Schwab Reports Monthly Activity Highlights

Monday, December 14, 2009 5:45 am PST

Dateline:

SAN FRANCISCO

Public Company Information:

NASDAQ:
SCHW

SAN FRANCISCO--(BUSINESS WIRE)--The Charles Schwab Corporation released its Monthly Market Activity Report today. Company highlights for the month of November 2009 include:

  • Net new assets brought to the company by new and existing clients in November 2009 totaled $6.0 billion.
  • Total client assets were $1.397 trillion as of month-end November, up 26% from November 2008 and up 4% from October 2009.
  • Client daily average trades were 297.1 thousand in November 2009, down 27% from November 2008 and down 11% from October 2009.

CFO Joe Martinetto commented, “Our client metrics remain strong and our business continues to grow. Thus far in the fourth quarter, clients have brought us $15 billion in net new assets and opened 122,000 new brokerage accounts and 39,000 net new banking accounts, and total client assets reached $1.4 trillion by the end of November, up 26% from a year ago.”

Mr. Martinetto added, “In the meantime, continued declines in the rate environment have led to heightened revenue pressures during the fourth quarter – we currently believe that management fee waivers on our proprietary money market mutual funds could increase by approximately $30 million over the third quarter total of $78 million – and client trading volumes have slowed in recent weeks. These factors, coupled with our normal seasonal increase in marketing investment, lead us to expect that fourth quarter earnings per share will be $0.02 to $0.04 lower than our third quarter 2009 results. With strong ongoing growth in our client base and continued signs of improvement in the economy and equity markets, we remain well positioned to generate increased revenues as soon as interest rates stabilize.”

This press release contains forward looking statements relating to money market fund fee waivers, the company’s fourth quarter earnings, and revenues that reflect management’s current expectations. Achievement of these expectations is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations. Important factors that may cause such differences include, but are not limited to, substantial changes in: interest rates, client holdings of money market mutual funds, net new client assets brought to Schwab, client asset values, and the extent of any additional impairment losses on the company’s investment portfolio, as well as other factors set forth in the company’s Form 10-Q for the period ending September 30, 2009.

The SMART report can be viewed with its accompanying 12-month data at http://www.aboutschwab.com/investor/financials/financial_reports.html

About Charles Schwab

The Charles Schwab Corporation (Nasdaq:SCHW) is a leading provider of financial services, with more than 300 offices and 7.7 million client brokerage accounts, 1.5 million corporate retirement plan participants, 706,000 banking accounts, and $1.4 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Named Highest in Investor Satisfaction by J.D. Power and Associates, its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Advisor Services division. The Charles Schwab Bank (member FDIC) provides banking and mortgage services and products. More information is available at www.schwab.com.

Contact:

Charles Schwab
MEDIA:
Greg Gable, 415-667-0473
or
INVESTORS/ANALYSTS:
Rich Fowler, 415-667-1841

Corporate Public Relations
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888-767-5432

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