[July 17, 2018] |
|
Schwab Reports Record Quarterly Net Income of $866 Million, Up 51%
The Charles Schwab Corporation announced today that its net income for
the second quarter of 2018 was a record $866 million, up 11% from $783
million for the prior quarter, and up 51% from $575 million for the
second quarter of 2017. Net income for the six months ended June 30,
2018 was $1.6 billion, up 45% from the year-earlier period.
This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180717005316/en/
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|
|
|
Three Months Ended
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
June 30,
|
|
|
%
|
|
|
June 30,
|
|
|
%
|
Financial Highlights
|
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
|
|
|
|
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|
|
|
|
|
|
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|
|
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|
Net revenues (in millions)
|
|
|
$
|
2,486
|
|
|
|
$
|
2,130
|
|
|
|
17%
|
|
|
$
|
4,884
|
|
|
|
$
|
4,211
|
|
|
|
16%
|
Net income (in millions)
|
|
|
$
|
866
|
|
|
|
$
|
575
|
|
|
|
51%
|
|
|
$
|
1,649
|
|
|
|
$
|
1,139
|
|
|
|
45%
|
Diluted earnings per common share
|
|
|
$
|
.60
|
|
|
|
$
|
.39
|
|
|
|
54%
|
|
|
$
|
1.14
|
|
|
|
$
|
.78
|
|
|
|
46%
|
Pre-tax profit margin
|
|
|
45.5
|
%
|
|
|
42.7
|
%
|
|
|
|
|
|
43.7
|
%
|
|
|
41.6
|
%
|
|
|
|
Return on average common stockholders' equity (annualized)
|
|
|
19
|
%
|
|
|
15
|
%
|
|
|
|
|
|
19
|
%
|
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: All per-share results are rounded to the nearest cent, based
on weighted-average diluted common shares outstanding.
|
|
CEO Walt Bettinger said, "Schwab's second quarter results illustrate our
'Virtuous Cycle' at work - when we do right by our clients, they entrust
us with more business. During the period, investors rewarded us with
core net new assets of $53.4 billion, a second quarter record. Our first
half core net new assets of $119.0 billion were also a record and
represented a 7% annualized organic growth rate. Both of our primary
businesses contributed to this strength in asset gathering, with Retail
and Advisor Services setting new records for the first half of the year
- their net new assets were up 46% and 24%, respectively. At the same
time, we drove ongoing market share gains, attracting over two dollars
in inflows for every dollar in outflows to competitors for the fifth
consecutive quarter. Investors opened 384,000 new accounts in the
period, bringing the first half total to 827,000, the highest level in
18 years. The 7,500+ independent advisors who custody with us continued
to build their practices with our help - accounts at Schwab under their
guidance rose 10% to 3.3 million at month-end June, versus total company
brokerage account growth of 7%."
"While markets felt fairly volatile, investors remained engaged, and we
saw record trading for the first half of 2018, up 29% from last year,"
Mr. Bettinger continued. "Clients also sought our help and guidance;
digital advisory solutions sustained an asset gathering pace of around
$1 billion a month, reaching $33.3 billion at quarter-end. Total assets
receiving ongoing advisory services at Schwab equaled a record $1.77
trillion at month-end June, a 15% year-over-year increase, compared with
overall client asset growth of 12%. We ended the quarter serving $3.40
trillion in total client assets across 11.2 million active brokerage
accounts, 1.3 million banking accounts, and 1.6 million retirement plan
participants."
Mr. Bettinger concluded, "We believe both retail investors and
registered investment advisors are attracted by our willingness to
challenge the status quo through our 'no trade-offs' combination of
value, service, transparency, and trust. Through consistent strategic
focus and disciplined execution, we have doubled the size of our client
asset base in under seven years. Yet, we still serve less than 10% of
U.S. investable wealth, leaving us an enormous opportunity to continue
driving growth into the future."
CFO Peter Crawford commented, "Our record second quarter results
demonstrate ongoing success in growing and serving our client base, with
some help from the economic environment. Total revenues reached $2.5
billion, up 17% from last year, and our twelfth consecutive record
quarter. Net interest revenue rose to a record $1.4 billion, a 34%
increase, driven by higher interest rates and larger client cash sweep
balances. Our net interest margin expanded 18 basis points from the
first quarter to 2.30%, a level not seen since 2009. Asset management
and administration fees decreased 4% from last year to $814 million, due
to lower money market fund revenue as a result of transfers to bank
sweep, client asset allocation choices, and our 2017 fee reductions. On
the trading front, higher client activity lifted Trading revenue 15% to
$180 million. Turning to expenses, our 11% increase reflected hiring to
support our expanding client base and ongoing investments for fueling
growth. Altogether, we produced a 570 basis point gap between revenue
and expense growth, which resulted in a record 45.5% pre-tax profit
margin; combined with a lower tax rate of 23.4%, we delivered record Net
income of $866 million, up 51% from a year ago."
Mr. Crawford added, "Effective balance sheet management remains an
essential element of our financial discipline. In the second quarter, we
issued $1.95 billion of senior notes, which we used to redeem $275
million of maturing debt and maintain appropriate liquidity given the
growth we're achieving. In addition, we utilized Federal Home Loan Bank
advances during the quarter to provide temporary funding for additional
investments ahead of deposit growth. Transfers from sweep money market
fund balances to bank sweep totaled $20 billion, and the outstanding
FHLB advances ranged as high as $5 billion in the quarter. These
advances were paid off by the end of June, so the $14 billion quarterly
increase in our consolidated balance sheet was largely due to the bank
sweep transfers and client activity. As anticipated, we crossed the $250
billion asset threshold for heightened regulatory requirements during
the second quarter, ending the period at $262 billion in total
consolidated assets. The company's year-to-date balance sheet growth of
nearly 8% is tracking with the expectation we laid out in February of at
least 15% growth for 2018. For the second quarter, our preliminary Tier
1 Leverage Ratio increased slightly to 7.6%, and we delivered the
highest return on equity in over nine years, at 19%. These are tangible
signs of our robust financial health propelled by strong earnings
generation."
Supporting schedules and selected balances are either attached or
located at: http://www.aboutschwab.com/investor-relations/.
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 mutual fund clearing, was
posted on February 14, 2018.
