2016 Revenues Rise 17% to $7.5 Billion, Net Income Grows 31% to $1.9 Billion, Both Records
Total Client Assets Rise 11% to a Record $2.78 Trillion at Year-end
The Charles Schwab Corporation announced today that its net income for
the fourth quarter of 2016 was a record $522 million, up 4% from
$503 million for the prior quarter, and up 25% from $416 million for the
fourth quarter of 2015. Net income for the twelve months ended
December 31, 2016 was $1.9 billion, up 31% year-over-year.
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Three Months Ended
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Twelve Months Ended
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December 31,
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%
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December 31,
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%
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Financial Highlights
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2016
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2015
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Change
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2016
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2015
|
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Change
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Net revenues (in millions)
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$
|
1,972
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|
|
$
|
1,691
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17
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%
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$
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7,478
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|
|
$
|
6,380
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17
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%
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Net income (in millions)
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$
|
522
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|
$
|
416
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25
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%
|
|
$
|
1,889
|
|
|
$
|
1,447
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31
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%
|
|
Diluted earnings per common share
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$
|
.36
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$
|
.28
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|
|
29
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%
|
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$
|
1.31
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|
|
$
|
1.03
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|
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27
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%
|
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Pre-tax profit margin
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|
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41.8
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%
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|
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38.1
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%
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|
|
|
|
|
40.0
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%
|
|
|
35.7
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%
|
|
|
|
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Return on average common stockholders’ equity (annualized)
|
|
|
14
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%
|
|
|
13
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%
|
|
|
|
|
|
14
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%
|
|
|
12
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%
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EPS Impact of Certain Non-Recurring Items
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Net litigation proceeds (1)
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$
|
-
|
|
|
$
|
.03
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|
|
|
|
|
$
|
.01
|
|
|
$
|
.04
|
|
|
|
|
|
Net tax benefits (2)
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|
$
|
-
|
|
|
$
|
.01
|
|
|
|
|
|
$
|
-
|
|
|
$
|
.02
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|
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|
|
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Note: All per-share results are rounded to the nearest cent, based
on weighted-average diluted common shares outstanding.
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(1)
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Net litigation proceeds include $57 million in the fourth quarter of
2015, and $16 million and $75 million in full-year 2016 and 2015,
respectively, relating to the company’s non-agency residential
mortgage-backed securities (RMBS) portfolio, which are included in
Other revenue.
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(2)
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Net tax benefits include $15 million in the fourth quarter of 2015
and $29 million for the full year, relating to certain current and
prior-year matters, which are included in Taxes on income.
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CEO Walt Bettinger said, “Schwab achieved truly noteworthy results in
2016 by sustaining our ‘Through Clients’ Eyes’ strategy and working to
earn our clients’ trust every day. During the year, from disappointing
economic news early on, to the disruption of the Brexit vote, and then
through the tumult of the presidential election, clients could trust
that Schwab stood ready to help them navigate market volatility, and
they made active use of our full-service capabilities. Our financial
consultants held planning conversations with approximately 132,000
clients last year, up 18% from 2015. Client assets enrolled in one of
our retail advisory solutions and those guided by independent advisors
totaled $1.40 trillion at the end of 2016, up 12%. New and existing
clients brought $125.5 billion in core net new assets to Schwab during
2016, marking a 5% annual organic growth rate and the 5th
consecutive year over $100 billion. Net new assets in our Retail and
Advisor Services businesses rose by 10% and 21%, respectively, over the
prior year, while Mutual Fund Clearing and Retirement Plan flows slowed
due to client turnover. Total client assets at year-end were a record
$2.78 trillion, up 11%. We closed out 2016 serving more clients than
ever, including 10.2 million active brokerage accounts, 1.1 million
banking accounts and 1.5 million retirement plan participants, increases
of 4%, 7% and 2%, respectively.”
Mr. Bettinger continued, “As Schwab continues to offer more value and a
better investing experience, new and existing clients choose to entrust
us with more of their assets, fueling our financial performance. Our
revenues rose 17% to a record $7.5 billion in 2016. On the expense
front, we entered the year with goals that allowed for needed growth in
our infrastructure and increased reinvestment to better serve clients
while still delivering improved profitability. We kept to those goals
through the ups and downs of 2016, which helped us increase net income
by nearly a third over our 2015 performance, to a record $1.9 billion.”
Mr. Bettinger added, “Our work to challenge the status quo on behalf of
our clients continued across multiple fronts in 2016. We expanded and
enhanced our Schwab OpenView Gateway® and Schwab Advisor
Center® platforms to help the independent advisors who
custody with us operate more efficiently and stay focused on serving
their clients. We introduced Schwab Intelligent Advisory® as
an extension of our contemporary, full-service approach to helping all
individual clients build and manage their wealth. Schwab Intelligent
Advisory is designed to be broadly accessible with a low balance minimum
and fee, combining personalized financial and investment planning
through CFP® professionals with automated and diversified
portfolio management through Schwab Intelligent Portfolios®.
As part of our commitment to offering more value to investors, we
launched the Schwab Target Index Funds, a new series of target-date
mutual funds constructed with Schwab ETFs that are designed to be the
lowest cost of their kind available to employer-sponsored retirement
plans and retail investors.* We also expanded Schwab ETF OneSource™ by
16 net new funds in 2016, enabling Schwab clients to choose from a total
of 228 ETFs covering 69 Morningstar categories, all for $0 online trade
commissions. In addition, we introduced the Schwab Live hub to provide
traders with centralized access to the interactive and live content we
offer to help them succeed. We also continued our work to make it easier
to establish a relationship with a locally-based investment professional
by extending our footprint across the country – we added 3 new company
branches and 5 new independent branches during the year.”
CFO Joe Martinetto commented, “Schwab’s 2016 performance is a clear
example of the company’s financial formula again working as designed:
solid business growth driving solid revenue growth through diversified
sources, leading to improved profitability through continued expense
discipline. We expanded client assets by 11% during an environment that
had some rough patches but ultimately included improving economic
conditions, positive equity market returns and, at long last, the second
small step by the Federal Reserve away from its zero interest rate
policy of recent years. We achieved 17% revenue growth by generating
record levels of net interest revenue and asset management and
administration fees, which more than offset lower revenue from trading
and the conclusion of certain litigation. Net interest revenue rose 32%
to $3.3 billion due to a strong increase in client cash sweep deposits
and higher short-term interest rates. Asset management and
administration fees rose by 15% to $3.1 billion largely due to higher
money market fund management fees relating to the rate environment and
continued lift in client assets enrolled in one of our retail advisory
solutions. Higher rates provided breathing room for our increased
investment in people and technology, resulting in 9% expense growth for
2016. This increase more than doubled our constrained 2015 increase but
still allowed for a 780 basis point gap between revenue and expense
growth and a record 40% pre-tax profit margin, beating the prior
high-water mark set in 2008.”
Mr. Martinetto concluded, “We remain focused on managing the company’s
balance sheet to support growth initiatives and further our strategy of
optimizing the spread earned on client cash sweep balances. We completed
approximately $8 billion in bulk transfers to Schwab Bank during 2016,
including approximately $4 billion in the fourth quarter. These
transfers, along with growth in bank deposits from our ongoing asset
gathering, helped increase interest-earning assets on our balance sheet
by 22% during 2016 to $216 billion at year-end. We supported this growth
with capital generated through earnings and the issuance of
approximately $1.4 billion in additional preferred stock. As part of
managing Schwab’s capital levels, we maintain a target range for common
stock dividends equal to 20-30% of earnings; consistent with our
improving earnings picture, we increased our quarterly cash dividend by
17% during the year, to $0.07. We ended 2016 with a preliminary Tier-1
Leverage ratio of 7.2% and a full-year return on equity of 14%, the
highest in seven years. Our solid capital position and healthy returns
position Schwab to continue investing for profitable growth and sharing
the benefits of our scale with clients while building long-term
stockholder value.”
