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 Schwab Fourth Quarter Net Income of $597 Million Caps Record Year
   Wednesday, January 17, 2018 8:45:00 AM ET

--Core Net New Assets Rise 58% to a Record $198.6 Billion for the Year

The Charles Schwab Corporation announced today that its net income for the fourth quarter of 2017 was $597 million, up 14% from $522 million for the fourth quarter of 2016. Net income for the twelve months ended December 31, 2017 was nearly $2.4 billion, up 25% year-over-year. The company’s financial results for the fourth quarter and full-year 2017 were impacted by the tax reform legislation signed in December a^’ a one-time tax expense of approximately $46 million decreased earnings per share by $0.03.

This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180117005476/en/

                                                                                                                                                                                   
                                                                                                       Three Months Ended                                        %                                       Twelve Months Ended                                              %
                                                                                                          December 31,                                                                                      December 31,
Financial Highlights                                                      2017 (1)            2016   Change        2017 (1)        2016 (2)          Change
------------------------------------------------------------------ -------------------- ---------------------------------- ---------------------------------- ------ -------------------- ---------------------------------- ---------------------------------- --------------------
                                                                                                                                                                                      
   Net revenues (in millions)                                                             $ 2,242                            $ 1,972                             14%                        $ 8,618                            $ 7,478                                           15%
   Net income (in millions)                                                               $   597                            $   522                             14%                        $ 2,354                            $ 1,889                                           25%
   Diluted earnings per common share                                                      $   .41                            $   .36                             14%                        $  1.61                            $  1.31                                           23%
   Pre-tax profit margin                                                                     42.5   %                           41.8   %                                                       42.4   %                           40.0   %
   Return on average common
      stockholders’ equity (annualized)                             14   %                             14   %                                                         15   %                             14   %
                                                                                                                                                                                                                                                                 
Note: All per-share results are rounded to the nearest cent, based
on weighted-average diluted common shares outstanding.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(1)    Effective January 1, 2017, a new accounting standard prospectively
                          changed the treatment of a portion of the tax deductions relating to
                          equity compensation. These deductions were previously reflected in
                          additional paid-in capital, a component of stockholders’ equity, and
                          are now included in taxes on income, a component of net income. The
                          company’s tax expense for the fourth quarter and full year 2017
                          decreased by approximately $40 million and $87 million,
                          respectively, as a result of this change. Future effects will depend
                          on the company’s share price, restricted stock vesting, and the
                          volume of equity incentive options exercised.
(2)                       Reflects net litigation proceeds of $16 million in 2016, relating to
                          the company’s non-agency residential mortgage-backed securities
                          (RMBS) portfolio, which are included in Other revenue.


CEO Walt Bettinger said, "Our steady focus on operating ’through clients’ eyes’ has been a driving force in helping Schwab achieve another record year. In 2017, clients opened 1.4 million accounts, and households new to Schwab’s Retail business rose by 49% versus 2016; 54% of these households were age 40 or younger. In addition, clients trusted Schwab with a record $198.6 billion of core net new assets, up 58% from 2016 and marking a 7% organic growth rate. Both of our primary businesses attracted record inflows, with Retail and Advisor Services net new assets rising 57% and 59%, respectively, year-over-year. This impressive asset gathering was helped by a 75% increase in net transfers of assets from other firms, reflecting our strengthened competitive position. Our success with clients was bolstered by strength in the equity markets a^’ the S&P 500(R) Index finished 2017 up 19%. In this environment, investor sentiment reached highs not seen in almost two decades, and clients actively engaged in the markets."

Mr. Bettinger continued, "With a second straight top ranking in J.D. Power’s U.S. Full-Service Investor Satisfaction Survey*, we believe that the range of planning and advice solutions available through our modern approach to wealth management continues to resonate with clients. Assets enrolled in one of our retail or other advisory solutions continued to grow faster than client assets overall, reaching a record $268.7 billion at year-end, up 24%. In addition, our digital advisory solutions (Schwab Intelligent Portfolios(R), Institutional Intelligent Portfolios(R), and Schwab Intelligent Advisory(R)) have surpassed $27 billion in client assets with 223,000 active accounts. Total client assets as of December 31st were a record $3.36 trillion, up 21% year-over-year. We ended 2017 serving 10.8 million active brokerage accounts, 1.2 million banking accounts, and 1.6 million retirement plan participants."

Mr. Bettinger noted, "In 2017, we continued to build Schwab through our ’Virtuous Cycle’ approach: we challenged the status quo to benefit investors, resulting in clients entrusting us with record assets, which helped lead to record financial results. We achieved record annual net revenues for the fifth straight year, reaching $8.6 billion, up 15% from 2016. At the same time, we increased project spending, hired more client-facing employees, and made ongoing investments to support the growth we’ve achieved and to help meet client service expectations. By once again effectively balancing near-term profitability and reinvestment for long-term growth, we were able to deliver a fourth consecutive year of record net income, up 25% to almost $2.4 billion. We recognize that these results are made possible by our employees’ passion for serving our clients every day, and in the fourth quarter we rewarded about 9,000 of our non-executive staff with a one-time ’Through Clients’ Eyes’ award, totaling $9 million overall."

Mr. Bettinger added, "When Chuck Schwab started the company over 40 years ago, he sought to level the playing field for all investors. Last year, we continued to deliver on that vision by pursuing our goal of a ’no trade-offs’ combination of value, service, transparency, and trust. We shared the benefits of scale with our clients by announcing nearly $400 million in annualized price reductions. In February, we lowered equity and options trade commissions from $8.95 to $4.95 and dropped the per contract option fee to $0.65. We also reduced the operating expense ratios on our market cap-weighted index mutual funds to align with their ETF equivalents. Additionally and perhaps more importantly, we eliminated investment minimums and multiple share classes for both fundamental and market cap-weighted index funds, offering our best pricing to every investor, from the smallest to the largest. At the same time, we introduced a broad-reaching Satisfaction Guarantee, unique for our industry.** In the fourth quarter, we streamlined share classes and decreased operating expense ratios on our money market funds, enhancing the net yields available to our clients. Also during the year, we started an industry-first national advertising campaign on behalf of the RIAs that we serve and we rolled-out Schwab Advisor StreetSmart Edge(R), providing advisors with streaming of real-time quotes, advanced charting, and additional trading capabilities. We continued to enhance our product offerings during 2017, adding 34 ETFs to Schwab ETF OneSource(TM) - investors and advisors can now buy and sell 242 ETFs covering 69 Morningstar categories. Later in the year we initiated the Schwab 1000 Index(R) ETF - a new low-cost way to gain exposure to America’s largest 1,000 stocks. Additionally, we launched three index mutual funds: Schwab(R) U.S. Large-Cap Value Index Fund, Schwab(R) U.S. Large-Cap Growth Index Fund, and Schwab(R) U.S. Mid-Cap Index Fund. On the technology front, we released a new account summary page, allowing clients to aggregate their non-Schwab account information on Schwab.com and enabling a more holistic view of their finances. We are proud of the progress we made in 2017, humbled by our clients’ response, and committed to sustaining Chuck’s vision in everything we do."