Forward-Looking Statements
This press release contains forward-looking statements relating to
growth in the company's client base, accounts, and assets; balance sheet
growth; and earnings generation. 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, equity valuations, and trading activity; 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; level of client assets,
including cash balances; the timing and amount of transfers to bank
sweep; client sensitivity to interest rates; regulatory guidance;
capital and liquidity needs and management; the company's ability to
manage expenses; and other factors set forth in the company's most
recent report on Form 10-K.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of
financial services, with more than 345 offices and 11.2 million active
brokerage accounts, 1.6 million corporate retirement plan participants,
1.3 million banking accounts, and $3.40 trillion in client assets as of
June 30, 2018. 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
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest revenue
|
|
|
$
|
1,590
|
|
|
|
$
|
1,127
|
|
|
|
$
|
3,011
|
|
|
|
$
|
2,182
|
|
Interest expense
|
|
|
|
(183
|
)
|
|
|
|
(74
|
)
|
|
|
|
(341
|
)
|
|
|
|
(129
|
)
|
Net interest revenue
|
|
|
|
1,407
|
|
|
|
|
1,053
|
|
|
|
|
2,670
|
|
|
|
|
2,053
|
|
Asset management and administration fees
|
|
|
|
814
|
|
|
|
|
845
|
|
|
|
|
1,665
|
|
|
|
|
1,668
|
|
Trading revenue
|
|
|
|
180
|
|
|
|
|
157
|
|
|
|
|
381
|
|
|
|
|
349
|
|
Other
|
|
|
|
85
|
|
|
|
|
75
|
|
|
|
|
168
|
|
|
|
|
141
|
|
Total net revenues
|
|
|
|
2,486
|
|
|
|
|
2,130
|
|
|
|
|
4,884
|
|
|
|
|
4,211
|
|
Expenses Excluding Interest
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
745
|
|
|
|
|
663
|
|
|
|
|
1,515
|
|
|
|
|
1,364
|
|
Professional services
|
|
|
|
156
|
|
|
|
|
144
|
|
|
|
|
312
|
|
|
|
|
277
|
|
Occupancy and equipment
|
|
|
|
122
|
|
|
|
|
107
|
|
|
|
|
244
|
|
|
|
|
212
|
|
Advertising and market development
|
|
|
|
77
|
|
|
|
|
71
|
|
|
|
|
150
|
|
|
|
|
142
|
|
Communications
|
|
|
|
58
|
|
|
|
|
58
|
|
|
|
|
120
|
|
|
|
|
115
|
|
Depreciation and amortization
|
|
|
|
75
|
|
|
|
|
66
|
|
|
|
|
148
|
|
|
|
|
131
|
|
Regulatory fees and assessments
|
|
|
|
50
|
|
|
|
|
46
|
|
|
|
|
101
|
|
|
|
|
90
|
|
Other
|
|
|
|
72
|
|
|
|
|
66
|
|
|
|
|
161
|
|
|
|
|
128
|
|
Total expenses excluding interest
|
|
|
|
1,355
|
|
|
|
|
1,221
|
|
|
|
|
2,751
|
|
|
|
|
2,459
|
|
Income before taxes on income
|
|
|
|
1,131
|
|
|
|
|
909
|
|
|
|
|
2,133
|
|
|
|
|
1,752
|
|
Taxes on income
|
|
|
|
265
|
|
|
|
|
334
|
|
|
|
|
484
|
|
|
|
|
613
|
|
Net Income
|
|
|
|
866
|
|
|
|
|
575
|
|
|
|
|
1,649
|
|
|
|
|
1,139
|
|
Preferred stock dividends and other
|
|
|
|
53
|
|
|
|
|
45
|
|
|
|
|
90
|
|
|
|
|
84
|
|
Net Income Available to Common Stockholders
|
|
|
$
|
813
|
|
|
|
$
|
530
|
|
|
|
$
|
1,559
|
|
|
|
$
|
1,055
|
|
Weighted-Average Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
1,350
|
|
|
|
|
1,338
|
|
|
|
|
1,349
|
|
|
|
|
1,337
|
|
Diluted
|
|
|
|
1,364
|
|
|
|
|
1,351
|
|
|
|
|
1,363
|
|
|
|
|
1,351
|
|
Earnings Per Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
.60
|
|
|
|
$
|
.40
|
|
|
|
$
|
1.16
|
|
|
|
$
|
.79
|
|
Diluted
|
|
|
$
|
.60
|
|
|
|
$
|
.39
|
|
|
|
$
|
1.14
|
|
|
|
$
|
.78
|
|
Dividends Declared Per Common Share
|
|
|
$
|
.10
|
|
|
|
$
|
.08
|
|
|
|
$
|
.20
|
|
|
|
$
|
.16
|
|
|
|
THE CHARLES SCHWAB CORPORATION
|
Financial and Operating Highlights
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2-18 % change
|
|
|
2018
|
|
|
2017
|
|
|
|
vs.
|
|
|
vs.
|
|
|
Second
|
|
|
First
|
|
|
Fourth
|
|
|
Third
|
|
|
Second
|
(In millions, except per share amounts and as noted)
|
|
|
Q2-17
|
|
|
Q1-18
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest revenue
|
|
|
34
|
%
|
|
|
11
|
%
|
|
|
$
|
1,407
|
|
|
|
$
|
1,263
|
|
|
|
$
|
1,147
|
|
|
|
$
|
1,082
|
|
|
|
$
|
1,053
|
|
Asset management and administration fees
|
|
|
(4
|
)%
|
|
|
(4
|
)%
|
|
|
814
|
|
|
|
851
|
|
|
|
863
|
|
|
|
861
|
|
|
|
845
|
|
Trading revenue
|
|
|
15
|
%
|
|
|
(10
|
)%
|
|
|
180
|
|
|
|
201
|
|
|
|
154
|
|
|
|
151
|
|
|
|
157
|
|
Other
|
|
|
13
|
%
|
|
|
2
|
%
|
|
|
85
|
|
|
|
83
|
|
|
|
78
|
|
|
|
71
|
|
|
|
75
|
|
Total net revenues
|
|
|
17
|
%
|
|
|
4
|
%
|
|
|
2,486
|
|
|
|
2,398
|
|
|
|
2,242
|
|
|
|
2,165
|
|
|
|
2,130
|
|
Expenses Excluding Interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
12
|
%
|
|
|
(3
|
)%
|
|
|
745
|
|
|
|
770
|
|
|
|
711
|
|
|
|
662
|
|
|
|
663
|
|