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
182,000, up 21% year-over-year; total accounts were 7.1 million, up
3% year-over-year.
-
Held financial planning conversations with approximately
32,000 clients during the quarter, up 10% year-over-year.
Approximately 132,000 planning conversations were held in 2016, up 18%
from the prior year.
-
Opened two company branches in Brookfield, WI and Aspen, CO and opened
two independent branches in Gainesville, FL and Peoria, IL. Schwab has
over 335 branches across the country that offer clients access to a
range of investing and personal finance guidance, services, and
products.
-
Graduated the second class of FC Academy, a 24-month development
rotational program preparing recent college graduates for a career in
one of our branch offices.
-
Graduated the second class of FC University, a 10-week onboarding
program that prepares new hires to be successful at Schwab and
supports the expansion of our branch network.
-
Launched “Investing Principles” on schwab.com that outline Schwab’s
core beliefs and approach to investing. Divided into three key
components – Identify Your Goals, Get Invested, and Stay on Track
– they create a foundation for every client, no matter where they are
on their investing journey.
Advisor Services
-
Announced enhancements to Institutional Intelligent Portfolios®,
the automated investment management platform designed for independent
advisors. The primary update is enhanced portfolio customization,
which provides advisors greater flexibility to design portfolios based
on their investment philosophies.
-
Announced enhancements to Schwab Advisor Center, the custody and
trading platform for independent advisors. The platform now offers an
array of automation features and tools, along with online support,
enabling advisors and their clients to reduce paperwork and complexity.
-
Hosted over 5,100 advisors, exhibitors, sponsors, and media at our
IMPACT® conference – the largest and longest-running annual
gathering of independent registered investment advisors. This year,
Schwab executives and industry leaders focused on growth,
cybersecurity, and talent.
Products and Infrastructure
-
For Charles Schwab Bank:
-
Launched a series of client experience, risk management, and
efficiency improvements including two-way text fraud alerts for
debit cards, online joint Schwab Bank High Yield Investor Checking®
account opening, paperless Schwab Bank High Yield Investor Saving®
statements, and paperless 1099-INT statements.
-
Balance sheet assets = $175.7 billion, up 26% year-over-year.
-
Outstanding mortgage and home equity loans = $11.5 billion, up 4%
year-over-year.
-
Pledged Asset Line® balances = $3.9 billion, up
22% year-over-year.
-
Schwab Bank High Yield Investor Checking accounts = 914,000, with
$13.8 billion in balances.
-
Client assets managed by Windhaven® totaled $9.0 billion,
down 24% from the fourth quarter of 2015.
-
Client assets managed by ThomasPartners® totaled
$10.2 billion, up 40% from the fourth quarter of 2015.
-
Client assets managed by Intelligent Portfolios (Schwab Intelligent
Portfolios® and Institutional Intelligent Portfolios®)
totaled $12.3 billion, up $2.1 billion from the third quarter of 2016.
Supporting schedules are either attached or located at: http://www.aboutschwab.com/investor-relations/financial-reports.
* For more information about Schwab Target Index Funds and Schwab ETFs,
see csimfunds.com.
Commentary from the CFO
Joe Martinetto, Senior Executive Vice President and 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 was posted on January 19, 2016.
Business Update
The company also announced today that it has scheduled a Business Update
for institutional investors on Thursday, February 2, 2017. This Update
is designed to help the investment community keep abreast of recent
developments and management’s strategic focus. The program 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
client value and investing experience; growth in the client base and
client assets; financial performance; business growth; revenue growth;
improved profitability; expense discipline; balance sheet management;
growth initiatives; optimizing the spread earned on client cash; target
range for common stock dividends; investing for profitable growth;
sharing the benefits of scale with clients; and building long-term
stockholder value. 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 develop and launch new products,
services and capabilities in a timely and successful manner; 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, equity
valuations and trading activity; competitive pressures on rates and
fees; client use of the company’s advisory solutions and other products
and services; the level of client assets, including cash balances; the
company’s ability to manage expenses; capital needs and management; the
company’s ability to monetize client assets; the timing, amount and
impact of bulk transfers; the quality of the company’s balance sheet
assets; client sensitivity to interest rates; regulatory guidance; the
effect of adverse developments in litigation or regulatory matters and
the extent of any charges associated with legal matters; any adverse
impact of financial reform legislation and related regulations; 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 (NYSE:SCHW) is a leading provider of
financial services, with more than 335 offices and 10.2 million active
brokerage accounts, 1.5 million corporate retirement plan participants,
1.1 million banking accounts, and $2.78 trillion in client assets as of
December 31, 2016. 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.
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|
|
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,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset management and administration fees (1)
|
|
|
$
|
801
|
|
|
|
$
|
673
|
|
|
|
$
|
3,055
|
|
|
|
$
|
2,650
|
|
|
Interest revenue
|
|
|
|
952
|
|
|
|
|
726
|
|
|
|
|
3,493
|
|
|
|
|
2,657
|
|
|
Interest expense
|
|
|
|
(45
|
)
|
|
|
|
(36
|
)
|
|
|
|
(171
|
)
|
|
|
|
(132
|
)
|
|
Net interest revenue
|
|
|
|
907
|
|
|
|
|
690
|
|
|
|
|
3,322
|
|
|
|
|
2,525
|
|
|
Trading revenue
|
|
|
|
202
|
|
|
|
|
208
|
|
|
|
|
825
|
|
|
|
|
866
|
|
|
Other
|
|
|
|
62
|
|
|
|
|
120
|
|
|
|
|
271
|
|
|
|
|
328
|
|
|
Provision for loan losses
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
5
|
|
|
|
|
11
|
|
|
Total net revenues
|
|
|
|
1,972
|
|
|
|
|
1,691
|
|
|
|
|
7,478
|
|
|
|
|
6,380
|
|
|
Expenses Excluding Interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
629
|
|
|
|
|
572
|
|
|
|
|
2,466
|
|
|
|
|
2,241
|
|
|
Professional services
|
|
|
|
134
|
|
|
|
|
119
|
|
|
|
|
506
|
|
|
|
|
459
|
|
|
Occupancy and equipment
|
|
|
|
99
|
|
|
|
|
93
|
|
|
|
|
398
|
|
|
|
|
353
|
|
|
Advertising and market development
|
|
|
|
61
|
|
|
|
|
60
|
|
|
|
|
265
|
|
|
|
|
249
|
|
|
Communications
|
|
|
|
58
|
|
|
|
|
58
|
|
|
|
|
237
|
|
|
|
|
233
|
|
|
Depreciation and amortization
|
|
|
|
61
|
|
|
|
|
58
|
|
|
|
|
234
|
|
|
|
|
224
|
|
|
Other
|
|
|
|
106
|
|
|
|
|
86
|
|
|
|
|
379
|
|
|
|
|
342
|
|
|
Total expenses excluding interest
|
|
|
|
1,148
|
|
|
|
|
1,046
|
|
|
|
|
4,485
|
|
|
|
|
4,101
|
|
|
Income before taxes on income
|
|
|
|
824
|
|
|
|
|
645
|
|
|
|
|
2,993
|
|
|
|
|
2,279
|
|
|
Taxes on income
|
|
|
|
302
|
|
|
|
|
229
|
|
|
|
|
1,104
|
|
|
|
|
832
|
|
|
Net Income
|
|
|
|
522
|
|
|
|
|
416
|
|
|
|
|
1,889
|
|
|
|
|
1,447
|
|
|
Preferred stock dividends and other (2)
|
|
|
|
44
|
|
|
|
|
38
|
|
|
|
|
143
|
|
|
|
|
83
|
|
|
Net Income Available to Common Stockholders
|
|
|
$
|
478
|
|
|
|
$
|
378
|
|
|
|
$
|
1,746
|
|
|
|
$
|
1,364
|
|
|
Weighted-Average Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
1,329
|
|
|
|
|
1,319
|
|
|
|
|
1,324
|
|
|
|
|
1,315
|
|
|
Diluted
|
|
|
|
1,341
|
|
|
|
|
1,330
|
|
|
|
|
1,334
|
|
|
|
|
1,327
|
|
|
Earnings Per Common Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
.36
|
|
|
|
$
|
.29
|
|
|
|
$
|
1.32
|
|
|
|
$
|
1.04
|
|
|
Diluted
|
|
|
$
|
.36
|
|
|
|
$
|
.28
|
|
|
|
$
|
1.31
|
|
|
|
$
|
1.03
|
|
|
Dividends Declared Per Common Share
|
|
|
$
|
.07
|
|
|
|
$
|
.06
|
|
|
|
$
|
.27
|
|
|
|
$
|
.24
|
|
|
(1)
|
|
Includes fee waivers of $31 and $153 during the fourth quarters of
2016 and 2015, respectively, and $224 and $672 during the twelve
months ended 2016 and 2015, respectively, relating to
Schwab-sponsored money market funds.