CFO Peter Crawford commented, "Schwab’s record 2017 financial results demonstrate the power of our financial formula working as designed: our robust business growth supported strong revenue growth through multiple sources, which we combined with continued expense discipline to drive significantly improved profitability. As Walt described, our success with clients and a favorable environment resulted in a 21% increase in client assets. We turned this growth into a 15% lift in revenues through record contributions from our two largest revenue sources. Net interest revenue rose 29% to $4.3 billion due to rising interest rates as well as growing client cash balances. Asset management and administration fees reached a record $3.4 billion, up 11% from 2016, driven by growing balances in advised solutions, mutual funds, and ETFs. These increases more than offset the 21% decline in trading revenue resulting from our pricing actions. Turning to expenses, our 11% year-over-year rise was consistent with expectations and included higher Compensation due to added staffing and incentive costs relating to our strong asset gathering, as well as higher Professional services outlays relating to project spending and third-party fees tied to higher balances in our asset management business. Through our continued expense discipline we achieved a 440 basis point gap between revenue and expense growth, resulting in a record 42.4% pre-tax profit margin, a 240 basis point expansion over last year."

Mr. Crawford concluded, "Effective balance sheet management remains core to supporting our success and our 2017 return on equity was 15%, the highest since 2009. Throughout last year, we were mindful of approaching the $250 billion consolidated asset threshold and the related implications for heightened regulatory requirements. As we aimed for crossing the threshold in 2018, we limited bulk transfers of sweep balances from money market funds to Schwab Bank - which help us more effectively optimize the spread earned on client cash - to $2.0 billion, including approximately $1.1 billion in the fourth quarter. We also transferred $2.9 billion of Schwab One(R) sweep balances, which were already on our balance sheet, to the Bank, including $400 million in the fourth quarter. Another part of managing our approach to $250 billion involved the utilization of Federal Home Loan Bank advances to provide temporary funding for Bank portfolio investments that will eventually be supported by bulk transfers. These borrowings, which totaled $15 billion at year-end, enabled us to strengthen net interest revenue by getting a head-start on anticipated 2018 bulk transfers while controlling our approach to the threshold. We also worked to improve our capital mix by replacing $485 million of 6% preferred shares with a lower rate preferred offering, and by issuing $1.5 billion of senior notes in advance of debt maturing in 2018 and to support continued business growth. By month-end December, our consolidated balance sheet reached $243 billion and our preliminary Tier 1 Leverage Ratio was 7.6%. We ended the year poised to cross the $250 billion consolidated asset threshold during the first half of 2018 as we continue to drive strong balance sheet growth through a combination of asset gathering and bulk transfers."

Business highlights for the fourth quarter (data as of quarter-end unless otherwise noted):

Investor Services

-- New retail brokerage accounts for the quarter totaled approximately 248,000, up 36% year-over-year; total accounts were 7.4 million, up 4% year-over-year.

-- Opened one independent branch in Germantown, WI, to bring the total to 40, continuing the company’s franchising initiative designed to make financial advice more accessible.

Advisor Services

-- Hosted 4,900 advisors, exhibitors, sponsors, and media at our IMPACT(R) conference - the largest and longest-running annual gathering of independent registered investment advisors.

-- Expanded Schwab OpenView Gateway(R), the open architecture platform that enables integration between Schwab systems and technology providers, by adding eMoney for financial planning and Addepar for portfolio management.

Products and Infrastructure

-- Launched new StreetSmart Central(TM) and StreetSmart Mobile(TM) Trading Platforms, marking the full integration of optionsXpress(R) technology within Schwab.

-- For Charles Schwab Bank: -- Balance sheet assets = $198.6 billion, up 13% year-over-year.

-- Outstanding mortgage and home equity loans = $12.0 billion, up 4% year-over-year.

-- Pledged Asset Line(R) balances = $4.4 billion, up 13% year-over-year.

-- Schwab Bank High Yield Investor Checking(R) accounts = 1.0 million, with $13.4 billion in balances.

-- Client assets managed by Windhaven(R) totaled $8.1 billion, down 10% from the fourth quarter of 2016.

-- Client assets managed by ThomasPartners(R) totaled $14.6 billion, up 43% from the fourth quarter of 2016.

-- Client assets managed by one of the company’s digital advisory solutions (Schwab Intelligent Portfolios(R), Institutional Intelligent Portfolios(R), and Schwab Intelligent Advisory(R)) totaled $27.3 billion, up 122% from the fourth quarter of 2016.

Supporting schedules are either attached or located at: http://www.aboutschwab.com/investor-relations/financial-reports .

*Charles Schwab received the highest numerical score in the J.D. Power 2016 and 2017 Full Service Investor Satisfaction Studies, based on 6,006 responses from 20 firms measuring opinions of investors who used full-service investment institutions and were surveyed in January 2016 and 6,579 responses from 20 firms measuring opinions of investors who used full-service investment institutions and were surveyed in January 2017. Your experiences may vary. Visit jdpower.com.

**Restrictions apply: The $4.95 commission does not apply to certain transactions. All broker-assisted and automated phone trades are subject to service charges. See the Charles Schwab Pricing Guide for Individual Investors for full fee and commission schedules. If you are not completely satisfied for any reason, at your request Charles Schwab & Co., Inc. will refund any eligible fee related to your concern within the time frames described below. Two kinds of "Fees" are eligible for this guarantee: (1) asset-based "Program Fees" for certain investment advisory services sponsored by Schwab; and (2) commissions and fees listed in the Charles Schwab Pricing Guide for Individual Investors ("Account Fees"). Program Fee refund requests must be received no later than the next calendar quarter after the Fee was charged. Account Fee refund requests must be received within one year of the date that the Fee was charged.

Commentary from the CFO

Periodically, our Chief Financial Officer provides insight and commentary regarding Schwab’s financial picture at: http://www.aboutschwab.com/investor-relations/cfo-commentary . The most recent commentary, which discusses the impact of tax reform legislation, was posted on December 22, 2017.

Business Update

The company has scheduled a Business Update for institutional investors on Tuesday, February 6, 2018. The Update is scheduled to run from approximately 8:30 a.m. - 12:15 p.m. PT, 11:30 a.m. - 3:15 p.m. ET. Participants will include members of the company’s executive management. A simultaneous webcast of this Update will be accessible to the public at http://schwabevents.com/corporation .

Forward-Looking Statements

This press release contains forward-looking statements relating to the company’s business growth; crossing the $250 billion asset threshold; balance sheet growth; asset gathering; and bulk transfers. 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, the company’s ability to attract and retain clients and registered investment advisors and grow those relationships and client assets; general market conditions, including the level of interest rates and equity valuations; competitive pressures on pricing, including deposit rates; the company’s ability to develop and launch new products, services and capabilities in a timely and successful manner; client use of the company’s investment advisory services and other products and services; the timing and amount of bulk transfers; the quality of the company’s balance sheet assets; client sensitivity to interest rates; regulatory guidance; and other factors set forth in the company’s most recent reports on Form 10-K and Form 10-Q.

About Charles Schwab

The Charles Schwab Corporation (SCHW ) is a leading provider of financial services, with more than 345 offices and 10.8 million active brokerage accounts, 1.6 million corporate retirement plan participants, 1.2 million banking accounts, and $3.36 trillion in client assets as of December 31, 2017. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, money management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, http://www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at www.schwab.com and www.aboutschwab.com.