Professional services
|
|
|
8
|
%
|
|
|
-
|
|
|
|
156
|
|
|
|
156
|
|
|
|
151
|
|
|
|
152
|
|
|
|
144
|
|
Occupancy and equipment
|
|
|
14
|
%
|
|
|
-
|
|
|
|
122
|
|
|
|
122
|
|
|
|
113
|
|
|
|
111
|
|
|
|
107
|
|
Advertising and market development
|
|
|
8
|
%
|
|
|
5
|
%
|
|
|
77
|
|
|
|
73
|
|
|
|
63
|
|
|
|
63
|
|
|
|
71
|
|
Communications
|
|
|
-
|
|
|
|
(6
|
)%
|
|
|
58
|
|
|
|
62
|
|
|
|
60
|
|
|
|
56
|
|
|
|
58
|
|
Depreciation and amortization
|
|
|
14
|
%
|
|
|
3
|
%
|
|
|
75
|
|
|
|
73
|
|
|
|
69
|
|
|
|
69
|
|
|
|
66
|
|
Regulatory fees and assessments
|
|
|
9
|
%
|
|
|
(2
|
)%
|
|
|
50
|
|
|
|
51
|
|
|
|
46
|
|
|
|
43
|
|
|
|
46
|
|
Other
|
|
|
9
|
%
|
|
|
(19
|
)%
|
|
|
72
|
|
|
|
89
|
|
|
|
76
|
|
|
|
64
|
|
|
|
66
|
|
Total expenses excluding interest
|
|
|
11
|
%
|
|
|
(3
|
)%
|
|
|
1,355
|
|
|
|
1,396
|
|
|
|
1,289
|
|
|
|
1,220
|
|
|
|
1,221
|
|
Income before taxes on income
|
|
|
24
|
%
|
|
|
13
|
%
|
|
|
1,131
|
|
|
|
1,002
|
|
|
|
953
|
|
|
|
945
|
|
|
|
909
|
|
Taxes on income
|
|
|
(21
|
)%
|
|
|
21
|
%
|
|
|
265
|
|
|
|
219
|
|
|
|
356
|
|
|
|
327
|
|
|
|
334
|
|
Net Income
|
|
|
51
|
%
|
|
|
11
|
%
|
|
|
$
|
866
|
|
|
|
$
|
783
|
|
|
|
$
|
597
|
|
|
|
$
|
618
|
|
|
|
$
|
575
|
|
Preferred stock dividends and other
|
|
|
18
|
%
|
|
|
43
|
%
|
|
|
53
|
|
|
|
37
|
|
|
|
47
|
|
|
|
43
|
|
|
|
45
|
|
Net Income Available to Common Stockholders
|
|
|
53
|
%
|
|
|
9
|
%
|
|
|
$
|
813
|
|
|
|
$
|
746
|
|
|
|
$
|
550
|
|
|
|
$
|
575
|
|
|
|
$
|
530
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
50
|
%
|
|
|
9
|
%
|
|
|
$
|
.60
|
|
|
|
$
|
.55
|
|
|
|
$
|
.41
|
|
|
|
$
|
.43
|
|
|
|
$
|
.40
|
|
Diluted
|
|
|
54
|
%
|
|
|
9
|
%
|
|
|
$
|
.60
|
|
|
|
$
|
.55
|
|
|
|
$
|
.41
|
|
|
|
$
|
.42
|
|
|
|
$
|
.39
|
|
Dividends declared per common share
|
|
|
25
|
%
|
|
|
-
|
|
|
|
$
|
.10
|
|
|
|
$
|
.10
|
|
|
|
$
|
.08
|
|
|
|
$
|
.08
|
|
|
|
$
|
.08
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1
|
%
|
|
|
-
|
|
|
|
1,350
|
|
|
|
1,347
|
|
|
|
1,343
|
|
|
|
1,339
|
|
|
|
1,338
|
|
Diluted
|
|
|
1
|
%
|
|
|
-
|
|
|
|
1,364
|
|
|
|
1,362
|
|
|
|
1,358
|
|
|
|
1,353
|
|
|
|
1,351
|
|
Performance Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax profit margin
|
|
|
|
|
|
|
|
|
45.5
|
%
|
|
|
41.8
|
%
|
|
|
42.5
|
%
|
|
|
43.6
|
%
|
|
|
42.7
|
%
|
Return on average common stockholders' equity (annualized) (1)
|
|
|
|
|
|
|
|
|
19
|
%
|
|
|
18
|
%
|
|
|
14
|
%
|
|
|
15
|
%
|
|
|
15
|
%
|
Financial Condition (at quarter end, in billions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and investments segregated
|
|
|
(41
|
)%
|
|
|
(14
|
)%
|
|
|
$
|
11.0
|
|
|
|
$
|
12.8
|
|
|
|
$
|
15.1
|
|
|
|
$
|
15.9
|
|
|
|
$
|
18.5
|
|
Receivables from brokerage clients - net
|
|
|
24
|
%
|
|
|
6
|
%
|
|
|
22.4
|
|
|
|
21.2
|
|
|
|
20.6
|
|
|
|
18.5
|
|
|
|
18.0
|
|
Bank loans - net
|
|
|
5
|
%
|
|
|
1
|
%
|
|
|
16.6
|
|
|
|
16.4
|
|
|
|
16.5
|
|
|
|
16.2
|
|
|
|
15.8
|
|
Total assets
|
|
|
19
|
%
|
|
|
5
|
%
|
|
|
261.9
|
|
|
|
248.3
|
|
|
|
243.3
|
|
|
|
230.7
|
|
|
|
220.6
|
|
Bank deposits
|
|
|
23
|
%
|
|
|
5
|
%
|
|
|
199.9
|
|
|
|
190.2
|
|
|
|
169.7
|
|
|
|
165.3
|
|
|
|
162.3
|
|
Payables to brokerage clients
|
|
|
(8
|
)%
|
|
|
(3
|
)%
|
|
|
30.3
|
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
31.5
|
|
|
|
33.0
|
|
Short-term borrowings
|
|
|
(100
|
)%
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15.0
|
|
|
|
5.0
|
|
|
|
.3
|
|
Long-term debt
|
|
|
66
|
%
|
|
|
41
|
%
|
|
|
5.8
|
|
|
|
4.1
|
|
|
|
4.8
|
|
|
|
3.3
|
|
|
|
3.5
|
|
Stockholders' equity
|
|
|
15
|
%
|
|
|
4
|
%
|
|
|
20.1
|
|
|
|
19.3
|
|
|
|
18.5
|
|
|
|
18.0
|
|
|
|
17.5
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent employees (at quarter end, in thousands)
|
|
|
11
|
%
|
|
|
3
|
%
|
|
|
18.7
|
|
|
|
18.2
|
|
|
|
17.6
|
|
|
|
17.3
|
|
|
|
16.9
|
|
Capital expenditures - purchases of equipment, office facilities,
and property, net (in millions)
|
|
|
47
|
%
|
|
|
(7
|
)%
|
|
|
$
|
126
|
|
|
|
$
|
135
|
|
|
|
$
|
141
|
|
|
|
$
|
118
|
|
|
|
$
|
86
|
|
Expenses excluding interest as a percentage of average client
assets (annualized)
|
|
|
|
|
|
|
|
|
0.16
|
%
|
|
|
0.17
|
%
|
|
|
0.16
|
%
|
|
|
0.16
|
%
|
|
|
0.16
|
%
|
Clients' Daily Average Trades (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue trades (2)
|
|
|
21
|
%
|
|
|
(19
|
)%
|
|
|
376
|
|
|
|
462
|
|
|
|
345
|
|
|
|
312
|
|
|
|
311
|
|
Asset-based trades (3)
|
|
|
45
|
%
|
|
|
7
|
%
|
|
|
149
|
|
|
|
139
|
|
|
|
120
|
|
|
|
137
|
|
|
|
103
|
|
Other trades (4)