|
|
(2)
|
|
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)
|
|
|
|
|
|
|
|
|
|
Q4-16 % change
|
|
2016
|
|
2015
|
|
|
|
vs.
|
|
vs.
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Fourth
|
|
(In millions, except per share amounts and as noted)
|
|
Q4-15
|
|
Q3-16
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset management and administration fees
|
|
19
|
%
|
|
-
|
|
|
$
|
801
|
|
|
|
$
|
798
|
|
|
|
$
|
757
|
|
|
|
$
|
699
|
|
|
|
$
|
673
|
|
|
|
Net interest revenue
|
|
31
|
%
|
|
7
|
%
|
|
|
907
|
|
|
|
|
845
|
|
|
|
|
798
|
|
|
|
|
772
|
|
|
|
|
690
|
|
|
|
Trading revenue
|
|
(3
|
%)
|
|
6
|
%
|
|
|
202
|
|
|
|
|
190
|
|
|
|
|
201
|
|
|
|
|
232
|
|
|
|
|
208
|
|
|
|
Other
|
|
(48
|
%)
|
|
(18
|
%)
|
|
|
62
|
|
|
|
|
76
|
|
|
|
|
70
|
|
|
|
|
63
|
|
|
|
|
120
|
|
|
|
Provision for loan losses
|
|
-
|
|
|
(100
|
%)
|
|
|
-
|
|
|
|
|
5
|
|
|
|
|
2
|
|
|
|
|
(2
|
)
|
|
|
|
-
|
|
|
|
Total net revenues
|
|
17
|
%
|
|
3
|
%
|
|
|
1,972
|
|
|
|
|
1,914
|
|
|
|
|
1,828
|
|
|
|
|
1,764
|
|
|
|
|
1,691
|
|
|
|
Expenses Excluding Interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
10
|
%
|
|
3
|
%
|
|
|
629
|
|
|
|
|
609
|
|
|
|
|
602
|
|
|
|
|
626
|
|
|
|
|
572
|
|
|
|
Professional services
|
|
13
|
%
|
|
2
|
%
|
|
|
134
|
|
|
|
|
131
|
|
|
|
|
125
|
|
|
|
|
116
|
|
|
|
|
119
|
|
|
|
Occupancy and equipment
|
|
6
|
%
|
|
(1
|
%)
|
|
|
99
|
|
|
|
|
100
|
|
|
|
|
101
|
|
|
|
|
98
|
|
|
|
|
93
|
|
|
|
Advertising and market development
|
|
2
|
%
|
|
(5
|
%)
|
|
|
61
|
|
|
|
|
64
|
|
|
|
|
70
|
|
|
|
|
70
|
|
|
|
|
60
|
|
|
|
Communications
|
|
-
|
|
|
2
|
%
|
|
|
58
|
|
|
|
|
57
|
|
|
|
|
62
|
|
|
|
|
60
|
|
|
|
|
58
|
|
|
|
Depreciation and amortization
|
|
5
|
%
|
|
2
|
%
|
|
|
61
|
|
|
|
|
60
|
|
|
|
|
57
|
|
|
|
|
56
|
|
|
|
|
58
|
|
|
|
Other
|
|
23
|
%
|
|
7
|
%
|
|
|
106
|
|
|
|
|
99
|
|
|
|
|
91
|
|
|
|
|
83
|
|
|
|
|
86
|
|
|
|
Total expenses excluding interest
|
|
10
|
%
|
|
3
|
%
|
|
|
1,148
|
|
|
|
|
1,120
|
|
|
|
|
1,108
|
|
|
|
|
1,109
|
|
|
|
|
1,046
|
|
|
|
Income before taxes on income
|
|
28
|
%
|
|
4
|
%
|
|
|
824
|
|
|
|
|
794
|
|
|
|
|
720
|
|
|
|
|
655
|
|
|
|
|
645
|
|
|
|
Taxes on income
|
|
32
|
%
|
|
4
|
%
|
|
|
302
|
|
|
|
|
291
|
|
|
|
|
268
|
|
|
|
|
243
|
|
|
|
|
229
|
|
|
|
Net Income
|
|
25
|
%
|
|
4
|
%
|
|
$
|
522
|
|
|
|
$
|
503
|
|
|
|
$
|
452
|
|
|
|
$
|
412
|
|
|
|
$
|
416
|
|
|
|
Preferred stock dividends and other
|
|
16
|
%
|
|
33
|
%
|
|
|
44
|
|
|
|
|
33
|
|
|
|
|
46
|
|
|
|
|
20
|
|
|
|
|
38
|
|
|
|
Net Income Available to Common Stockholders
|
|
26
|
%
|
|
2
|
%
|
|
$
|
478
|
|
|
|
$
|
470
|
|
|
|
$
|
406
|
|
|
|
$
|
392
|
|
|
|
$
|
378
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
24
|
%
|
|
-
|
|
|
$
|
.36
|
|
|
|
$
|
.36
|
|
|
|
$
|
.31
|
|
|
|
$
|
.30
|
|
|
|
$
|
.29
|
|
|
|
Diluted
|
|
29
|
%
|
|
3
|
%
|
|
$
|
.36
|
|
|
|
$
|
.35
|
|
|
|
$
|
.30
|
|
|
|
$
|
.29
|
|
|
|
$
|
.28
|
|
|
|
Dividends declared per common share
|
|
17
|
%
|
|
-
|
|
|
$
|
.07
|
|
|
|
$
|
.07
|
|
|
|
$
|
.07
|
|
|
|
$
|
.06
|
|
|
|
$
|
.06
|
|
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1
|
%
|
|
-
|
|
|
|
1,329
|
|
|
|
|
1,324
|
|
|
|
|
1,322
|
|
|
|
|
1,321
|
|
|
|
|
1,319
|
|
|
|
Diluted
|
|
1
|
%
|
|
1
|
%
|
|
|
1,341
|
|
|
|
|
1,334
|
|
|
|
|
1,333
|
|
|
|
|
1,330
|
|
|
|
|
1,330
|
|
|
|
Performance Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax profit margin
|
|
|
|
|
|
|
41.8
|
|
%
|
|
|
41.5
|
|
%
|
|
|
39.4
|
|
%
|
|
|
37.1
|
|
%
|
|
|
38.1
|
|
%
|
|
Return on average common stockholders’ equity (annualized) (1)
|
|
|
|
|
|
|
14
|
|
%
|
|
|
14
|
|
%
|
|
|
13
|
|
%
|
|
|
13
|
|
%
|
|
|
13
|
|
%
|
|
Financial Condition (at quarter end, in billions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and investments segregated
|
|
13
|
%
|
|
10
|
%
|
|
$
|
22.2
|
|
|
|
$
|
20.1
|
|
|
|
$
|
18.6
|
|
|
|
$
|
20.3
|
|
|
|
$
|
19.6
|
|
|
|
Receivables from brokerage clients - net
|
|
(1
|
%)
|
|
5
|
%
|
|
|
17.2
|
|
|
|
|
16.4
|
|
|
|
|
16.8
|
|
|
|
|
16.0
|
|
|
|
|
17.3
|
|
|
|
Bank loans - net
|
|
8
|
%
|
|
3
|
%
|
|
|
15.4
|
|
|
|
|
14.9
|
|
|
|
|
14.7
|
|
|
|
|
14.4
|
|
|
|
|
14.3
|
|
|
|
Total assets
|
|
22
|
%
|
|
7
|
%
|
|
|
223.4
|
|
|
|
|
209.3
|
|
|
|
|
198.1
|
|
|
|
|
191.0
|
|
|
|
|
183.7
|
|
|
|
Bank deposits
|
|
26
|
%
|
|
9
|
%
|
|
|
163.5
|
|
|
|
|
149.6
|
|
|
|
|
137.3
|
|
|
|
|
135.7
|
|
|
|
|
129.5
|
|
|
|
Payables to brokerage clients
|
|
8
|
%
|
|
9
|
%
|
|
|
35.9
|
|
|
|
|
33.0
|
|
|
|
|
32.7
|
|
|
|
|
32.3
|
|
|
|
|
33.2
|
|
|
|
Short-term borrowings
|
|
-
|
|
|
(100
|
%)
|
|
|
-
|
|
|
|
|
3.0
|
|
|
|
|
5.0
|