 
                                                                                                                           THE CHARLES SCHWAB CORPORATION
                                                                                                                          Consolidated Statements of Income
                                                                                                                       (In millions, except per share amounts)
                                                                                                                                     (Unaudited)
                                                                                                                                                     
                                                                                                              Three Months Ended                                                                                               Twelve Months Ended
                                                                                                                 December 31,                                                                                                     December 31,
                                                  2017                                   2016                                   2017                                2016
-------------------------------------------------- -------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- ------------------------------
Net Revenues                                                                                                                                                                                                   
         Interest revenue                                                     $   1,266                                                 $     952                                                 $   4,624                                            $ 3,493
         Interest expense                                                          (119 )                                                     (45 )                                                    (342 )                                             (171 )
                                                                        ------------------------------------                      ------------------------------------                      ------------------------------------                      -----------------------------
     Net interest revenue                                                         1,147                                                       907                                                     4,282                                              3,322
      Asset management and administration fees (1)                                  863                                                       801                                                     3,392                                              3,055
     Trading revenue                                                                154                                                       202                                                       654                                                825
     Other                                                                           78                                                        62                                                       290                                                271
     Provision for loan losses                        --      --      --            5  
-------------------------------------------------- -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- -----------------------------
          Total net revenues                                   2,242               1,972               8,618        7,478  
-------------------------------------------------- -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- -----------------------------
Expenses Excluding Interest
      Compensation and benefits                                                     711                                                       629                                                     2,737                                              2,466
      Professional services                                                         151                                                       134                                                       580                                                506
      Occupancy and equipment                                                       113                                                        99                                                       436                                                398
      Advertising and market development                                             63                                                        61                                                       268                                                265
      Communications                                                                 60                                                        58                                                       231                                                237
      Depreciation and amortization                                                  69                                                        61                                                       269                                                234
Regulatory fees and assessments                                                      46                                                        42                                                       179                                                144
      Other                                                       76                  64                 268          235  
-------------------------------------------------- -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- -----------------------------
          Total expenses excluding interest                    1,289               1,148               4,968        4,485  
-------------------------------------------------- -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- -----------------------------
Income before taxes on income                                                       953                                                       824                                                     3,650                                              2,993
Taxes on income (2)                                              356                 302               1,296        1,104  
-------------------------------------------------- -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- -----------------------------
Net Income                                                       597                 522               2,354        1,889  
-------------------------------------------------- -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- -----------------------------
Preferred stock dividends and other (3)                           47                  44                 174          143  
-------------------------------------------------- -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- -----------------------------
Net Income Available to Common Stockholders                $     550           $     478           $   2,180      $ 1,746  
================================================== ==================== ======= ======= ==================== ==================== ======= ======= ==================== ==================== ======= ======= ==================== ==================== == ===== ====================
Weighted-Average Common Shares Outstanding:
      Basic                                                                       1,343                                                     1,329                                                     1,339                                              1,324
      Diluted                                                  1,358               1,341               1,353        1,334  
-------------------------------------------------- -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- -----------------------------
Earnings Per Common Shares Outstanding:
      Basic                                                                   $     .41                                                 $     .36                                                 $    1.63                                            $  1.32
      Diluted                                              $     .41           $     .36           $    1.61      $  1.31  
-------------------------------------------------- -------------------- ------- ------- -------------------- -------------------- ------- ------- -------------------- -------------------- ------- ------- -------------------- -------------------- -- ----- --------------------
Dividends Declared Per Common Share                        $     .08           $     .07           $     .32      $   .27  
-------------------------------------------------- -------------------- ------- ------- -------------------- -------------------- ------- ------- -------------------- -------------------- ------- ------- -------------------- -------------------- -- ----- --------------------
(1)   Includes fee waivers of $0 million and $31 million during the fourth
                         quarters of 2017 and 2016, respectively, and $10 million and $224
                         million during the twelve months ended December 31, 2017 and 2016,
                         respectively, relating to Schwab-sponsored money market funds.
(2)                      Taxes on income were reduced by approximately $40 million and $87
                         million for the three and twelve months ended December 31, 2017 to
                         reflect the required adoption of Accounting Standards Update
                         2016-09, which changes the accounting treatment of a portion of the
                         tax deductions relating to equity compensation. Taxes on income were
                         also increased by approximately $46 million in December 2017 due to
                         the enactment of the Tax Cuts and Jobs Act legislation resulting in
                         the remeasurement of deferred tax assets and other tax adjustments.
(3)                      Includes preferred stock dividends and undistributed earnings and
                         dividends allocated to non-vested restricted stock units.
 