|
|
|
2
|
%
|
|
|
(15
|
)%
|
|
|
179
|
|
|
|
211
|
|
|
|
163
|
|
|
|
184
|
|
|
|
175
|
|
Total
|
|
|
20
|
%
|
|
|
(13
|
)%
|
|
|
704
|
|
|
|
812
|
|
|
|
628
|
|
|
|
633
|
|
|
|
589
|
|
Average Revenue Per Revenue Trade (2)
|
|
|
(8
|
)%
|
|
|
1
|
%
|
|
|
$
|
7.30
|
|
|
|
$
|
7.24
|
|
|
|
$
|
7.33
|
|
|
|
$
|
7.74
|
|
|
|
$
|
7.96
|
|
|
|
|
(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
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
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
|
|
|
$
|
12,764
|
|
|
$
|
57
|
|
|
|
1.80
|
%
|
|
|
$
|
8,562
|
|
|
|
$
|
22
|
|
|
|
1.03
|
%
|
|
|
$
|
14,912
|
|
|
|
$
|
123
|
|
|
|
1.65
|
%
|
|
|
$
|
8,803
|
|
|
|
$
|
39
|
|
|
|
0.89
|
%
|
Cash and investments segregated
|
|
|
11,825
|
|
|
50
|
|
|
|
1.68
|
%
|
|
|
19,703
|
|
|
|
41
|
|
|
|
0.83
|
%
|
|
|
12,891
|
|
|
|
98
|
|
|
|
1.51
|
%
|
|
|
20,755
|
|
|
|
76
|
|
|
|
0.74
|
%
|
Broker-related receivables
|
|
|
378
|
|
|
2
|
|
|
|
1.58
|
%
|
|
|
435
|
|
|
|
1
|
|
|
|
0.68
|
%
|
|
|
333
|
|
|
|
3
|
|
|
|
1.47
|
%
|
|
|
412
|
|
|
|
1
|
|
|
|
0.62
|
%
|
Receivables from brokerage clients
|
|
|
19,775
|
|
|
204
|
|
|
|
4.09
|
%
|
|
|
15,827
|
|
|
|
138
|
|
|
|
3.50
|
%
|
|
|
19,326
|
|
|
|
383
|
|
|
|
3.95
|
%
|
|
|
15,537
|
|
|
|
264
|
|
|
|
3.43
|
%
|
Available for sale securities (1)
|
|
|
52,682
|
|
|
291
|
|
|
|
2.19
|
%
|
|
|
48,154
|
|
|
|
177
|
|
|
|
1.47
|
%
|
|
|
51,533
|
|
|
|
531
|
|
|
|
2.06
|
%
|
|
|
59,728
|
|
|
|
428
|
|
|
|
1.45
|
%
|
Held to maturity securities
|
|
|
129,825
|
|
|
812
|
|
|
|
2.49
|
%
|
|
|
107,378
|
|
|
|
600
|
|
|
|
2.24
|
%
|
|
|
125,641
|
|
|
|
1,533
|
|
|
|
2.44
|
%
|
|
|
95,439
|
|
|
|
1,085
|
|
|
|
2.29
|
%
|
Bank loans
|
|
|
16,530
|
|
|
138
|
|
|
|
3.32
|
%
|
|
|
15,701
|
|
|
|
115
|
|
|
|
2.94
|
%
|
|
|
16,493
|
|
|
|
268
|
|
|
|
3.25
|
%
|
|
|
15,615
|
|
|
|
225
|
|
|
|
2.91
|
%
|
Total interest-earning assets
|
|
|
243,779
|
|
|
1,554
|
|
|
|
2.54
|
%
|
|
|
215,760
|
|
|
|
1,094
|
|
|
|
2.03
|
%
|
|
|
241,129
|
|
|
|
2,939
|
|
|
|
2.43
|
%
|
|
|
216,289
|
|
|
|
2,118
|
|
|
|
1.97
|
%
|
Other interest revenue
|
|
|
|
|
36
|
|
|
|
|
|
|
|
|
|
33
|
|
|
|
|
|
|
|
|
|
72
|
|
|
|
|
|
|
|
|
|
64
|
|
|
|
|
Total interest-earning assets
|
|
|
$
|
243,779
|
|
|
$
|
1,590
|
|
|
|
2.60
|
%
|
|
|
$
|
215,760
|
|
|
|
$
|
1,127
|
|
|
|
2.10
|
%
|
|
|
$
|
241,129
|
|
|
|
$
|
3,011
|
|
|
|
2.49
|
%
|
|
|
$
|
216,289
|
|
|
|
$
|
2,182
|
|
|
|
2.03
|
%
|
Funding sources:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank deposits
|
|
|
$
|
193,029
|
|
|
$
|
117
|
|
|
|
0.24
|
%
|
|
|
$
|
163,711
|
|
|
|
$
|
30
|
|
|
|
0.07
|
%
|
|
|
$
|
185,052
|
|
|
|
$
|
181
|
|
|
|
0.20
|
%
|
|
|
$
|
163,696
|
|
|
|
$
|
49
|
|
|
|
0.06
|
%
|
Payables to brokerage clients
|
|
|
21,729
|
|
|
14
|
|
|
|
0.26
|
%
|
|
|
26,125
|
|
|
|
3
|
|
|
|
0.05
|
%
|
|
|
22,097
|
|
|
|
21
|
|
|
|
0.20
|
%
|
|
|
26,892
|
|
|
|
5
|
|
|
|
0.04
|
%
|
Short-term borrowings
|
|
|
1,429
|
|
|
7
|
|
|
|
1.94
|
%
|
|
|
1,393
|
|
|
|
3
|
|
|
|
0.86
|
%
|
|
|
6,770
|
|
|
|
54
|
|
|
|
1.59
|
%
|
|
|
1,363
|
|
|
|
5
|
|
|
|
0.74
|
%
|
Long-term debt
|
|
|
4,961
|
|
|
43
|
|
|
|
3.47
|
%
|
|
|
3,518
|
|
|
|
31
|
|
|
|
3.53
|
%
|
|
|
4,678
|
|
|
|
80
|
|
|
|
3.42
|
%
|
|
|
3,305
|
|
|
|
59
|
|
|
|
3.60
|
%
|
Total interest-bearing liabilities
|
|
|
221,148
|
|
|
181
|
|
|
|
0.33
|
%
|
|
|
194,747
|
|
|
|
67
|
|
|
|
0.14
|
%
|
|
|
218,597
|
|
|
|
336
|
|
|
|
0.31
|
%
|
|
|
195,256
|
|
|
|
118
|
|
|
|
0.12
|
%
|
Non-interest-bearing funding sources
|
|
|
22,631
|
|
|
|
|
|
|
|
|
21,013
|
|
|
|
|
|
|
|
|
|
22,532
|
|
|
|
|
|
|
|
|
|
21,033
|
|
|
|
|
|
|
|
Other interest expense
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
11
|
|
|
|
|
Total funding sources
|
|
|
$
|
243,779
|
|
|
$
|
183
|
|
|
|
0.30
|
%
|
|
|
$
|
215,760
|
|
|
|
$
|
74
|
|
|
|
0.14
|
%
|
|
|
$
|
241,129
|
|
|
|
$
|
341
|
|
|
|
0.28
|
%
|
|
|
$
|
216,289
|
|
|
|
$
|
129
|
|
|
|
0.12
|
%
|
Net interest revenue
|
|
|
|
|
$
|
1,407
|
|
|
|
2.30
|
%
|
|
|
|
|
|
$
|
1,053
|
|
|
|
1.96
|
%
|
|
|
|
|
|
$
|
2,670
|
|
|
|
2.21
|
%
|
|
|
|
|
|
$
|
2,053
|
|
|
|
1.91
|
%
|
(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
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
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
|
|
|
$
|
139,968
|
|
|
|
$
|
147
|
|
|
|
0.42
|
%
|
|
|
$
|
158,974
|
|
|
|
$
|
224
|
|
|
|
0.57
|
%
|
|
|
$
|
148,165
|
|
|
|
$
|
329
|
|
|
|
0.45
|
%
|
|
|
$
|
160,881
|
|
|
|
$
|
455
|
|
|
|
0.57
|
%
|
Fee waivers
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