|
|
|
|
.8
|
|
|
|
|
-
|
|
|
|
Long-term debt
|
|
-
|
|
|
-
|
|
|
|
2.9
|
|
|
|
|
2.9
|
|
|
|
|
2.9
|
|
|
|
|
2.9
|
|
|
|
|
2.9
|
|
|
|
Stockholders’ equity
|
|
22
|
%
|
|
6
|
%
|
|
|
16.4
|
|
|
|
|
15.5
|
|
|
|
|
15.0
|
|
|
|
|
14.5
|
|
|
|
|
13.4
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent employees (at quarter end, in thousands)
|
|
6
|
%
|
|
1
|
%
|
|
|
16.2
|
|
|
|
|
16.1
|
|
|
|
|
16.1
|
|
|
|
|
15.6
|
|
|
|
|
15.3
|
|
|
|
Capital expenditures - purchases of equipment, office facilities,
and property, net (in millions)
|
|
28
|
%
|
|
15
|
%
|
|
$
|
86
|
|
|
|
$
|
75
|
|
|
|
$
|
131
|
|
|
|
$
|
61
|
|
|
|
$
|
67
|
|
|
|
Expenses excluding interest as a percentage of average client
assets (annualized)
|
|
|
|
|
|
|
0.17
|
|
%
|
|
|
0.17
|
|
%
|
|
|
0.17
|
|
%
|
|
|
0.18
|
|
%
|
|
|
0.16
|
|
%
|
|
Clients’ Daily Average Trades (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue trades (2)
|
|
3
|
%
|
|
9
|
%
|
|
|
293
|
|
|
|
|
268
|
|
|
|
|
279
|
|
|
|
|
328
|
|
|
|
|
285
|
|
|
|
Asset-based trades (3)
|
|
26
|
%
|
|
33
|
%
|
|
|
106
|
|
|
|
|
80
|
|
|
|
|
90
|
|
|
|
|
101
|
|
|
|
|
84
|
|
|
|
Other trades (4)
|
|
4
|
%
|
|
(11
|
%)
|
|
|
174
|
|
|
|
|
195
|
|
|
|
|
149
|
|
|
|
|
187
|
|
|
|
|
168
|
|
|
|
Total
|
|
7
|
%
|
|
6
|
%
|
|
|
573
|
|
|
|
|
543
|
|
|
|
|
518
|
|
|
|
|
616
|
|
|
|
|
537
|
|
|
|
Average Revenue Per Revenue Trade (2)
|
|
(6
|
%)
|
|
(1
|
%)
|
|
$
|
11.03
|
|
|
|
$
|
11.17
|
|
|
|
$
|
11.27
|
|
|
|
$
|
11.44
|
|
|
|
$
|
11.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Return on average common stockholders’ equity is calculated using
net income available to common stockholders divided by average
common stockholders’ equity.
|
|
(2)
|
|
Includes all client trades that generate trading revenue (i.e.,
commission revenue or principal transaction revenue); also known as
DART.
|
|
(3)
|
|
Includes eligible trades executed by clients who participate in one
or more of the Company’s asset-based pricing relationships.
|
|
(4)
|
|
Includes all commission-free trades, including Schwab Mutual Fund
OneSource® funds and ETFs, and other proprietary products.
|
|
|
|
|
|
|
|
THE CHARLES SCHWAB CORPORATION
|
|
Net Interest Revenue Information
|
|
(In millions)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
|
Interest
|
|
Average
|
|
|
|
|
|
Interest
|
|
Average
|
|
|
|
|
|
Interest
|
|
Average
|
|
|
|
|
|
Interest
|
|
Average
|
|
|
|
Average
|
|
Revenue/
|
|
Yield/
|
|
|
|
Average
|
|
Revenue/
|
|
Yield/
|
|
|
|
Average
|
|
Revenue/
|
|
Yield/
|
|
|
|
Average
|
|
Revenue/
|
|
Yield/
|
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
10,052
|
|
$
|
13
|
|
0.51
|
%
|
|
|
|
$
|
9,738
|
|
$
|
7
|
|
0.29
|
%
|
|
|
|
$
|
11,143
|
|
$
|
57
|
|
0.51
|
%
|
|
|
|
$
|
9,358
|
|
$
|
24
|
|
0.26
|
%
|
|
Cash and investments segregated
|
|
|
21,047
|
|
|
28
|
|
0.53
|
%
|
|
|
|
|
18,605
|
|
|
10
|
|
0.21
|
%
|
|
|
|
|
20,104
|
|
|
93
|
|
0.46
|
%
|
|
|
|
|
18,606
|
|
|
31
|
|
0.17
|
%
|
|
Broker-related receivables (1)
|
|
|
493
|
|
|
1
|
|
0.27
|
%
|
|
|
|
|
243
|
|
|
-
|
|
0.08
|
%
|
|
|
|
|
558
|
|
|
1
|
|
0.22
|
%
|
|
|
|
|
274
|
|
|
-
|
|
0.07
|
%
|
|
Receivables from brokerage clients
|
|
|
15,145
|
|
|
125
|
|
3.28
|
%
|
|
|
|
|
15,715
|
|
|
128
|
|
3.23
|
%
|
|
|
|
|
15,001
|
|
|
497
|
|
3.31
|
%
|
|
|
|
|
15,212
|
|
|
502
|
|
3.30
|
%
|
|
Securities available for sale (2)
|
|
|
76,624
|
|
|
247
|
|
1.28
|
%
|
|
|
|
|
66,352
|
|
|
175
|
|
1.05
|
%
|
|
|
|
|
72,586
|
|
|
883
|
|
1.22
|
%
|
|
|
|
|
62,249
|
|
|
629
|
|
1.01
|
%
|
|
Securities held to maturity
|
|
|
68,351
|
|
|
396
|
|
2.30
|
%
|
|
|
|
|
43,156
|
|
|
271
|
|
2.49
|
%
|
|
|
|
|
57,451
|
|
|
1,402
|
|
2.44
|
%
|
|
|
|
|
38,280
|
|
|
957
|
|
2.50
|
%
|
|
Bank loans
|
|
|
15,148
|
|
|
103
|
|
2.71
|
%
|
|
|
|
|
14,345
|
|
|
95
|
|
2.63
|
%
|
|
|
|
|
14,715
|
|
|
400
|
|
2.72
|
%
|
|
|
|
|
13,973
|
|
|
369
|
|
2.64
|
%
|
|
Total interest-earning assets
|
|
|
206,860
|
|
|
913
|
|
1.76
|
%
|
|
|
|
|
168,154
|
|
|
686
|
|
1.62
|
%
|
|
|
|
|
191,558
|
|
|
3,333
|
|
1.74
|
%
|
|
|
|
|
157,952
|
|
|
2,512
|
|
1.59
|
%
|
|
Other interest revenue
|
|
|
|
|
|
39
|
|
|
|
|
|
|
|
|
|
40
|
|
|
|
|
|
|
|
|
|
160
|
|
|
|
|
|
|
|
|
|
145
|
|
|
|
Total interest-earning assets
|
|
$
|
206,860
|
|
$
|
952
|
|
1.83
|
%
|
|
|
|
$
|
168,154
|
|
$
|
726
|
|
1.71
|
%
|
|
|
|
$
|
191,558
|
|
$
|
3,493
|
|
1.82
|
%
|
|
|
|
$
|
157,952
|
|
$
|
2,657
|
|
1.68
|
%
|
|
Funding sources:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank deposits
|
|
$
|
154,357
|
|
$
|
11
|
|
0.03
|
%
|
|
|
|
$
|
122,054
|
|
$
|
7
|
|
0.02
|