                                                                                                                                                                                                                                     THE CHARLES SCHWAB CORPORATION
                                                                                                                                                                                                                                     Financial and Operating Highlights
                                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                     ---------------------------------------------------------------------------------------------------------
                                                                                                                                               Q4-17 % change                                                                                                                                                                            2017                                                                                                                          2016
-----------------------------------------------------------------------------------------------                      ----------------------------------------------------------------------------------------------------                          -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------               -------------------- ----------------------------------
                                                                                                                                         vs.                                         vs.                                                                            Fourth                                  Third                                 Second                                  First                                                    Fourth
(In millions, except per share amounts and as noted)                                                                                    Q4-16                                                          Q3-17                                                        Quarter                                Quarter                                Quarter                                Quarter                                Quarter
-----------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- -------------------------------------
Net Revenues
      Net interest revenue                                                                                                             26                    %                                         6                    %                                                 $   1,147                                                 $   1,082                                                 $   1,053                                                 $   1,000                                                 $     907
      Asset management and administration fees                                                                                          8                    %                            --                                                                            863                                                       861                                                       845                                                       823                                                       801
      Trading revenue                                                                                                                 (24                   )%                                         2                    %                                                       154                                                       151                                                       157                                                       192                                                       202
      Other                                                                                                                            26                    %                                        10                    %                                                        78                                                        71                                                        75                                                        66                                                        62
      Provision for loan losses                                                                                            --                                                 --                                              --      --      --      --      --  
-----------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------
Total net revenues                                                                                                                     14                    %                                         4                    %                                  2,242               2,165               2,130               2,081               1,972  
-----------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------
Expenses Excluding Interest
      Compensation and benefits                                                                                                        13                    %                                         7                    %                                                       711                                                       662                                                       663                                                       701                                                       629
      Professional services                                                                                                            13                    %                                        (1                   )%                                                       151                                                       152                                                       144                                                       133                                                       134
      Occupancy and equipment                                                                                                          14                    %                                         2                    %                                                       113                                                       111                                                       107                                                       105                                                        99
      Advertising and market development                                                                                                3                    %                            --                                                                             63                                                        63                                                        71                                                        71                                                        61
      Communications                                                                                                                    3                    %                                         7                    %                                                        60                                                        56                                                        58                                                        57                                                        58
      Depreciation and amortization                                                                                                    13                    %                            --                                                                             69                                                        69                                                        66                                                        65                                                        61
      Regulatory fees and assessments                                                                                                  10                    %                                         7                    %                                                        46                                                        43                                                        46                                                        44                                                        42
      Other                                                                                                                            19                    %                                        19                    %                                     76                  64                  66                  62                  64  
-----------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------
Total expenses excluding interest                                                                                                      12                    %                                         6                    %                                  1,289               1,220               1,221               1,238               1,148  
-----------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------
Income before taxes on income                                                                                                          16                    %                                         1                    %                                                       953                                                       945                                                       909                                                       843                                                       824
Taxes on income                                                                                                                        18                    %                                         9                    %                                    356                 327                 334                 279                 302  
-----------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------
Net Income                                                                                                                             14                    %                                        (3                   )%                              $     597           $     618           $     575           $     564           $     522  
-----------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- ------- ------- -------------------- -------------------- ------- ------- -------------------- -------------------- ------- ------- -------------------- -------------------- ------- ------- -------------------- -------------------- ------- ------- --------------------
Preferred stock dividends and other                                                                                                     7                    %                                         9                    %                                     47                  43                  45                  39                  44  
-----------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------
Net Income Available to Common Stockholders                                                                                            15                    %                                        (4                   )%                              $     550           $     575           $     530           $     525           $     478  
===============================================================================================                                                                                                                                                    ==================== ======= ======= ==================== ==================== ======= ======= ==================== ==================== ======= ======= ==================== ==================== ======= ======= ==================== ==================== ======= ======= ====================
Earnings per common share:
      Basic                                                                                                                            14                    %                                        (5                   )%                                                 $     .41                                                 $     .43                                                 $     .40                                                 $     .39                                                 $     .36
      Diluted                                                                                                                          14                    %                                        (2                   )%                                                 $     .41                                                 $     .42                                                 $     .39                                                 $     .39                                                 $     .36
Dividends declared per common share                                                                                                    14                    %                            --                                                                      $     .08                                                 $     .08                                                 $     .08                                                 $     .08                                                 $     .07
Weighted-average common shares outstanding:
      Basic                                                                                                                             1                    %                            --                                                                          1,343                                                     1,339                                                     1,338                                                     1,336                                                     1,329
      Diluted                                                                                                                           1                    %                            --                                                       1,358               1,353               1,351               1,351               1,341  
-----------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------
Performance Measures
      Pre-tax profit margin                                                                                                                                                                                                                                                        42.5                    %                                 43.6                    %                                 42.7                    %                                 40.5                    %                                 41.8                    %
      Return on average common stockholders’ equity (annualized) (1)                                                                                                                                                                   14                    %                15                    %                15                    %                15                    %                14                    %
-----------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------
Financial Condition (at quarter end, in billions)
      Cash and investments segregated                                                                                                 (32                   )%                                        (5                   )%                                                 $    15.1                                                 $    15.9                                                 $    18.5                                                 $    21.2                                                 $    22.2
      Receivables from brokerage clients -- net                                                                            20                    %                                        11                    %                                                      20.6                                                      18.5                                                      18.0                                                      16.7                                                      17.2
      Bank loans -- net                                                                                                     7                    %                                         2                    %                                                      16.5                                                      16.2                                                      15.8                                                      15.5                                                      15.4
      Total assets                                                                                                                      9                    %                                         5                    %                                                     243.3                                                     230.7                                                     220.6                                                     227.1                                                     223.4
      Bank deposits                                                                                                                     4                    %                                         3                    %                                                     169.7                                                     165.3                                                     162.3                                                     166.9                                                     163.5
      Payables to brokerage clients                                                                                                   (13                   )%                                        (1                   )%                                                      31.2                                                      31.5                                                      33.0                                                      34.3                                                      35.9
      Short-term borrowings                                                                                                                                N/M                                       200                    %                                                      15.0                                                       5.0                                                        .3                                                        .6                                            --
      Long-term debt                                                                                                                   66                    %                                        45                    %                                                       4.8                                                       3.3                                                       3.5                                                       3.5                                                       2.9
      Stockholders’ equity                                                                                  13                    %                                         3                    %                                   18.5                18.0                17.5                17.0                16.4  
-----------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------
Other
      Full-time equivalent employees (at quarter end, in thousands)                                                                     9                    %                                         2                    %                                                      17.6                                                      17.3                                                      16.9                                                      16.5                                                      16.2
      Capital expenditures -- purchases of equipment, office facilities, and
         property, net (in millions)                                                                                                   64                    %                                        19                    %                                                 $     141                                                 $     118                                                 $      86                                                 $      67                                                 $      86
      Expenses excluding interest as a percentage of average client assets
         (annualized)                                                                                                                                                                                                                                           0.16                    %              0.16                    %              0.16                    %              0.18                    %              0.17                    %
-----------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------
Clients’ Daily Average Trades (in thousands)
      Revenue trades (2)                                                                                                               18                    %                                        11                    %                                                       345                                                       312                                                       311                                                       317                                                       293
      Asset-based trades (3)                                                                                                           13                    %                                       (12                   )%                                                       120                                                       137                                                       103                                                       103                                                       106
      Other trades (4)                                                                                                                 (6                   )%                                       (11                   )%                                    163                 184                 175                 165                 174  
-----------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------
Total                                                                                                                                  10                    %                                        (1                   )%                                    628                 633                 589                 585                 573  
-----------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------
Average Revenue Per Revenue Trade (2)                                                                                                 (34                   )%                                        (5                   )%                              $    7.33           $    7.74           $    7.96           $    9.84           $   11.03  
-----------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- ------- ------- -------------------- -------------------- ------- ------- -------------------- -------------------- ------- ------- -------------------- -------------------- ------- ------- -------------------- -------------------- ------- ------- --------------------
                                                                                                                              
                                                                                                                     -------------------- -------------------- -------------------- -------------------- --------------------
(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(R) funds and ETFs, and other proprietary products.
N/M                       Not meaningful.
 