(9
|
)
|
|
|
|
Schwab money market funds
|
|
|
139,968
|
|
|
|
147
|
|
|
|
0.42
|
%
|
|
|
158,974
|
|
|
|
223
|
|
|
|
0.56
|
%
|
|
|
148,165
|
|
|
|
329
|
|
|
|
0.45
|
%
|
|
|
160,881
|
|
|
|
446
|
|
|
|
0.56
|
%
|
Schwab equity and bond funds and ETFs
|
|
|
203,179
|
|
|
|
65
|
|
|
|
0.13
|
%
|
|
|
151,825
|
|
|
|
52
|
|
|
|
0.14
|
%
|
|
|
199,519
|
|
|
|
128
|
|
|
|
0.13
|
%
|
|
|
145,363
|
|
|
|
107
|
|
|
|
0.15
|
%
|
Mutual Fund OneSource ® and other non- transaction fee
funds
|
|
|
217,867
|
|
|
|
175
|
|
|
|
0.32
|
%
|
|
|
220,680
|
|
|
|
179
|
|
|
|
0.33
|
%
|
|
|
220,268
|
|
|
|
353
|
|
|
|
0.32
|
%
|
|
|
211,548
|
|
|
|
349
|
|
|
|
0.33
|
%
|
Other third-party mutual funds and ETFs (1)
|
|
|
325,061
|
|
|
|
71
|
|
|
|
0.09
|
%
|
|
|
271,503
|
|
|
|
59
|
|
|
|
0.09
|
%
|
|
|
322,391
|
|
|
|
141
|
|
|
|
0.09
|
%
|
|
|
272,065
|
|
|
|
117
|
|
|
|
0.09
|
%
|
Total mutual funds and ETFs (2)
|
|
|
$
|
886,075
|
|
|
|
458
|
|
|
|
0.21
|
%
|
|
|
$
|
802,982
|
|
|
|
513
|
|
|
|
0.26
|
%
|
|
|
$
|
890,343
|
|
|
|
951
|
|
|
|
0.22
|
%
|
|
|
$
|
789,857
|
|
|
|
1,019
|
|
|
|
0.26
|
%
|
Advice solutions (2) :
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee-based
|
|
|
$
|
225,879
|
|
|
|
283
|
|
|
|
0.50
|
%
|
|
|
$
|
199,879
|
|
|
|
256
|
|
|
|
0.51
|
%
|
|
|
$
|
225,320
|
|
|
|
565
|
|
|
|
0.51
|
%
|
|
|
$
|
195,823
|
|
|
|
500
|
|
|
|
0.51
|
%
|
Non-fee-based
|
|
|
62,109
|
|
|
|
-
|
|
|
|
-
|
|
|
|
46,882
|
|
|
|
-
|
|
|
|
-
|
|
|
|
60,964
|
|
|
|
-
|
|
|
|
-
|
|
|
|
44,801
|
|
|
|
-
|
|
|
|
-
|
|
Total advice solutions
|
|
|
$
|
287,988
|
|
|
|
283
|
|
|
|
0.39
|
%
|
|
|
$
|
246,761
|
|
|
|
256
|
|
|
|
0.41
|
%
|
|
|
$
|
286,284
|
|
|
|
565
|
|
|
|
0.40
|
%
|
|
|
$
|
240,624
|
|
|
|
500
|
|
|
|
0.42
|
%
|
Other balance-based fees (3)
|
|
|
387,727
|
|
|
|
62
|
|
|
|
0.06
|
%
|
|
|
406,307
|
|
|
|
64
|
|
|
|
0.06
|
%
|
|
|
406,869
|
|
|
|
128
|
|
|
|
0.06
|
%
|
|
|
397,523
|
|
|
|
125
|
|
|
|
0.06
|
%
|
Other (4)
|
|
|
|
|
|
11
|
|
|
|
|
|
|
|
|
|
12
|
|
|
|
|
|
|
|
|
|
21
|
|
|
|
|
|
|
|
|
|
24
|
|
|
|
|
Total asset management and administration fees
|
|
|
|
|
|
$
|
814
|
|
|
|
|
|
|
|
|
|
$
|
845
|
|
|
|
|
|
|
|
|
|
$
|
1,665
|
|
|
|
|
|
|
|
|
|
$
|
1,668
|
|
|
|
|
(1)
|
|
|
Includes Schwab ETF OneSource™.
|
(2)
|
|
|
Advice solutions include managed portfolios, specialized strategies,
and customized investment advice such as Schwab Private Client,
Schwab Managed Portfolios, Managed Account Select®,
Schwab Advisor Network®, Windhaven®
Strategies, ThomasPartners® Strategies, Schwab Index
Advantage® advised retirement plan balances, Schwab
Intelligent Portfolios®, Institutional Intelligent
Portfolios®, and Schwab Intelligent Advisory®,
launched in March 2017; as well as legacy non-fee advice solutions
including Schwab Advisor Source and certain retirement plan
balances. Beginning 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 the 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.
|
(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)
|
|
|
|
|
|
|
Q2-18 % Change
|
|
|
2018
|
|
|
2017
|
|
|
|
vs.
|
|
|
vs.
|
|
|
Second
|
|
|
First
|
|
|
Fourth
|
|
|
Third
|
|
|
Second
|
(In billions, at quarter end, except as noted)
|
|
|
Q2-17
|
|
|
Q1-18
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
Assets in client accounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schwab One®, certain cash equivalents and bank deposits
|
|
|
18
|
%
|
|
|
4
|
%
|
|
|
$
|
228.2
|
|
|
|
$
|
219.4
|
|
|
|
$
|
198.6
|
|
|
|
$
|
195.0
|
|
|
|
$
|
193.7
|
|
Proprietary mutual funds (Schwab Funds® and Laudus Funds®):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market funds (1)
|
|
|
(14
|
)%
|
|
|
(7
|
)%
|
|
|
|
134.2
|
|
|
|
|
145.0
|
|
|
|
|
163.6
|
|
|
|
|
159.2
|
|
|
|
|
156.2
|
|
Equity and bond funds (2)
|
|
|
18
|
%
|
|
|
4
|
%
|
|
|
|
86.6
|
|
|
|
|
83.4
|
|
|
|
|
82.5
|
|
|
|
|
77.3
|
|
|
|
|
73.3
|
|
Total proprietary mutual funds
|
|
|
(4
|
)%
|
|
|
(3
|
)%
|
|
|
|
220.8
|
|
|
|
|
228.4
|
|
|
|
|
246.1
|
|
|
|
|
236.5
|
|
|
|
|
229.5
|
|
Mutual Fund Marketplace® (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mutual Fund OneSource® and other non-transaction fee funds
|
|
|
(5
|
)%
|
|
|
(4
|
)%
|
|
|
|
212.5
|
|
|
|
|
221.6
|
|
|
|
|
225.2
|
|
|
|
|
221.2
|
|
|
|
|
224.7
|
|
Mutual fund clearing services
|
|
|
(23
|
)%
|
|
|
(2
|
)%
|
|
|
|
175.3
|
|
|
|
|
178.3
|
|
|
|
|
265.4
|
|
|
|
|
236.5
|
|
|
|
|
226.4
|
|
Other third-party mutual funds
|
|
|
18
|
%
|
|
|
3
|
%
|
|
|
|