%
|
|
|
|
$
|
141,432
|
|
$
|
37
|
|
0.03
|
%
|
|
|
|
$
|
113,464
|
|
$
|
29
|
|
0.03
|
%
|
|
Payables to brokerage clients (1)
|
|
|
27,141
|
|
|
1
|
|
0.01
|
%
|
|
|
|
|
25,813
|
|
|
-
|
|
0.01
|
%
|
|
|
|
|
26,311
|
|
|
3
|
|
0.01
|
%
|
|
|
|
|
25,651
|
|
|
2
|
|
0.01
|
%
|
|
Short-term borrowings (1,3)
|
|
|
2,429
|
|
|
3
|
|
0.49
|
%
|
|
|
|
|
16
|
|
|
-
|
|
0.41
|
%
|
|
|
|
|
1,864
|
|
|
9
|
|
0.48
|
%
|
|
|
|
|
21
|
|
|
-
|
|
0.27
|
%
|
|
Long-term debt (4)
|
|
|
2,876
|
|
|
26
|
|
3.60
|
%
|
|
|
|
|
2,959
|
|
|
25
|
|
3.35
|
%
|
|
|
|
|
2,876
|
|
|
104
|
|
3.62
|
%
|
|
|
|
|
2,717
|
|
|
92
|
|
3.39
|
%
|
|
Total interest-bearing liabilities (4)
|
|
|
186,803
|
|
|
41
|
|
0.09
|
%
|
|
|
|
|
150,842
|
|
|
32
|
|
0.08
|
%
|
|
|
|
|
172,483
|
|
|
153
|
|
0.09
|
%
|
|
|
|
|
141,853
|
|
|
123
|
|
0.09
|
%
|
|
Non-interest-bearing funding sources (3)
|
|
|
20,057
|
|
|
|
|
|
|
|
|
|
17,312
|
|
|
|
|
|
|
|
|
|
19,075
|
|
|
|
|
|
|
|
|
|
16,099
|
|
|
|
|
|
|
Other interest expense
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
|
|
|
|
|
|
9
|
|
|
|
Total funding sources
|
|
$
|
206,860
|
|
$
|
45
|
|
0.09
|
%
|
|
|
|
$
|
168,154
|
|
$
|
36
|
|
0.08
|
%
|
|
|
|
$
|
191,558
|
|
$
|
171
|
|
0.09
|
%
|
|
|
|
$
|
157,952
|
|
$
|
132
|
|
0.08
|
%
|
|
Net interest revenue
|
|
|
|
|
$
|
907
|
|
1.74
|
%
|
|
|
|
|
|
|
$
|
690
|
|
1.63
|
%
|
|
|
|
|
|
|
$
|
3,322
|
|
1.73
|
%
|
|
|
|
|
|
|
$
|
2,525
|
|
1.60
|
%
|
|
(1)
|
|
Interest revenue or expense was less than $500,000 in the period or
periods presented.
|
|
(2)
|
|
Amounts have been calculated based on amortized cost.
|
|
(3)
|
|
Certain prior-period amounts have been reclassified to conform to
the 2016 presentation.
|
|
(4)
|
|
Adjusted for the retrospective adoption of Accounting Standards
Update 2015-03, which decreased long-term debt and total
interest-bearing liabilities by an immaterial amount.
|
|
|
|
|
|
|
|
THE CHARLES SCHWAB CORPORATION
|
|
Asset Management and Administration Fees Information
|
|
(In millions)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
Average
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
Client
|
|
|
|
Average
|
|
|
|
Client
|
|
|
|
Average
|
|
|
|
Client
|
|
|
|
Average
|
|
|
|
Client
|
|
|
|
Average
|
|
|
|
Assets
|
|
Revenue
|
|
Fee
|
|
|
|
Assets
|
|
Revenue
|
|
Fee
|
|
|
|
Assets
|
|
Revenue
|
|
Fee
|
|
|
|
Assets
|
|
Revenue
|
|
Fee
|
|
Schwab money market funds before fee waivers
|
|
$
|
162,207
|
|
$
|
238
|
|
|
0.58
|
%
|
|
|
|
$
|
162,437
|
|
$
|
241
|
|
|
0.59
|
%
|
|
|
|
$
|
164,120
|
|
$
|
962
|
|
|
0.59
|
%
|
|
|
|
$
|
161,381
|
|
$
|
947
|
|
|
0.59
|
%
|
|
Fee waivers
|
|
|
|
|
|
(31
|
)
|
|
|
|
|
|
|
|
|
|
(153
|
)
|
|
|
|
|
|
|
|
|
|
(224
|
)
|
|
|
|
|
|
|
|
|
|
(672
|
)
|
|
|
|
Schwab money market funds
|
|
|
162,207
|
|
|
207
|
|
|
0.51
|
%
|
|
|
|
|
162,437
|
|
|
88
|
|
|
0.21
|
%
|
|
|
|
|
164,120
|
|
|
738
|
|
|
0.45
|
%
|
|
|
|
|
161,381
|
|
|
275
|
|
|
0.17
|
%
|
|
Schwab equity and bond funds and ETFs
|
|
|
125,814
|
|
|
57
|
|
|
0.18
|
%
|
|
|
|
|
105,935
|
|
|
54
|
|
|
0.20
|
%
|
|
|
|
|
115,849
|
|
|
217
|
|
|
0.19
|
%
|
|
|
|
|
102,486
|
|
|
217
|
|
|
0.21
|
%
|
|
Mutual Fund OneSource ®
|
|
|
198,289
|
|
|
168
|
|
|
0.34
|
%
|
|
|
|
|
212,409
|
|
|
182
|
|
|
0.34
|
%
|
|
|
|
|
199,389
|
|
|
676
|
|
|
0.34
|
%
|
|
|
|
|
225,347
|
|
|
764
|
|
|
0.34
|
%
|
|
Other third-party mutual funds and ETFs (1)
|
|
|
264,703
|
|
|
59
|
|
|
0.09
|
%
|
|
|
|
|
248,659
|
|
|
53
|
|
|
0.08
|
%
|
|
|
|
|
254,584
|
|
|
222
|
|
|
0.09
|
%
|
|
|
|
|
251,491
|
|
|
223
|
|
|
0.09
|
%
|
|
Total mutual funds and ETFs (2)
|
|
$
|
751,013
|
|
|
491
|
|
|
0.26
|
%
|
|
|
|
$
|
729,440
|
|
|
377
|
|
|
0.21
|
%
|
|
|
|
$
|
733,942
|
|
|
1,853
|
|
|
0.25
|
%
|
|
|
|
$
|
740,705
|
|
|
1,479
|
|
|
0.20
|
%
|
|
Advice solutions (2) :
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee-based
|
|
$
|
184,007
|
|
|
237
|
|
|
0.51
|
%
|
|
|
|
$
|
171,577
|
|
|
225
|
|
|
0.52
|
%
|
|
|
|
$
|
177,409
|
|
|
915
|
|
|
0.52
|
%
|
|
|
|
$
|
172,302
|
|
|
898
|
|
|
0.52
|
%
|
|
Intelligent Portfolios
|
|
|
11,119
|
|
|
-
|
|
|
-
|
|
|
|
|
|
4,891
|
|
|
-
|
|
|
-
|
|
|
|
|
|
8,377
|
|
|
-
|
|
|
-
|
|
|
|
|
|
3,274
|
|
|
-
|
|
|
-
|
|
|
Legacy Non-Fee
|
|
|
17,174
|
|
|
-
|
|
|
-
|
|
|
|
|
|
16,135
|
|
|
-
|
|
|
-
|
|
|
|
|
|
16,969
|
|
|
-
|
|
|
-
|
|
|
|
|
|
16,463
|
|
|
-
|
|
|
-
|
|
|
Total advice solutions
|
|
$
|
212,300
|
|
|
237
|
|
|
0.44
|
%
|
|
|
|
$
|
192,603
|
|
|
225
|
|
|
0.46
|
%
|
|
|
|
$
|
202,755
|
|
|
915
|
|
|
0.45
|
%
|
|
|
|
$
|
192,039
|
|
|
898
|
|
|
0.47
|
%
|
|
Other balance-based fees (3)