                                                                                                                                                                                                                                     THE CHARLES SCHWAB CORPORATION
                                                                                                                                                                                                                                     Net Interest Revenue Information
                                                                                                                                                                                                                                     (In millions)
                                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                                               
------------------------------------ -------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                   Three Months Ended                                                                                                                                                                                                                                                                                                                                   Twelve Months Ended
                                                                                                                                                                                                         December 31,                                                                                                                                                                                                                                                                                                                                         December 31,
                                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        2017                                                                                                                                2016                                                                                                                                                                      2017                                                                                                                                 2016
                                                          ---------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------------                                          ---------------------------------------------------------------------------------------------------------------------------------                                          ---------------------------------------------------------------------------------------------------------------------------------
                                                      Average                           Interest                    Average                          Average                          Interest                   Average                                                                Average                           Interest                    Average                          Average                           Interest                    Average
                                                                         Balance                                              Revenue/                                       Yield/                                                                 Balance                                             Revenue/                                      Yield/                                                                 Balance                                              Revenue/                                       Yield/                                                                 Balance                                              Revenue/                                       Yield/
                                                                                                                               Expense                                        Rate                                                                                                                       Expense                                       Rate                                                                                                                        Expense                                        Rate                                                                                                                        Expense                                        Rate
------------------------------------                      ---------------------------------   -------------------- ---------------------------   -------------------- -------------------  -------------------- -------------------- ---------------------------------   -------------------- -------------------------   -------------------- -------------------                                            ---------------------------------   -------------------- ---------------------------   -------------------- -------------------  -------------------- -------------------- ---------------------------------   -------------------- ---------------------------   -------------------- -------------------
Interest-earning assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Cash and cash equivalents                                      $  11,582                                            $    37                                                 1.27         %                                                $  10,052                                            $  13                                                 0.51         %                                                $   9,931                                            $   109                                                 1.10         %                                                $  11,143                                            $    57                                                 0.51         %
Cash and investments segregated                                   15,307                                                 46                                                 1.19         %                                                   21,047                                               28                                                 0.53         %                                                   18,525                                                166                                                 0.90         %                                                   20,104                                                 93                                                 0.46         %
Broker-related receivables                                           438                                                  1                                                 0.91         %                                                      493                                                1                                                 0.27         %                                                      430                                                  3                                                 0.70         %                                                      558                                                  1                                                 0.22         %
Receivables from brokerage clients                                17,478                                                160                                                 3.63         %                                                   15,145                                              125                                                 3.28         %                                                   16,269                                                575                                                 3.53         %                                                   15,001                                                497                                                 3.31         %
Available for sale securities (1)                                 47,016                                                200                                                 1.69         %                                                   76,624                                              247                                                 1.28         %                                                   53,040                                                815                                                 1.54         %                                                   72,586                                                883                                                 1.22         %
Held to maturity securities                                      115,694                                                663                                                 2.27         %                                                   68,351                                              396                                                 2.30         %                                                  103,599                                              2,354                                                 2.27         %                                                   57,451                                              1,402                                                 2.44         %
Bank loans                                                        16,378          125           3.03         %             15,148        103           2.71         %                                                   15,919          472           2.97         %             14,715          400           2.72         %
------------------------------------                      ----------------------------------- -------------------- ----------------------------- -------------------- ---------- --------- -------------------- -------------------- ----------------------------------- -------------------- --------------------------- -------------------- ---------- ---------                                           ----------------------------------- -------------------- ----------------------------- -------------------- ---------- --------- -------------------- -------------------- ----------------------------------- -------------------- ----------------------------- -------------------- ---------- ---------
  Total interest-earning assets                                  223,893        1,232           2.18         %            206,860        913           1.76         %                                                  217,713        4,494           2.06         %            191,558        3,333           1.74         %
------------------------------------                      ----------------------------------- -------------------- ----------------------------- -------------------- ---------- --------- -------------------- -------------------- ----------------------------------- -------------------- --------------------------- -------------------- ---------- ---------                                           ----------------------------------- -------------------- ----------------------------- -------------------- ---------- --------- -------------------- -------------------- ----------------------------------- -------------------- ----------------------------- -------------------- ---------- ---------
Other interest revenue                                                             34                                  39                                                                         130                                   160      
------------------------------------                      -------------------------------------------------------- ----------------------------- -------------------- ----------------------------------------- -------------------- -------------------------------------------------------- --------------------------- -------------------- ---------------------                                          -------------------------------------------------------- ----------------------------- -------------------- ----------------------------------------- -------------------- -------------------------------------------------------- ----------------------------- -------------------- ---------------------
Total interest-earning assets                                  $ 223,893      $ 1,266           2.24         %          $ 206,860      $ 952           1.83         %                                                $ 217,713      $ 4,624           2.12         %          $ 191,558      $ 3,493           1.82         %
====================================                      ====== ======= ==================== ==================== == ===== ==================== ==================== ========== ========= ==================== ==================== ====== ======= ==================== ==================== == === ==================== ==================== ========== =========                                           ====== ======= ==================== ==================== == ===== ==================== ==================== ========== ========= ==================== ==================== ====== ======= ==================== ==================== == ===== ==================== ==================== ========== =========
Funding sources:
Bank deposits                                                  $ 165,552                                            $    50                                                 0.12         %                                                $ 154,357                                            $  11                                                 0.03         %                                                $ 163,998                                            $   148                                                 0.09         %                                                $ 141,432                                            $    37                                                 0.03         %
Payables to brokerage clients                                     23,038                                                  5                                                 0.09         %                                                   27,141                                                1                                                 0.01         %                                                   25,403                                                 16                                                 0.06         %                                                   26,311                                                  3                                                 0.01         %
Short-term borrowings                                              9,520                                                 30                                                 1.25         %                                                    2,429                                                3                                                 0.49         %                                                    3,503                                                 41                                                 1.17         %                                                    1,864                                                  9                                                 0.48         %
Long-term debt                                                     3,671           30           3.24         %              2,876         26           3.60         %                                                    3,431          119           3.47         %              2,876          104           3.62         %
------------------------------------                      ----------------------------------- -------------------- ----------------------------- -------------------- ---------- --------- -------------------- -------------------- ----------------------------------- -------------------- --------------------------- -------------------- ---------- ---------                                           ----------------------------------- -------------------- ----------------------------- -------------------- ---------- --------- -------------------- -------------------- ----------------------------------- -------------------- ----------------------------- -------------------- ---------- ---------
  Total interest-bearing liabilities                             201,781          115           0.23         %            186,803         41           0.09         %                                                  196,335          324           0.17         %            172,483          153           0.09         %
------------------------------------                      ----------------------------------- -------------------- ----------------------------- -------------------- ---------- --------- -------------------- -------------------- ----------------------------------- -------------------- --------------------------- -------------------- ---------- ---------                                           ----------------------------------- -------------------- ----------------------------- -------------------- ---------- --------- -------------------- -------------------- ----------------------------------- -------------------- ----------------------------- -------------------- ---------- ---------
Non-interest-bearing funding sources                              22,112                                                                                                                                                                     20,057                                                                                                                                                                   21,378                                                                                                                                                                     19,075
Other interest expense                                                              4                                   4                                                                          18                                    18      
------------------------------------                      -------------------------------------------------------- ----------------------------- -------------------- ----------------------------------------- -------------------- -------------------------------------------------------- --------------------------- -------------------- ---------------------                                          -------------------------------------------------------- ----------------------------- -------------------- ----------------------------------------- -------------------- -------------------------------------------------------- ----------------------------- -------------------- ---------------------
Total funding sources                                          $ 223,893      $   119           0.21         %          $ 206,860      $  45           0.09         %                                                $ 217,713      $   342           0.15         %          $ 191,558      $   171           0.09         %
====================================                      ====== ======= ==================== ==================== == ===== ==================== ==================== ========== ========= ==================== ==================== ====== ======= ==================== ==================== == === ==================== ==================== ========== =========                                           ====== ======= ==================== ==================== == ===== ==================== ==================== ========== ========= ==================== ==================== ====== ======= ==================== ==================== == ===== ==================== ==================== ========== =========
Net interest revenue                                                          $ 1,147           2.03         %                         $ 907           1.74         %                                                               $ 4,282           1.97         %                         $ 3,322           1.73         %
====================================                      ======================================================== == ===== ==================== ==================== ========== ========= ==================== ==================== ======================================================== == === ==================== ==================== ========== =========                                           ======================================================== == ===== ==================== ==================== ========== ========= ==================== ==================== ======================================================== == ===== ==================== ==================== ========== =========
(1)  Amounts have been calculated based on amortized cost.
 