716.1
|
|
|
|
|
693.4
|
|
|
|
|
682.6
|
|
|
|
|
652.5
|
|
|
|
|
609.0
|
|
Total Mutual Fund Marketplace
|
|
|
4
|
%
|
|
|
1
|
%
|
|
|
|
1,103.9
|
|
|
|
|
1,093.3
|
|
|
|
|
1,173.2
|
|
|
|
|
1,110.2
|
|
|
|
|
1,060.1
|
|
Total mutual fund assets
|
|
|
3
|
%
|
|
|
-
|
|
|
|
|
1,324.7
|
|
|
|
|
1,321.7
|
|
|
|
|
1,419.3
|
|
|
|
|
1,346.7
|
|
|
|
|
1,289.6
|
|
Exchange-traded funds (ETFs)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proprietary ETFs (2)
|
|
|
47
|
%
|
|
|
10
|
%
|
|
|
|
114.8
|
|
|
|
|
104.5
|
|
|
|
|
99.1
|
|
|
|
|
87.8
|
|
|
|
|
78.0
|
|
Schwab ETF OneSource™ (3)
|
|
|
24
|
%
|
|
|
3
|
%
|
|
|
|
30.8
|
|
|
|
|
29.8
|
|
|
|
|
28.7
|
|
|
|
|
26.6
|
|
|
|
|
24.9
|
|
Other third-party ETFs
|
|
|
19
|
%
|
|
|
2
|
%
|
|
|
|
322.1
|
|
|
|
|
314.7
|
|
|
|
|
308.8
|
|
|
|
|
286.7
|
|
|
|
|
270.2
|
|
Total ETF assets
|
|
|
25
|
%
|
|
|
4
|
%
|
|
|
|
467.7
|
|
|
|
|
449.0
|
|
|
|
|
436.6
|
|
|
|
|
401.1
|
|
|
|
|
373.1
|
|
Equity and other securities
|
|
|
15
|
%
|
|
|
4
|
%
|
|
|
|
1,121.7
|
|
|
|
|
1,075.9
|
|
|
|
|
1,080.0
|
|
|
|
|
1,016.9
|
|
|
|
|
971.4
|
|
Fixed income securities
|
|
|
20
|
%
|
|
|
6
|
%
|
|
|
|
275.1
|
|
|
|
|
258.8
|
|
|
|
|
245.6
|
|
|
|
|
238.4
|
|
|
|
|
229.3
|
|
Margin loans outstanding
|
|
|
24
|
%
|
|
|
5
|
%
|
|
|
|
(20.4
|
)
|
|
|
|
(19.4
|
)
|
|
|
|
(18.3
|
)
|
|
|
|
(16.9
|
)
|
|
|
|
(16.5
|
)
|
Total client assets
|
|
|
12
|
%
|
|
|
3
|
%
|
|
|
$
|
3,397.0
|
|
|
|
$
|
3,305.4
|
|
|
|
$
|
3,361.8
|
|
|
|
$
|
3,181.2
|
|
|
|
$
|
3,040.6
|
|
Client assets by business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Services
|
|
|
9
|
%
|
|
|
3
|
%
|
|
|
$
|
1,784.8
|
|
|
|
$
|
1,740.8
|
|
|
|
$
|
1,810.9
|
|
|
|
$
|
1,707.0
|
|
|
|
$
|
1,634.1
|
|
Advisor Services
|
|
|
15
|
%
|
|
|
3
|
%
|
|
|
|
1,612.2
|
|
|
|
|
1,564.6
|
|
|
|
|
1,550.9
|
|
|
|
|
1,474.2
|
|
|
|
|
1,406.5
|
|
Total client assets
|
|
|
12
|
%
|
|
|
3
|
%
|
|
|
$
|
3,397.0
|
|
|
|
$
|
3,305.4
|
|
|
|
$
|
3,361.8
|
|
|
|
$
|
3,181.2
|
|
|
|
$
|
3,040.6
|
|
Net growth in assets in client accounts (for the quarter
ended)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net new assets by business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Services (4)
|
|
|
(66
|
)%
|
|
|
127
|
%
|
|
|
$
|
13.7
|
|
|
|
$
|
(50.8
|
)
|
|
|
$
|
46.4
|
|
|
|
$
|
23.4
|
|
|
|
$
|
39.9
|
|
Advisor Services
|
|
|
23
|
%
|
|
|
(6
|
)%
|
|
|
|
30.2
|
|
|
|
|
32.0
|
|
|
|
|
31.7
|
|
|
|
|
28.2
|
|
|
|
|
24.6
|
|
Total net new assets
|
|
|
(32
|
)%
|
|
|
N/M
|
|
|
|
$
|
43.9
|
|
|
|
$
|
(18.8
|
)
|
|
|
$
|
78.1
|
|
|
|
$
|
51.6
|
|
|
|
$
|
64.5
|
|
Net market gains (losses)
|
|
|
(11
|
)%
|
|
|
N/M
|
|
|
|
|
47.7
|
|
|
|
|
(37.6
|
)
|
|
|
|
102.5
|
|
|
|
|
89.0
|
|
|
|
|
53.6
|
|
Net growth (decline)
|
|
|
(22
|
)%
|
|
|
N/M
|
|
|
|
$
|
91.6
|
|
|
|
$
|
(56.4
|
)
|
|
|
$
|
180.6
|
|
|
|
$
|
140.6
|
|
|
|
$
|
118.1
|
|
New brokerage accounts (in thousands, for the quarter ended)
|
|
|
8
|
%
|
|
|
(13
|
)%
|
|
|
|
384
|
|
|
|
|
443
|
|
|
|
|
386
|
|
|
|
|
336
|
|
|
|
|
357
|
|
Clients (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active Brokerage Accounts
|
|
|
7
|
%
|
|
|
2
|
%
|
|
|
|
11,202
|
|
|
|
|
11,005
|
|
|
|
|
10,755
|
|
|
|
|
10,565
|
|
|
|
|
10,487
|
|
Banking Accounts
|
|
|
9
|
%
|
|
|
2
|
%
|
|
|
|
1,250
|
|
|
|
|
1,221
|
|
|
|
|
1,197
|
|
|
|
|
1,176
|
|
|
|
|
1,143
|
|
Corporate Retirement Plan Participants
|
|
|
4
|
%
|
|
|
-
|
|
|
|
|
1,599
|
|
|
|
|
1,594
|
|
|
|
|
1,568
|
|
|
|
|
1,552
|
|
|
|
|
1,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Total client assets in purchased money market funds are located
at: http://www.aboutschwab.com/investor-relations.
|
|
(2)
|
|
|
Includes proprietary equity and bond funds and ETFs held on and off
the Schwab platform. As of June 30, 2018, off-platform equity and
bond funds and ETFs were $11.2 billion and $28.3 billion,
respectively.
|
|
(3)
|
|
|
Excludes all proprietary mutual funds and ETFs.
|
|
(4)
|
|
|
Second quarter of 2018 includes outflows of $9.5 billion from
certain mutual fund clearing services clients. First quarter of
2018 includes outflows of $84.4 billion from certain mutual fund
clearing services clients. 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.
|
|
N/M Not meaningful.
|
|
|
|
The Charles Schwab Corporation Monthly Activity Report For June
2018
|
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
|
Jun
|
|
|
Jul
|
|
|
Aug
|
|
|
Sep
|
|
|
Oct
|
|
|
Nov
|
|
|
Dec
|
|
|
Jan
|
|
|
Feb
|
|
|
Mar
|
|
|
Apr
|
|
|
May
|
|
|
Jun
|
|
|
Mo.