|
|
|
349,610
|
|
|
59
|
|
|
0.07
|
%
|
|
|
|
|
328,982
|
|
|
57
|
|
|
0.07
|
%
|
|
|
|
|
339,071
|
|
|
235
|
|
|
0.07
|
%
|
|
|
|
|
324,701
|
|
|
226
|
|
|
0.07
|
%
|
|
Other (4)
|
|
|
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
52
|
|
|
|
|
|
|
|
|
|
|
47
|
|
|
|
|
Total asset management and administration fees
|
|
|
|
|
$
|
801
|
|
|
|
|
|
|
|
|
|
$
|
673
|
|
|
|
|
|
|
|
|
|
$
|
3,055
|
|
|
|
|
|
|
|
|
|
$
|
2,650
|
|
|
|
|
Note: Beginning in the fourth quarter of 2015, certain changes
have been made to the above categorizations of both balances and
revenues in order to provide improved insight into asset
management and administration fee drivers. Prior period
information has been recast to reflect these changes.
|
|
(1)
|
|
Includes Schwab ETF OneSource™.
|
|
(2)
|
|
Advice solutions include managed portfolios, specialized strategies,
and customized investment advice. Fee-based advice solutions include
Schwab Private Client, Schwab Managed Portfolios, Managed Account
Select®, Schwab Advisor Network®, Windhaven®
Strategies, ThomasPartners® Dividend Growth Strategy, and
Schwab Index Advantage® advised retirement plan balances.
Intelligent Portfolios include Schwab Intelligent Portfolios®,
launched in March 2015, and Institutional Intelligent Portfolios®,
launched in June 2015. Legacy Non-Fee advice solutions include
superseded programs such as Schwab Advisor Source and certain
retirement plan balances. Average client assets for advice solutions
may also include the asset balances contained in the mutual fund
and/or ETF categories listed above.
|
|
(3)
|
|
Includes various asset-based fees, such as trust fees, 401(k)
recordkeeping fees, and mutual fund clearing fees and other service
fees.
|
|
(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)
|
|
|
|
|
|
|
|
|
|
Q4-16 % Change
|
|
2016
|
|
2015
|
|
|
|
vs.
|
|
vs.
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Fourth
|
|
(In billions, at quarter end, except as noted)
|
|
Q4-15
|
|
Q3-16
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Assets in client accounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schwab One®, certain cash equivalents and bank deposits
|
|
23
|
%
|
|
9
|
%
|
|
$
|
197.4
|
|
|
$
|
181.1
|
|
|
$
|
168.4
|
|
|
$
|
166.4
|
|
|
$
|
161.1
|
|
|
Proprietary mutual funds (Schwab Funds® and Laudus Funds®):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market funds
|
|
(2
|
%)
|
|
2
|
%
|
|
|
163.5
|
|
|
|
160.3
|
|
|
|
161.0
|
|
|
|
167.4
|
|
|
|
166.1
|
|
|
Equity and bond funds (1)
|
|
6
|
%
|
|
2
|
%
|
|
|
66.1
|
|
|
|
64.6
|
|
|
|
62.8
|
|
|
|
62.1
|
|
|
|
62.4
|
|
|
Total proprietary mutual funds
|
|
-
|
|
|
2
|
%
|
|
|
229.6
|
|
|
|
224.9
|
|
|
|
223.8
|
|
|
|
229.5
|
|
|
|
228.5
|
|
|
Mutual Fund Marketplace® (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mutual Fund OneSource®
|
|
(4
|
%)
|
|
(3
|
%)
|
|
|
198.9
|
|
|
|
206.1
|
|
|
|
203.4
|
|
|
|
203.8
|
|
|
|
207.7
|
|
|
Mutual fund clearing services
|
|
5
|
%
|
|
(1
|
%)
|
|
|
196.6
|
|
|
|
198.8
|
|
|
|
192.0
|
|
|
|
186.3
|
|
|
|
186.5
|
|
|
Other third-party mutual funds
|
|
12
|
%
|
|
-
|
|
|
|
558.2
|
|
|
|
556.1
|
|
|
|
529.7
|
|
|
|
510.7
|
|
|
|
496.4
|
|
|
Total Mutual Fund Marketplace
|
|
7
|
%
|
|
(1
|
%)
|
|
|
953.7
|
|
|
|
961.0
|
|
|
|
925.1
|
|
|
|
900.8
|
|
|
|
890.6
|
|
|
Total mutual fund assets
|
|
6
|
%
|
|
-
|
|
|
|
1,183.3
|
|
|
|
1,185.9
|
|
|
|
1,148.9
|
|
|
|
1,130.3
|
|
|
|
1,119.1
|
|
|
Exchange-traded funds (ETFs)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proprietary ETFs (1)
|
|
51
|
%
|
|
11
|
%
|
|
|
59.8
|
|
|
|
53.9
|
|
|
|
47.9
|
|
|
|
42.9
|
|
|
|
39.7
|
|
|
ETF OneSource™ (2)
|
|
32
|
%
|
|
5
|
%
|
|
|
21.2
|
|
|
|
20.2
|
|
|
|
19.0
|
|
|
|
17.5
|
|
|
|
16.1
|
|
|
Other third-party ETFs
|
|
15
|
%
|
|
3
|
%
|
|
|
238.3
|
|
|
|
230.8
|
|
|
|
220.5
|
|
|
|
211.5
|
|
|
|
207.4
|
|
|
Total ETF assets
|
|
21
|
%
|
|
5
|
%
|
|
|
319.3
|
|
|
|
304.9
|
|
|
|
287.4
|
|
|
|
271.9
|
|
|
|
263.2
|
|
|
Equity and other securities
|
|
11
|
%
|
|
3
|
%
|
|
|
886.5
|
|
|
|
860.3
|
|
|
|
830.7
|
|
|
|
808.5
|
|
|
|
799.0
|
|
|
Fixed income securities
|
|
11
|
%
|
|
-
|
|
|
|
208.3
|
|
|
|
208.0
|
|
|
|
202.0
|
|
|
|
194.1
|
|
|
|
187.2
|
|
|
Margin loans outstanding
|
|
(3
|
%)
|
|
3
|
%
|
|
|
(15.3
|
)
|
|
|
(14.9
|
)
|
|
|
(15.4
|
)
|
|
|
(14.5
|
)
|
|
|
(15.8
|
)
|
|
Total client assets
|
|
11
|
%
|
|
2
|
%
|
|
$
|
2,779.5
|
|
|
$
|
2,725.3
|
|
|
$
|
2,622.0
|
|
|
$
|
2,556.7
|
|
|
$
|
2,513.8
|
|
|
Client assets by business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Services
|
|
10
|
%
|
