9 %
Client Accounts (at month end, in thousands)
Active Brokerage Accounts (4) 11,005 11,081 11,145 11,202 11,243 11,310 11,423 11,479 11,529 11,593 11,653 11,712 11,787 1 % 7 %
Banking Accounts (5) 1,221 1,230 1,240 1,250 1,262 1,274 1,283 1,289 1,297 1,302 1,312 1,313 1,300 (1 )% 6 %
Corporate Retirement Plan Participants 1,594 1,599 1,599 1,599 1,611 1,621 1,627 1,634 1,639 1,655 1,679 1,685 1,684 6 %
Client Activity
New Brokerage Accounts (in thousands) 140 141 122 121 118 132 119 133 115 132 131 115 140 22 %
Inbound Calls (in thousands) 2,145 2,034 1,852 1,814 1,849 1,964 1,715 1,976 1,681 1,839 1,924 1,742 1,882 8 % (12 )%
Web Logins (in thousands) 58,906 55,980 56,234 56,491 57,137 62,797 53,923 59,261 54,654 53,920 64,563 60,121 63,692 6 % 8 %
Client Cash as a Percentage of Client Assets (6) 11.0 % 10.9 % 10.6 % 10.7 % 10.5 % 10.4 % 10.3 % 11.1 % 11.2 % 12.8 % 11.7 % 11.5 % 11.3 % (20) bp 30 bp

Mutual Fund and Exchange-Traded Fund Net Buys (Sells) (7, 8) (in millions of dollars)

Large Capitalization Stock (158 ) 410 953 981 486 918 311 308 331 717 1,343 1,109 1,045
Small / Mid Capitalization Stock 130 359 753 1,195 768 (186 ) 151 (1,344 ) (456 ) (1,414 ) 1,329 638 302
International 1,546 809 372 (498 ) (529 ) 186 (88 ) (109 ) (418 ) (2,163 ) 2,212 1,086 1,274
Specialized 326 122 (19 ) 383 520 (245 ) 73 (914 ) (397 ) (2,105 ) 124 609 750
Hybrid 529 (541 ) (241 ) (288 ) (548 ) (678 ) (324 ) (1,313 ) (1,248 ) (2,985 ) (321 ) (309 ) (357 )
Taxable Bond 2,117 1,661 1,002 928 879 965 1,371 (351 ) (836 ) (4,342 ) 3,956 2,871 1,923
Tax-Free Bond 247 (113 ) 449 588 306 559 262 (591 ) (407 ) (409 ) 1,184 1,111 1,133
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (7) 1,976 (36 ) (88 ) 555 (522 ) (1,936 ) (1,538 ) (5,734 ) (7,955 ) (21,372 ) 6,740 2,312 1,850
Exchange-Traded Funds (8) 2,761 2,743 3,357 2,734 2,404 3,455 3,294 1,420 4,524 8,671 3,087 4,803 4,220
Money Market Funds (9,100 ) (4,156 ) (2,245 ) (4,919 ) (4,801 ) 704 (1,933 ) 2,546 8,515 13,548 4,944 (1,577 ) 1,785

Average Interest-Earning Assets (9) (in millions of dollars)

  241,049   239,833   242,584   249,432   254,211   259,137   261,741   264,156   265,648   274,913   277,068   270,718   272,727     1 %   13 %
(1)   April and March 2018 include outflows of $9.5 billion and $5.4 billion, respectively, from certain mutual fund clearing services clients.
(2) Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $10 billion) relating to a specific client. These flows may span multiple reporting periods.
(3) Excludes Retirement Business Services.
(4) In September 2018, the definition of active brokerage accounts was standardized across all account types as accounts with activity within the preceding 270 days. This change increased active accounts by approximately 63,000.
(5) In March 2019, banking accounts were reduced by approximately 23,000 as a result of inactive account closures.
(6) Schwab One®, certain cash equivalents, bank deposits, and money market fund balances as a percentage of total client assets.
(7) Represents the principal value of client mutual fund transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to Investment Managers. Excludes money market fund transactions.
(8) Represents the principal value of client ETF transactions handled by Schwab, including transactions in proprietary ETFs.
(9) Represents average total interest-earning assets on the company’s balance sheet.

MEDIA:
Mayura Hooper
Charles Schwab
Phone: 415-667-1525

INVESTORS/ANALYSTS:
Rich Fowler
Charles Schwab
Phone: 415-667-1841

Source: The Charles Schwab Corporation



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