|
|
|
Yr.
|
Market Indices (at month end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dow Jones Industrial Average
|
|
|
21,350
|
|
|
|
21,891
|
|
|
|
21,948
|
|
|
|
22,405
|
|
|
|
23,377
|
|
|
|
24,272
|
|
|
|
24,719
|
|
|
|
26,149
|
|
|
|
25,029
|
|
|
|
24,103
|
|
|
|
24,163
|
|
|
|
24,416
|
|
|
|
24,271
|
|
|
|
(1
|
)%
|
|
|
14
|
%
|
Nasdaq Composite
|
|
|
6,140
|
|
|
|
6,348
|
|
|
|
6,429
|
|
|
|
6,496
|
|
|
|
6,728
|
|
|
|
6,874
|
|
|
|
6,903
|
|
|
|
7,411
|
|
|
|
7,273
|
|
|
|
7,063
|
|
|
|
7,066
|
|
|
|
7,442
|
|
|
|
7,510
|
|
|
|
1
|
%
|
|
|
22
|
%
|
Standard & Poor's 500
|
|
|
2,423
|
|
|
|
2,470
|
|
|
|
2,472
|
|
|
|
2,519
|
|
|
|
2,575
|
|
|
|
2,648
|
|
|
|
2,674
|
|
|
|
2,824
|
|
|
|
2,714
|
|
|
|
2,641
|
|
|
|
2,648
|
|
|
|
2,705
|
|
|
|
2,718
|
|
|
|
-
|
|
|
|
12
|
%
|
Client Assets (in billions of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Client Assets
|
|
|
2,995.8
|
|
|
|
3,040.6
|
|
|
|
3,099.9
|
|
|
|
3,122.3
|
|
|
|
3,181.2
|
|
|
|
3,256.5
|
|
|
|
3,318.8
|
|
|
|
3,361.8
|
|
|
|
3,480.5
|
|
|
|
3,328.8
|
|
|
|
3,305.4
|
|
|
|
3,312.1
|
|
|
|
3,378.1
|
|
|
|
|
|
|
|
Net New Assets (1)
|
|
|
37.7
|
|
|
|
15.8
|
|
|
|
18.0
|
|
|
|
17.8
|
|
|
|
35.4
|
|
|
|
15.7
|
|
|
|
27.0
|
|
|
|
11.5
|
|
|
|
(50.5
|
)
|
|
|
20.2
|
|
|
|
0.4
|
|
|
|
19.4
|
|
|
|
24.1
|
|
|
|
24
|
%
|
|
|
(36
|
)%
|
Net Market Gains (Losses)
|
|
|
7.1
|
|
|
|
43.5
|
|
|
|
4.4
|
|
|
|
41.1
|
|
|
|
39.9
|
|
|
|
46.6
|
|
|
|
16.0
|
|
|
|
107.2
|
|
|
|
(101.2
|
)
|
|
|
(43.6
|
)
|
|
|
6.3
|
|
|
|
46.6
|
|
|
|
(5.2
|
)
|
|
|
|
|
|
|
Total Client Assets (at month end)
|
|
|
3,040.6
|
|
|
|
3,099.9
|
|
|
|
3,122.3
|
|
|
|
3,181.2
|
|
|
|
3,256.5
|
|
|
|
3,318.8
|
|
|
|
3,361.8
|
|
|
|
3,480.5
|
|
|
|
3,328.8
|
|
|
|
3,305.4
|
|
|
|
3,312.1
|
|
|
|
3,378.1
|
|
|
|
3,397.0
|
|
|
|
1
|
%
|
|
|
12
|
%
|
Core Net New Assets (2)
|
|
|
22.1
|
|
|
|
15.8
|
|
|
|
18.0
|
|
|
|
17.8
|
|
|
|
19.2
|
|
|
|
15.7
|
|
|
|
27.0
|
|
|
|
18.7
|
|
|
|
21.3
|
|
|
|
25.6
|
|
|
|
9.9
|
|
|
|
19.4
|
|
|
|
24.1
|
|
|
|
24
|
%
|
|
|
9
|
%
|
Receiving Ongoing Advisory Services (at month end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Services
|
|
|
242.2
|
|
|
|
247.2
|
|
|
|
249.9
|
|
|
|
255.0
|
|
|
|
259.8
|
|
|
|
265.1
|
|
|
|
268.7
|
|
|
|
278.6
|
|
|
|
273.0
|
|
|
|
273.2
|
|
|
|
274.7
|
|
|
|
279.1
|
|
|
|
280.0
|
|
|
|
-
|
|
|
|
16
|
%
|
Advisor Services (3)
|
|
|
1,297.6
|
|
|
|
1,323.8
|
|
|
|
1,333.1
|
|
|
|
1,358.6
|
|
|
|
1,382.6
|
|
|
|
1,410.8
|
|
|
|
1,431.1
|
|
|
|
1,483.7
|
|
|
|
1,449.5
|
|
|
|
1,444.4
|
|
|
|
1,451.6
|
|
|
|
1,478.0
|
|
|
|
1,488.7
|
|
|
|
1
|
%
|
|
|
15
|
%
|
Client Accounts (at month end, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active Brokerage Accounts (4)
|
|
|
10,487
|
|
|
|
10,477
|
|
|
|
10,525
|
|
|
|
10,565
|
|
|
|
10,603
|
|
|
|
10,671
|
|
|
|
10,755
|
|
|
|
10,858
|
|
|
|
10,936
|
|
|
|
11,005
|
|
|
|
11,081
|
|
|
|
11,145
|
|
|
|
11,202
|
|
|
|
1
|
%
|
|
|
7
|
%
|
Banking Accounts
|
|
|
1,143
|
|
|
|
1,154
|
|
|
|
1,167
|
|
|
|
1,176
|
|
|
|
1,181
|
|
|
|
1,192
|
|
|
|
1,197
|
|
|
|
1,210
|
|
|
|
1,218
|
|
|
|
1,221
|
|
|
|
1,230
|
|
|
|
1,240
|
|
|
|
1,250
|
|
|
|
1
|
%
|
|
|
9
|
%
|
Corporate Retirement Plan Participants
|
|
|
1,540
|
|
|
|
1,540
|
|
|
|
1,550
|
|
|
|
1,552
|
|
|
|
1,556
|
|
|
|
1,564
|
|
|
|
1,568
|
|
|
|
1,580
|
|
|
|
1,580
|
|
|
|
1,594
|
|
|
|
1,599
|
|
|
|
1,599
|
|
|
|
1,599
|
|
|
|
-
|
|
|
|
4
|
%
|
Client Activity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Brokerage Accounts (in thousands)
|
|
|
117
|
|
|
|
107
|
|
|
|
123
|
|
|
|
106
|
|
|
|
117
|
|
|
|
122
|
|
|
|
147
|
|
|
|
165
|
|
|
|
138
|
|
|
|
140
|
|
|
|
141
|
|
|
|
122
|
|
|
|
121
|
|
|
|
(1
|
)%
|
|
|
3
|
%
|
Inbound Calls (in thousands)
|
|
|
1,736
|
|
|
|
1,683
|
|
|
|
1,823
|
|
|
|
1,709
|
|
|
|
1,988
|
|
|
|
1,804
|
|
|
|
2,046
|
|
|
|
2,303
|
|
|
|
2,005
|
|
|
|
2,145
|
|
|
|
2,034
|
|
|
|
1,852
|
|
|
|
1,814
|
|
|
|
(2
|
)%
|
|
|
4
|
%
|
Web Logins (in thousands)
|
|
|
43,790
|
|
|
|
42,236
|
|
|
|
47,290
|
|
|
|
39,639
|
|
|
|
51,454
|
|
|
|
50,583
|
|
|
|
54,486
|
|
|
|
64,488
|
|
|
|
60,830
|
|
|
|
58,906
|
|
|
|
55,980
|
|
|
|
56,234
|
|
|
|
56,491
|
|
|
|
-
|
|
|
|
29
|
%
|