                                                                                                                                                                                                                                     THE CHARLES SCHWAB CORPORATION
                                                                                                                                                                                                                                     Asset Management and Administration Fees Information
                                                                                                                                                                                                                                     (In millions)
                                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                                                             
-------------------------------------------------- -------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                        Three Months Ended                                                                                                                                                                                                                                                                                                                                                                                Twelve Months Ended
                                                                                                                                                                                                                                              December 31,                                                                                                                                                                                                                                                                                                                                                                                      December 31,
                                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                 2017                                                                                                                                                       2016                                                                                                                                                                                             2017                                                                                                                                                       2016
                                                                        -------------------------------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 Average                               Revenue                                Average                                 Average                               Revenue                                Average                                 Average                               Revenue                                Average                                 Average                               Revenue                                Average
                                                                                       Client                                                                                                               Fee                                                                         Client                                                                                                               Fee                                                                         Client                                                                                                               Fee                                                                         Client                                                                                                               Fee
                                                                                       Assets                                                                                                                                                                                           Assets                                                                                                                                                                                           Assets                                                                                                                                                                                           Assets
-------------------------------------------------- -------------------- ---------------------------------   -------------------- ----------------------------------   -------------------- ----------------------------------  -------------------- -------------------- ---------------------------------   -------------------- ----------------------------------   -------------------- ----------------------------------  -------------------- -------------------- ---------------------------------   -------------------- ----------------------------------   -------------------- ----------------------------------  -------------------- -------------------- ---------------------------------   -------------------- ----------------------------------   -------------------- ----------------------------------
Schwab money market funds before fee waivers                                 $ 162,249                              $     200                                  0.49                    %                                                $ 162,207                              $     238                                  0.58                    %                                                $ 160,735                              $     875                                  0.54                    %                                                $ 164,120                              $     962                                  0.59                    %
Fee waivers                                                              --                                                         (31 )                                                                          (10 )                                                                         (224 )                       
-------------------------------------------------- -------------------- -------------------------------------------------------- ------------------------------------ -------------------- -------------------------------------------------------- -------------------- -------------------------------------------------------- ------------------------------------ -------------------- -------------------------------------------------------- -------------------- -------------------------------------------------------- ------------------------------------ -------------------- -------------------------------------------------------- -------------------- -------------------------------------------------------- ------------------------------------ -------------------- ------------------------------------
Schwab money market funds                                                      162,249                                                       200                                                     0.49                    %                                                  162,207                                                       207                                                     0.51                    %                                                  160,735                                                       865                                                     0.54                    %                                                  164,120                                                       738                                                     0.45                    %
Schwab equity and bond funds and ETFs                                          179,764                                                        60                                                     0.13                    %                                                  125,814                                                        57                                                     0.18                    %                                                  158,625                                                       223                                                     0.14                    %                                                  115,849                                                       217                                                     0.19                    %
Mutual Fund OneSource (R) and other
   non-transaction fee funds                                                   219,157                                                       178                                                     0.32                    %                                                  198,289                                                       168                                                     0.34                    %                                                  215,333                                                       706                                                     0.33                    %                                                  199,389                                                       676                                                     0.34                    %
Other third-party mutual funds and ETFs (1)                 309,007                  69               0.09                    %            264,703                  59               0.09                    %            286,111                 251               0.09                    %            254,584                 222               0.09                    %
-------------------------------------------------- -------------------- ----------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------------- ----------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------------- ----------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------------- ----------------------------------- -------------------- ------------------------------------ -------------------- -------------- --------------------
      Total mutual funds and ETFs (2)                     $ 870,177                 507               0.23                    %          $ 751,013                 491               0.26                    %          $ 820,804               2,045               0.25                    %          $ 733,942               1,853               0.25                    %
-------------------------------------------------- -------------------- ------ ------- -------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------------- ------ ------- -------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------------- ------ ------- -------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------------- ------ ------- -------------------- -------------------- ------------------------------------ -------------------- -------------- --------------------
Advice solutions (2) :
Fee-based                                                                    $ 216,546                                                       278                                                     0.51                    %                                                $ 184,007                                                       237                                                     0.51                    %                                                $ 203,794                                                     1,043                                                     0.51                    %                                                $ 177,409                                                       915                                                     0.52                    %
Non-fee based                                                55,368      --     --               38,714      --     --               48,936      --     --               35,262      --     --  
-------------------------------------------------- -------------------- ----------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------------- ----------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------------- ----------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------------- ----------------------------------- -------------------- ------------------------------------ -------------------- -------------- --------------------
      Total advice solutions                              $ 271,914                 278               0.41                    %          $ 222,721                 237               0.42                    %          $ 252,730               1,043               0.41                    %          $ 212,671                 915               0.43                    %
-------------------------------------------------- -------------------- ------ ------- -------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------------- ------ ------- -------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------------- ------ ------- -------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------------- ------ ------- -------------------- -------------------- ------------------------------------ -------------------- -------------- --------------------
Other balance-based fees (3)                              $ 451,310                  66               0.06                    %          $ 349,610                  59               0.07                    %          $ 417,659                 258               0.06                    %          $ 339,071                 235               0.07                    %
-------------------------------------------------- -------------------- ------ ------- -------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------------- ------ ------- -------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------------- ------ ------- -------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------------- ------ ------- -------------------- -------------------- ------------------------------------ -------------------- -------------- --------------------
Other (4)                                                                                                                                     12                                                                                                                                                                                               14                                                                                                                                                                                               46                                                                                                                                                                                               52
Total asset management and administration fees                                $     863                                                   $     801                                                   $   3,392                                                   $   3,055      
================================================== ==================== ======================================================== ======= ======= ==================== ==================== ======================================================== ==================== ======================================================== ======= ======= ==================== ==================== ======================================================== ==================== ======================================================== ======= ======= ==================== ==================== ======================================================== ==================== ======================================================== ======= ======= ==================== ==================== ====================================
(1)   Includes Schwab ETF OneSource(TM).
(2)                      Advice solutions include managed portfolios, specialized strategies,
                         and customized investment advice such as Schwab Private Client,
                         Schwab Managed Portfolios, Managed Account Select(R),
                         Schwab Advisor Network(R), Windhaven(R) Strategies,
                         ThomasPartners(R) Strategies, Schwab Index Advantage(R)
                         advised retirement plan balances, Schwab Intelligent Portfolios(R),
                         Institutional Intelligent Portfolios(R), and Schwab
                         Intelligent Advisory(R), launched in March 2017; as well as
                         legacy non-fee advice solutions including Schwab Advisor Source and
                         certain retirement plan balances. Beginning in the fourth quarter of
                         2017, a prospective change was made to add non-fee based average
                         assets from managed portfolios. Average client assets for advice
                         solutions may also include the asset balances contained in the
                         mutual fund and/or ETF categories listed above. For a total end of
                         period view, please see the Monthly Activity Report.
(3)                      Includes various asset-related fees, such as trust fees, 401(k)
                         recordkeeping fees, and mutual fund clearing fees and other service
                         fees. Beginning in the first quarter of 2017, a prospective
                         methodology change was made to average client assets relating to