|
2
|
%
|
|
$
|
1,495.4
|
|
|
$
|
1,470.8
|
|
|
$
|
1,415.5
|
|
|
$
|
1,377.3
|
|
|
$
|
1,358.6
|
|
|
Advisor Services
|
|
11
|
%
|
|
2
|
%
|
|
|
1,284.1
|
|
|
|
1,254.5
|
|
|
|
1,206.5
|
|
|
|
1,179.4
|
|
|
|
1,155.2
|
|
|
Total client assets
|
|
11
|
%
|
|
2
|
%
|
|
$
|
2,779.5
|
|
|
$
|
2,725.3
|
|
|
$
|
2,622.0
|
|
|
$
|
2,556.7
|
|
|
$
|
2,513.8
|
|
|
Net growth in assets in client accounts (for the quarter
ended)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net new assets by business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Services (3)
|
|
(37
|
%)
|
|
(4
|
%)
|
|
$
|
13.7
|
|
|
$
|
14.2
|
|
|
$
|
14.8
|
|
|
$
|
15.7
|
|
|
$
|
21.6
|
|
|
Advisor Services
|
|
9
|
%
|
|
47
|
%
|
|
|
23.2
|
|
|
|
15.8
|
|
|
|
11.8
|
|
|
|
16.3
|
|
|
|
21.3
|
|
|
Total net new assets
|
|
(14
|
%)
|
|
23
|
%
|
|
$
|
36.9
|
|
|
$
|
30.0
|
|
|
$
|
26.6
|
|
|
$
|
32.0
|
|
|
$
|
42.9
|
|
|
Net market gains
|
|
(69
|
%)
|
|
(76
|
%)
|
|
|
17.3
|
|
|
|
73.3
|
|
|
|
38.7
|
|
|
|
10.9
|
|
|
|
55.0
|
|
|
Net growth
|
|
(45
|
%)
|
|
(48
|
%)
|
|
$
|
54.2
|
|
|
$
|
103.3
|
|
|
$
|
65.3
|
|
|
$
|
42.9
|
|
|
$
|
97.9
|
|
|
New brokerage accounts (in thousands, for the quarter ended)
|
|
12
|
%
|
|
11
|
%
|
|
|
293
|
|
|
|
264
|
|
|
|
271
|
|
|
|
265
|
|
|
|
262
|
|
|
Clients (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active Brokerage Accounts
|
|
4
|
%
|
|
1
|
%
|
|
|
10,155
|
|
|
|
10,046
|
|
|
|
9,977
|
|
|
|
9,869
|
|
|
|
9,769
|
|
|
Banking Accounts
|
|
7
|
%
|
|
2
|
%
|
|
|
1,106
|
|
|
|
1,088
|
|
|
|
1,065
|
|
|
|
1,047
|
|
|
|
1,033
|
|
|
Corporate Retirement Plan Participants
|
|
2
|
%
|
|
(1
|
%)
|
|
|
1,543
|
|
|
|
1,561
|
|
|
|
1,553
|
|
|
|
1,532
|
|
|
|
1,519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes proprietary equity and bond funds and ETFs held on and off
the Schwab platform. As of December 31, 2016, off-platform equity
and bond funds and ETFs were $7.8 billion and $12.7 billion,
respectively.
|
|
(2)
|
|
Excludes all proprietary mutual funds and ETFs.
|
|
(3)
|
|
Second quarter of 2016 includes an inflow of $2.7 billion from a
mutual fund clearing services client. Fourth quarter of 2015
includes an inflow of $10.2 billion from a mutual fund clearing
services client.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Charles Schwab Corporation Monthly Activity Report For
December 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
17,425
|
|
|
16,466
|
|
|
16,517
|
|
|
17,685
|
|
|
17,774
|
|
|
17,787
|
|
|
17,930
|
|
|
18,432
|
|
|
18,401
|
|
|
18,308
|
|
|
18,142
|
|
|
19,124
|
|
|
19,763
|
|
|
3%
|
|
13%
|
|
Nasdaq Composite
|
|
5,007
|
|
|
4,614
|
|
|
4,558
|
|
|
4,870
|
|
|
4,775
|
|
|
4,948
|
|
|
4,843
|
|
|
5,162
|
|
|
5,213
|
|
|
5,312
|
|
|
5,189
|
|
|
5,324
|
|
|
5,383
|
|
|
1%
|
|
8%
|
|
Standard & Poor’s 500
|
|
2,044
|
|
|
1,940
|
|
|
1,932
|
|
|
2,060
|
|
|
2,065
|
|
|
2,097
|
|
|
2,099
|
|
|
2,174
|
|
|
2,171
|
|
|
2,168
|
|
|
2,126
|
|
|
2,199
|
|
|
2,239
|
|
|
2%
|
|
10%
|
|
Client Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in billions of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Client Assets
|
|
2,553.3
|
|
|
2,513.8
|
|
|
2,428.3
|
|
|
2,433.6
|
|
|
2,556.7
|
|
|
2,576.2
|
|
|
2,607.2
|
|
|
2,622.0
|
|
|
2,698.2
|
|
|
2,710.4
|
|
|
2,725.3
|
|
|
2,686.7
|
|
|
2,734.6
|
|
|
|
|
|
|
Net New Assets (1)
|
|
15.2
|
|
|
8.1
|
|
|
10.9
|
|
|
13.0
|
|
|
1.3
|
|
|
16.0
|
|
|
9.3
|
|
|
9.0
|
|
|
10.4
|
|
|
10.6
|
|
|
6.1
|
|
|
11.9
|
|
|
18.9
|
|
|
59%
|
|
24%
|
|
Net Market (Losses) Gains
|
|
(54.7
|
)
|
|
(93.6
|
)
|
|
(5.6
|
)
|
|
110.1
|
|
|
18.2
|
|
|
15.0
|
|
|
5.5
|
|
|
67.2
|
|
|
1.8
|
|
|
4.3
|
|
|
(44.7
|
)
|
|
36.0
|
|
|
26.0
|
|
|
|
|
|
|
Total Client Assets (at month end)
|
|
2,513.8
|
|
|
2,428.3
|
|
|
2,433.6
|
|
|
2,556.7
|
|
|
2,576.2
|
|
|
2,607.2
|
|
|
2,622.0
|
|
|
2,698.2
|
|
|
2,710.4
|
|
|
2,725.3
|
|
|
2,686.7
|
|
|
2,734.6
|
|
|
2,779.5
|
|
|
2%
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receiving Ongoing Advisory Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(at month end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Services
|
|
192.6
|
|
|
187.3
|
|
|
187.9
|
|
|
197.9
|
|
|
200.3
|
|
|
202.7
|
|
|
205.0
|
|
|
210.2
|
|
|
211.7
|
|
|
213.4
|
|
|
211.3
|
|
|
213.2
|
|
|
217.1
|
|
|
2%
|
|
13%
|
|
Advisor Services (2)
|
|
1,061.1
|
|
|
1,029.9
|
|
|
1,032.3
|
|
|
1,084.0
|
|
|
1,093.2
|
|
|
1,103.7
|
|
|
1,110.5
|
|
|
1,142.3
|
|
|
1,149.4
|
|
|
1,155.4
|
|
|
1,140.5
|
|
|
1,161.8
|
|
|
1,184.3
|
|
|
2%
|
|
12%
|
|