Client Cash as a Percentage of Client Assets (5)
|
|
|
11.5
|
%
|
|
|
11.3
|
%
|
|
|
11.4
|
%
|
|
|
11.1
|
%
|
|
|
10.9
|
%
|
|
|
10.8
|
%
|
|
|
10.8
|
%
|
|
|
10.4
|
%
|
|
|
10.9
|
%
|
|
|
11.0
|
%
|
|
|
10.9
|
%
|
|
|
10.6
|
%
|
|
|
10.7
|
%
|
|
|
10 bp
|
|
|
(80) bp
|
Mutual Fund and Exchange-Traded Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Buys (Sells) (6, 7) (in millions of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Large Capitalization Stock
|
|
|
(63
|
)
|
|
|
(95
|
)
|
|
|
(1,683
|
)
|
|
|
(138
|
)
|
|
|
(51
|
)
|
|
|
85
|
|
|
|
1,023
|
|
|
|
496
|
|
|
|
715
|
|
|
|
(158
|
)
|
|
|
410
|
|
|
|
953
|
|
|
|
981
|
|
|
|
|
|
|
|
Small / Mid Capitalization Stock
|
|
|
(322
|
)
|
|
|
(139
|
)
|
|
|
(293
|
)
|
|
|
45
|
|
|
|
378
|
|
|
|
(144
|
)
|
|
|
274
|
|
|
|
(125
|
)
|
|
|
(167
|
)
|
|
|
130
|
|
|
|
359
|
|
|
|
753
|
|
|
|
1,195
|
|
|
|
|
|
|
|
International
|
|
|
3,631
|
|
|
|
2,675
|
|
|
|
1,705
|
|
|
|
1,549
|
|
|
|
1,913
|
|
|
|
2,627
|
|
|
|
1,852
|
|
|
|
4,306
|
|
|
|
2,685
|
|
|
|
1,546
|
|
|
|
809
|
|
|
|
372
|
|
|
|
(498
|
)
|
|
|
|
|
|
|
Specialized
|
|
|
647
|
|
|
|
236
|
|
|
|
279
|
|
|
|
465
|
|
|
|
655
|
|
|
|
58
|
|
|
|
424
|
|
|
|
1,569
|
|
|
|
187
|
|
|
|
326
|
|
|
|
122
|
|
|
|
(19
|
)
|
|
|
383
|
|
|
|
|
|
|
|
Hybrid
|
|
|
(340
|
)
|
|
|
142
|
|
|
|
(272
|
)
|
|
|
460
|
|
|
|
(118
|
)
|
|
|
(263
|
)
|
|
|
307
|
|
|
|
978
|
|
|
|
(88
|
)
|
|
|
529
|
|
|
|
(541
|
)
|
|
|
(241
|
)
|
|
|
(288
|
)
|
|
|
|
|
|
|
Taxable Bond
|
|
|
3,499
|
|
|
|
3,064
|
|
|
|
3,481
|
|
|
|
3,809
|
|
|
|
3,466
|
|
|
|
2,389
|
|
|
|
2,561
|
|
|
|
3,284
|
|
|
|
155
|
|
|
|
2,117
|
|
|
|
1,661
|
|
|
|
1,002
|
|
|
|
928
|
|
|
|
|
|
|
|
Tax-Free Bond
|
|
|
507
|
|
|
|
453
|
|
|
|
715
|
|
|
|
494
|
|
|
|
452
|
|
|
|
371
|
|
|
|
341
|
|
|
|
1,247
|
|
|
|
211
|
|
|
|
247
|
|
|
|
(113
|
)
|
|
|
449
|
|
|
|
588
|
|
|
|
|
|
|
|
Net Buy (Sell) Activity (in millions of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mutual Funds (6)
|
|
|
2,980
|
|
|
|
3,201
|
|
|
|
1,048
|
|
|
|
3,002
|
|
|
|
2,401
|
|
|
|
882
|
|
|
|
775
|
|
|
|
4,843
|
|
|
|
(417
|
)
|
|
|
1,976
|
|
|
|
(36
|
)
|
|
|
(88
|
)
|
|
|
555
|
|
|
|
|
|
|
|
Exchange-Traded Funds (7)
|
|
|
4,579
|
|
|
|
3,135
|
|
|
|
2,884
|
|
|
|
3,682
|
|
|
|
4,294
|
|
|
|
4,241
|
|
|
|
6,007
|
|
|
|
6,912
|
|
|
|
4,115
|
|
|
|
2,761
|
|
|
|
2,743
|
|
|
|
3,357
|
|
|
|
2,734
|
|
|
|
|
|
|
|
Money Market Funds
|
|
|
(1,260
|
)
|
|
|
1,022
|
|
|
|
2,105
|
|
|
|
(374
|
)
|
|
|
213
|
|
|
|
1,166
|
|
|
|
2,968
|
|
|
|
(5,730
|
)
|
|
|
(4,292
|
)
|
|
|
(9,100
|
)
|
|
|
(4,156
|
)
|
|
|
(2,245
|
)
|
|
|
(4,919
|
)
|
|
|
|
|
|
|
Average Interest-Earning Assets (8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of dollars)
|
|
|
214,709
|
|
|
|
212,108
|
|
|
|
214,458
|
|
|
|
216,472
|
|
|
|
219,658
|
|
|
|
223,292
|
|
|
|
228,540
|
|
|
|
234,619
|
|
|
|
239,922
|
|
|
|
241,049
|
|
|
|
239,833
|
|
|
|
242,584
|
|
|
|
249,432
|
|
|
|
3
|
%
|
|
|
16
|
%
|
(1)
|
|
|
April, March, February, and January 2018 include outflows of $9.5
billion, $5.4 billion, $71.8 billion, and $7.2 billion,
respectively, from certain mutual fund clearing services clients.
October and June 2017 include inflows of $16.2 billion and $15.6
billion, respectively, from certain mutual fund clearing services
clients.
|
(2)
|
|
|
Net new assets before significant one-time inflows or outflows, such
as acquisitions/divestitures or extraordinary flows (generally
greater than $10 billion) relating to a specific client. These flows
may span multiple reporting periods.
|
(3)
|
|
|
Excludes Retirement Business Services.
|
(4)
|
|
|
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.
|
(5)
|
|
|
Schwab One®, certain cash equivalents, bank deposits, and
money market fund balances as a percentage of total client assets.
|
(6)
|
|
|
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.
|
(7)
|
|
|
Represents the principal value of client ETF transactions handled by
Schwab, including transactions in proprietary ETFs.
|
(8)
|
|
|
Represents average total interest-earning assets on the Company's
balance sheet.
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180717005316/en/
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