                         401(k) recordkeeping fees to provide improved insight into the
                         associated fee driver, which resulted in an increase of
                         approximately $25 billion. There was no impact to revenue or the
                         average fee.
(4)                      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)
                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                         ---------------------------------------------------------------------------------------------------------
                                                                                                                                                   Q4-17 % Change                                                                                                                                                                    2017                                                                                                                2016
---------------------------------------------------------------------------------------------------                      ----------------------------------------------------------------------------------------------------                          -------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------               -------------------- ------------------------------
                                                                                                                                             vs.                                         vs.                                                                          Fourth                              Third                             Second                              First                                                Fourth
(In billions, at quarter end, except as noted)                                                                                              Q4-16                                                          Q3-17                                                      Quarter                            Quarter                            Quarter                            Quarter                            Quarter
---------------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- ----------------------------------------------------- ----------------------------------------------------- ----------------------------------------------------- ----------------------------------------------------- ---------------------------------
Assets in client accounts
      Schwab One(R), certain cash equivalents and bank deposits                                                              1                    %                                         2                    %                                             $   198.6                                             $   195.0                                             $   193.7                                             $   199.6                                             $   197.4
      Proprietary mutual funds (Schwab Funds(R) and Laudus Funds(R)):
         Money market funds                                                                                                    --                                                              3                    %                                                 163.6                                                 159.2                                                 156.2                                                 162.9                                                 163.5
         Equity and bond funds (1)                                                                                                         25                    %                                         7                    %                               82.5            77.3            73.3            70.1            66.1  
---------------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- --------------------------------
                Total proprietary mutual funds                                                                                              7                    %                                         4                    %                              246.1           236.5           229.5           233.0           229.6  
---------------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- --------------------------------
      Mutual Fund Marketplace(R) (2)
         Mutual Fund OneSource(R) and other non-transaction fee funds                                                       13                    %                                         2                    %                                                 225.2                                                 221.2                                                 224.7                                                 204.9                                                 198.9
         Mutual fund clearing services                                                                                                     35                    %                                        12                    %                                                 265.4                                                 236.5                                                 226.4                                                 197.5                                                 196.6
         Other third-party mutual funds                                                                                                    22                    %                                         5                    %                              682.6           652.5           609.0           596.2           558.2  
---------------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- --------------------------------
                Total Mutual Fund Marketplace                                                                                              23                    %                                         6                    %                            1,173.2         1,110.2         1,060.1           998.6           953.7  
---------------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- --------------------------------
                    Total mutual fund assets                                                                                               20                    %                                         5                    %                            1,419.3         1,346.7         1,289.6         1,231.6         1,183.3  
---------------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- --------------------------------
      Exchange-traded funds (ETFs)
         Proprietary ETFs (1)                                                                                                              66                    %                                        13                    %                                                  99.1                                                  87.8                                                  78.0                                                  69.3                                                  59.8
         ETF OneSource(TM) (2)                                                                                                35                    %                                         8                    %                                                  28.7                                                  26.6                                                  24.9                                                  23.1                                                  21.2
         Other third-party ETFs                                                                                                            30                    %                                         8                    %                              308.8           286.7           270.2           257.0           238.3  
---------------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- --------------------------------
                Total ETF assets                                                                                                           37                    %                                         9                    %                              436.6           401.1           373.1           349.4           319.3  
---------------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- --------------------------------
      Equity and other securities                                                                                                          22                    %                                         6                    %                                               1,080.0                                               1,016.9                                                 971.4                                                 939.7                                                 886.5
      Fixed income securities                                                                                                              18                    %                                         3                    %                                                 245.6                                                 238.4                                                 229.3                                                 217.5                                                 208.3
      Margin loans outstanding                                                                                                             20                    %                                         8                    %                              (18.3 )                            (16.9 )                            (16.5 )                            (15.3 )                            (15.3 )
---------------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- --------------------------------
      Total client assets                                                                                                                  21                    %                                         6                    %                          $ 3,361.8       $ 3,181.2       $ 3,040.6       $ 2,922.5       $ 2,779.5  
===================================================================================================                                                                                                                                                    ==================== === ======= ==================== ==================== === ======= ==================== ==================== === ======= ==================== ==================== === ======= ==================== ==================== === ======= ====================
Client assets by business
      Investor Services                                                                                                                    21                    %                                         6                    %                                             $ 1,810.9                                             $ 1,707.0                                             $ 1,634.1                                             $ 1,565.9                                             $ 1,495.4
      Advisor Services                                                                                                                     21                    %                                         5                    %                            1,550.9         1,474.2         1,406.5         1,356.6         1,284.1  
---------------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- --------------------------------
      Total client assets                                                                                                                  21                    %                                         6                    %                          $ 3,361.8       $ 3,181.2       $ 3,040.6       $ 2,922.5       $ 2,779.5  
===================================================================================================                                                                                                                                                    ==================== === ======= ==================== ==================== === ======= ==================== ==================== === ======= ==================== ==================== === ======= ==================== ==================== === ======= ====================
Net growth in assets in client accounts (for the quarter
ended)
      Net new assets by business
             Investor Services (3)                                                                                                                             N/M                                        98                    %                                             $    46.4                                             $    23.4                                             $    39.9                                             $    14.0                                             $    13.7
             Advisor Services                                                                                                              37                    %                                        12                    %                               31.7            28.2            24.6            24.9            23.2  
---------------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- --------------------------------
      Total net new assets                                                                                                                112                    %                                        51                    %                          $    78.1       $    51.6       $    64.5       $    38.9       $    36.9  
---------------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- --- ------- -------------------- -------------------- --- ------- -------------------- -------------------- --- ------- -------------------- -------------------- --- ------- -------------------- -------------------- --- ------- --------------------
      Net market gains                                                                                                                                         N/M                                        15                    %                              102.5            89.0            53.6           104.1            17.3  
---------------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- --------------------------------
      Net growth                                                                                                                                               N/M                                        28                    %                          $   180.6       $   140.6       $   118.1       $   143.0       $    54.2  
===================================================================================================                                                                                                                                                    ==================== === ======= ==================== ==================== === ======= ==================== ==================== === ======= ==================== ==================== === ======= ==================== ==================== === ======= ====================
New brokerage accounts (in thousands, for the quarter ended)                                                                               32                    %                                        15                    %                                                   386                                                   336                                                   357                                                   362                                                   293
Clients (in thousands)
      Active Brokerage Accounts                                                                                                             6                    %                                         2                    %                                                10,755                                                10,565                                                10,487                                                10,320                                                10,155
      Banking Accounts                                                                                                                      8                    %                                         2                    %                                                 1,197                                                 1,176                                                 1,143                                                 1,120                                                 1,106
      Corporate Retirement Plan Participants                                                                                                2                    %                                         1                    %                              1,568           1,552           1,540           1,545           1,543  
---------------------------------------------------------------------------------------------------                                                                                                                                                    -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------------------- -------------------- --------------------------------
                                                                                                                                  