Client Accounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(at month end, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active Brokerage Accounts
|
|
9,769
|
|
|
9,792
|
|
|
9,826
|
|
|
9,869
|
|
|
9,916
|
|
|
9,948
|
|
|
9,977
|
|
|
9,989
|
|
|
10,021
|
|
|
10,046
|
|
|
10,068
|
|
|
10,102
|
|
|
10,155
|
|
|
1%
|
|
4%
|
|
Banking Accounts
|
|
1,033
|
|
|
1,039
|
|
|
1,045
|
|
|
1,047
|
|
|
1,053
|
|
|
1,060
|
|
|
1,065
|
|
|
1,074
|
|
|
1,083
|
|
|
1,088
|
|
|
1,092
|
|
|
1,099
|
|
|
1,106
|
|
|
1%
|
|
7%
|
|
Corporate Retirement Plan Participants
|
|
1,519
|
|
|
1,518
|
|
|
1,523
|
|
|
1,532
|
|
|
1,532
|
|
|
1,555
|
|
|
1,553
|
|
|
1,559
|
|
|
1,565
|
|
|
1,561
|
|
|
1,547
|
|
|
1,550
|
|
|
1,543
|
|
|
-
|
|
2%
|
|
Client Activity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Brokerage Accounts (in thousands)
|
|
98
|
|
|
83
|
|
|
84
|
|
|
98
|
|
|
103
|
|
|
81
|
|
|
87
|
|
|
84
|
|
|
96
|
|
|
84
|
|
|
84
|
|
|
93
|
|
|
116
|
|
|
25%
|
|
18%
|
|
Inbound Calls (in thousands)
|
|
1,844
|
|
|
1,736
|
|
|
1,737
|
|
|
1,902
|
|
|
1,867
|
|
|
1,554
|
|
|
1,665
|
|
|
1,605
|
|
|
1,755
|
|
|
1,633
|
|
|
1,565
|
|
|
1,642
|
|
|
1,931
|
|
|
18%
|
|
5%
|
|
Web Logins (in thousands)
|
|
32,156
|
|
|
33,268
|
|
|
33,283
|
|
|
38,078
|
|
|
37,854
|
|
|
38,000
|
|
|
43,220
|
|
|
46,217
|
|
|
42,627
|
|
|
38,237
|
|
|
35,429
|
|
|
37,687
|
|
|
40,720
|
|
|
8%
|
|
27%
|
|
Client Cash as a Percentage of Client Assets (3)
|
|
13.0
|
%
|
|
13.7
|
%
|
|
13.7
|
%
|
|
13.1
|
%
|
|
12.8
|
%
|
|
12.7
|
%
|
|
12.6
|
%
|
|
12.5
|
%
|
|
12.5
|
%
|
|
12.5
|
%
|
|
12.8
|
%
|
|
12.8
|
%
|
|
13.0
|
%
|
|
20 bp
|
|
-
|
|
Mutual Fund and Exchange-Traded Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Buys (Sells)
(4, 5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Large Capitalization Stock
|
|
451
|
|
|
(162
|
)
|
|
(212
|
)
|
|
(462
|
)
|
|
(857
|
)
|
|
(799
|
)
|
|
185
|
|
|
(1,173
|
)
|
|
(755
|
)
|
|
(1,209
|
)
|
|
(652
|
)
|
|
200
|
|
|
565
|
|
|
|
|
|
|
Small / Mid Capitalization Stock
|
|
(572
|
)
|
|
(952
|
)
|
|
58
|
|
|
685
|
|
|
(86
|
)
|
|
(272
|
)
|
|
(113
|
)
|
|
(320
|
)
|
|
(214
|
)
|
|
460
|
|
|
(190
|
)
|
|
877
|
|
|
1,103
|
|
|
|
|
|
|
International
|
|
(918
|
)
|
|
469
|
|
|
(28
|
)
|
|
833
|
|
|
324
|
|
|
(207
|
)
|
|
(1,208
|
)
|
|
(347
|
)
|
|
386
|
|
|
(26
|
)
|
|
(1
|
)
|
|
348
|
|
|
(683
|
)
|
|
|
|
|
|
Specialized
|
|
(495
|
)
|
|
(668
|
)
|
|
260
|
|
|
191
|
|
|
815
|
|
|
265
|
|
|
470
|
|
|
357
|
|
|
189
|
|
|
(274
|
)
|
|
(159
|
)
|
|
(1,019
|
)
|
|
20
|
|
|
|
|
|
|
Hybrid
|
|
(1,361
|
)
|
|
(377
|
)
|
|
38
|
|
|
281
|
|
|
14
|
|
|
1,133
|
|
|
(403
|
)
|
|
(463
|
)
|
|
(219
|
)
|
|
58
|
|
|
(432
|
)
|
|
(687
|
)
|
|
(456
|
)
|
|
|
|
|
|
Taxable Bond
|
|
(4,020
|
)
|
|
99
|
|
|
546
|
|
|
1,628
|
|
|
1,098
|
|
|
1,526
|
|
|
1,421
|
|
|
1,420
|
|
|
1,888
|
|
|
1,585
|
|
|
1,475
|
|
|
(1,110
|
)
|
|
1,045
|
|
|
|
|
|
|
Tax-Free Bond
|
|
731
|
|
|
379
|
|
|
641
|
|
|
949
|
|
|
479
|
|
|
940
|
|
|
700
|
|
|
766
|
|
|
920
|
|
|
539
|
|
|
20
|
|
|
(1,090
|
)
|
|
(1,692
|
)
|
|
|
|
|
|
Net Buy (Sell) Activity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mutual Funds (4)
|
|
(10,988
|
)
|
|
(1,215
|
)
|
|
197
|
|
|
1,769
|
|
|
(207
|
)
|
|
620
|
|
|
(2,049
|
)
|
|
(1,683
|
)
|
|
(297
|
)
|
|
(656
|
)
|
|
(1,979
|
)
|
|
(5,864
|
)
|
|
(5,825
|
)
|
|
|
|
|
|
Exchange-Traded Funds (5)
|
|
4,804
|
|
|
3
|
|
|
1,106
|
|
|
2,336
|
|
|
1,994
|
|
|
1,966
|
|
|
3,101
|
|
|
1,923
|
|
|
2,492
|
|
|
1,789
|
|
|
2,040
|
|
|
3,383
|
|
|
5,727
|
|
|
|
|
|
|
Money Market Funds
|
|
4,538
|
|
|
1,994
|
|
|
1,359
|
|
|
(2,101
|
)
|
|
(3,959
|
)
|
|
(738
|
)
|
|
(1,799
|
)
|
|
701
|
|
|
(768
|
)
|
|
(658
|
)
|
|
211
|
|
|
1,851
|
|
|
1,141
|
|
|
|
|
|
|
Average Interest-Earning Assets
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of dollars)
|
|
172,334
|
|
|
177,332
|
|
|
178,610
|
|
|
181,529
|
|
|
183,341
|
|
|
184,432
|
|
|
187,933
|
|
|
191,850
|
|
|
194,268
|
|
|
199,107
|
|
|
201,894
|
|
|
206,970
|
|
|
212,052
|
|
|
2%
|
|
23%
|
|
(1)
|
|
May 2016 includes an inflow of $2.7 billion from a mutual fund
clearing services client.
|
|
(2)
|
|
Excludes Retirement Business Services Trust and Corporate Brokerage
Retirement Services.
|
|
(3)
|
|
Schwab One®, certain cash equivalents, bank deposits and
money market fund balances as a percentage of total client assets.
|
|
(4)
|
|
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.
|
|
(5)
|
|
Represents the principal value of client ETF transactions handled by
Schwab, including transactions in proprietary ETFs.
|
|
(6)
|
|
Represents average total interest-earning assets on the Company’s
balance sheet.
|
|
|
|
|