                                                                                                                         -------------------- -------------------- -------------------- -------------------- --------------------
(1)   Includes proprietary equity and bond funds and ETFs held on and off
                         the Schwab platform. As of December 31, 2017, off-platform equity
                         and bond funds and ETFs were $10.1 billion and $24.0 billion,
                         respectively.
(2)                      Excludes all proprietary mutual funds and ETFs.
(3)                      Fourth quarter of 2017 includes an inflow of $16.2 billion from a
                         mutual fund clearing services client. Second quarter of 2017
                         includes inflows of $18.3 billion from a mutual fund clearing
                         services client. First quarter of 2017 includes an outflow of $9.0
                         billion from a mutual fund clearing services client.
                         N/M Not meaningful.

- -

                                                                                                                                                                                                                                     The Charles Schwab Corporation Monthly Activity Report For
                                                                                                                                                                                                                                     December 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
                                                                                       2016                                              2017                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Change
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   ------------------------------                       -------------------------------------------
                                                                                        Dec                                               Jan                                               Feb                                               Mar                                               Apr                                               May                                               Jun                                               Jul                                               Aug                                               Sep                                               Oct                                               Nov                                                 Dec                                          Mo.             Yr.
                                                                           ---------------------------                       ---------------------------                       ---------------------------                       ---------------------------                       ---------------------------                       ---------------------------                       ---------------------------                       ---------------------------                       ---------------------------                       ---------------------------                       ---------------------------                       ---------------------------                       ------------------------------                       ---------------                       --------
Market Indices
  (at month end)
     Dow Jones Industrial Average                                           19,763                                            19,864                                            20,812                                            20,663                                            20,941                                            21,009                                            21,350                                            21,891                                            21,948                                            22,405                                            23,377                                            24,272                                               24,719                                                        2 %                        25 %
     Nasdaq Composite                                                        5,383                                             5,615                                             5,825                                             5,912                                             6,048                                             6,199                                             6,140                                             6,348                                             6,429                                             6,496                                             6,728                                             6,874                                                6,903                                           --                          28 %
     Standard & Poor’s 500                        2,239                                             2,279                                             2,364                                             2,363                                             2,384                                             2,412                                             2,423                                             2,470                                             2,472                                             2,519                                             2,575                                             2,648                                                2,674                                                        1 %                        19 %
Client Assets
  (in billions of dollars)
Beginning Client Assets                                                    2,734.6                                           2,779.5                                           2,831.3                                           2,895.2                                           2,922.5                                           2,948.8                                           2,995.8                                           3,040.6                                           3,099.9                                           3,122.3                                           3,181.2                                           3,256.5                                              3,318.8
     Net New Assets (1)                                                       18.9                                              11.1                                               6.6                                              21.2                                               2.8                                              24.0                                              37.7                                              15.8                                              18.0                                              17.8                                              35.4                                              15.7                                                 27.0                                                       72 %                        43 %
     Net Market Gains                                                         26.0        40.7        57.3         6.1        23.5        23.0         7.1        43.5         4.4        41.1        39.9        46.6           16.0  
                                                                           ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ---------- --------------------
Total Client Assets (at month end)                                         2,779.5     2,831.3     2,895.2     2,922.5     2,948.8     2,995.8     3,040.6     3,099.9     3,122.3     3,181.2     3,256.5     3,318.8        3,361.8                                     1 %                        21 %
                                                                           ======= ==================== ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ==================== ==================== ========== ====================
Receiving Ongoing Advisory Services
  (at month end)
     Investor Services                                                       217.1                                             220.8                                             227.9                                             230.9                                             234.4                                             239.1                                             242.2                                             247.2                                             249.9                                             255.0                                             259.8                                             265.1                                                268.7                                                        1 %                        24 %
     Advisor Services (2)                                                  1,184.3                                           1,208.4                                           1,239.0                                           1,250.9                                           1,262.7                                           1,283.4                                           1,297.6                                           1,323.8                                           1,333.1                                           1,358.6                                           1,382.6                                           1,410.8                                              1,431.1                                                        1 %                        21 %
Client Accounts
  (at month end, in thousands)
     Active Brokerage Accounts (3)                                          10,155                                            10,198                                            10,254                                            10,320                                            10,386                                            10,439                                            10,487                                            10,477                                            10,525                                            10,565                                            10,603                                            10,671                                               10,755                                                        1 %                         6 %
     Banking Accounts                                                        1,106                                             1,109                                             1,117                                             1,120                                             1,128                                             1,138                                             1,143                                             1,154                                             1,167                                             1,176                                             1,181                                             1,192                                                1,197                                           --                           8 %
     Corporate Retirement Plan Participants                                  1,543                                             1,543                                             1,534                                             1,545                                             1,543                                             1,541                                             1,540                                             1,540                                             1,550                                             1,552                                             1,556                                             1,564                                                1,568                                           --                           2 %
Client Activity
  New Brokerage Accounts (in thousands)                                        116                                               111                                               113                                               138                                               125                                               115                                               117                                               107                                               123                                               106                                               117                                               122                                                  147                                                       20 %                        27 %
  Inbound Calls (in thousands)                                               1,931                                             1,817                                             1,787                                             2,111                                             1,788                                             1,727                                             1,736                                             1,683                                             1,823                                             1,709                                             1,988                                             1,804                                                2,046                                                       13 %                         6 %
  Web Logins (in thousands)                                                 40,720                                            40,047                                            40,717                                            45,441                                            39,750                                            44,024                                            43,790                                            42,236                                            47,290                                            39,639                                            51,454                                            50,583                                               54,486                                                        8 %                        34 %
  Client Cash as a Percentage of Client Assets (4)                            13.0                    %                         12.7                    %                         12.4                    %                         12.4                    %                         12.1                    %                         11.8                    %                         11.5                    %                         11.3                    %                         11.4                    %                         11.1                    %                         10.9                    %                         10.8                    %                            10.8                    %                      --                         (220) bp
Mutual Fund and Exchange-Traded Fund
  Net Buys (Sells) (5, 6)
  (in millions of dollars)
     Large Capitalization Stock                                                565                                               265                                               580                                              (125 )                                             346                                               134                                               (63 )                                             (95 )                                          (1,683 )                                            (138 )                                             (51 )                                              85                                                1,023
     Small / Mid Capitalization Stock                                        1,103                                             1,364                                               673                                              (409 )                                            (797 )                                            (285 )                                            (322 )                                            (139 )                                            (293 )                                              45                                               378                                              (144 )                                                274
     International                                                            (683 )                                           1,296                                             1,633                                             1,703                                             2,410                                             3,610                                             3,631                                             2,675                                             1,705                                             1,549                                             1,913                                             2,627                                                1,852
     Specialized                                                                20                                               411                                             1,007                                               273                                               570                                               529                                               647                                               236                                               279                                               465                                               655                                                58                                                  424
     Hybrid                                                                   (456 )                                             (53 )                                             258                                               563                                                92                                                65                                              (340 )                                             142                                              (272 )                                             460                                              (118 )                                            (263 )                                                307
     Taxable Bond                                                            1,045                                             3,144                                             3,535                                             3,876                                             2,060                                             3,618                                             3,499                                             3,064                                             3,481                                             3,809                                             3,466                                             2,389                                                2,561
     Tax-Free Bond                                                          (1,692 )                                             864                                               472                                               300                                               155                                               290                                               507                                               453                                               715                                               494                                               452                                               371                                                  341
Net Buy (Sell) Activity
  (in millions of dollars)
     Mutual Funds (5)                                                       (5,825 )                                           2,522                                             4,005                                             2,368                                             1,116                                             3,837                                             2,980                                             3,201                                             1,048                                             3,002                                             2,401                                               882                                                  775
     Exchange-Traded Funds (6)                                               5,727                                             4,769                                             4,153                                             3,813                                             3,720                                             4,124                                             4,579                                             3,135                                             2,884                                             3,682                                             4,294                                             4,241                                                6,007
     Money Market Funds                                                      1,141                                            (1,761 )                                            (181 )                                           1,218                                            (4,434 )                                          (1,167 )                                          (1,260 )                                           1,022                                             2,105                                              (374 )                                             213                                             1,166                                                2,968
Average Interest-Earning Assets (7)
  (in millions of dollars)                                                 212,052                                           216,001                                           216,112                                           218,554                                           217,407                                           215,252                                           214,709                                           212,108                                           214,458                                           216,472                                           219,658                                           223,292                                              228,540                                     2 %                         8 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   ---------- --------------------
(1)   October 2017 includes an inflow of $16.2 billion from a mutual fund
                         clearing services client. June 2017 includes an inflow of $15.6
                         billion from a mutual fund clearing services client. February 2017
                         includes an outflow of $9.0 billion from a mutual fund clearing
                         services client.
(2)                      Excludes Retirement Business Services.
(3)                      Periodically, the Company reviews its active account base. In July
                         2017, active brokerage accounts were reduced by approximately 48,000
                         as a result of low-balance closures.
(4)                      Schwab One(R), certain cash equivalents, bank deposits, and
                         money market fund balances as a percentage of total client assets.
(5)                      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.
(6)                      Represents the principal value of client ETF transactions handled by
                         Schwab, including transactions in proprietary ETFs.
(7)                      Represents average total interest-earning assets on the Company’s
                         balance sheet.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180117005476r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180117005476/en/

SOURCE: The Charles Schwab Corporation"> <Property FormalName="PrimaryTwitterHandle" Value="@CharlesSchwab

MEDIA: 
Charles Schwab 
Mayura Hooper, 415-667-1525 
or 
INVESTORS/ANALYSTS: 
Charles Schwab 
Rich Fowler, 415-667-1841


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