Asset Management and Administration Fees and Net Interest Revenue Set
Quarterly Records
$37.0 Billion Core Net New Assets Set a Second Quarter Record
The Charles Schwab Corporation announced today that its net income for
the second quarter of 2015 was $353 million, up 17% from $302 million
for the first quarter of 2015, and up 9% from $324 million for the
second quarter of 2014. Net income for the six months ended June 30,
2015 was $655 million, up 1% from the year-earlier period. The company’s
financial results for the second quarter and first six months of 2015
include litigation proceeds of approximately $17 million (included in
Other revenue) relating to the company’s non-agency residential
mortgage-backed securities portfolio; this increased earnings per share
by $0.01.
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Three Months Ended
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Six Months Ended
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--June 30,--
|
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%
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--June 30,--
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%
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Financial Highlights
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2015
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2014
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Change
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2015
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2014
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Change
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Net revenues (in millions)
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$
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1,566
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$
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1,478
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|
|
6
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%
|
|
$
|
3,092
|
|
|
$
|
2,956
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|
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5
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%
|
|
Net income (in millions)
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$
|
353
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|
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$
|
324
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|
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9
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%
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|
$
|
655
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$
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650
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|
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1
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%
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Diluted earnings per common share
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$
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.25
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|
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$
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.23
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9
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%
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$
|
.47
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|
|
$
|
.47
|
|
|
-
|
|
|
Pre-tax profit margin
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36.2
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%
|
|
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35.3
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%
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|
|
|
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34.0
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%
|
|
|
35.3
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%
|
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|
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Return on average common stockholders’ equity (annualized)
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12
|
%
|
|
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12
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%
|
|
|
|
|
11
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%
|
|
|
13
|
%
|
|
|
|
|
|
|
|
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CEO Walt Bettinger said, “Our contemporary full-service investing model
continues to appeal to clients and prospects, and helped us achieve
strong quarterly operating results in the face of sideways equity
markets and continuing low interest rates. We gathered $37.0 billion of
core net new assets, the highest second quarter in our history, and
maintained a 6% annualized organic growth rate despite seasonal tax
outflows in April. Clients opened 280,000 new brokerage accounts, up 16%
year-over-year and another second quarter record. Total client assets
were $2.54 trillion at quarter-end, up 6% from a year ago. Client assets
under the guidance of a registered independent advisor or enrolled in
one of our retail or other advisory solutions also rose 6%
year-over-year, to $1.26 trillion. At month-end June, we were serving
9.6 million brokerage accounts, 1.0 million banking accounts, and
1.5 million retirement plan participants, up 4%, 6% and 10%,
respectively, from the second quarter of 2014.”
“We continue to drive growth by leveraging our ‘through clients’ eyes’
strategy and our scale to build products and services aimed at making
life better for investors,” Mr. Bettinger continued. “That scale is
evident across our unique in-house combination of brokerage, asset
management, and banking capabilities. Institutional Intelligent
Portfolios™ is the latest example of an offering that draws
from all these capabilities to create better solutions for our clients.
In this case, independent advisors now have access to an automated
investment management platform that enables them to reach new clients,
scale their businesses, and complement the wealth management services
and client experience that they already provide. Institutional
Intelligent Portfolios launched on June 23rd; advisors
are currently enrolling and customizing their programs. Schwab
Intelligent Portfolios™, our related automated investment
service for retail clients, got off to a strong start after its release
in the first quarter, and reached $3.0 billion in assets and over 39,000
accounts as of June 30th. In addition to launching these
new offerings, we remain committed to expanding existing platforms in
areas of strong client demand. We have broadened Schwab ETF OneSource™
to include over 200 commission-free ETFs as of month-end June. Investors
can access a wide range of funds from 13 providers and 66 Morningstar
categories with zero online commissions.”
CFO Joe Martinetto commented, “We delivered solid financial performance
in the second quarter, as our diversified revenue streams helped us work
through a mixed bag of environmental drivers and we stayed the course on
our planned spending. Interest rates picked up at least slightly across
the yield curve during the quarter, which helped limit pressure on our
net interest margin. In addition, our strong asset gathering fueled
sustained growth in interest-earning assets. As a result, net interest
revenue grew by 9% year-over-year and set a new quarterly record. Equity
market returns were in positive territory for much of the second quarter
but retreated as June came to a close. Even with limited help from
market valuations, asset management and administration fees grew 6% and
set another quarterly record due to the overall effectiveness of our
asset gathering, a bit of rate-related help on net money market fund
revenues, and ongoing client demand for our advisory solutions. While
client trading activity remained muted for much of the quarter, which
resulted in a 4% decline in trading revenue, the strength of our
non-trading revenues yielded 6% overall revenue growth from a year ago.
Our 4% increase in total expenses was right in line with our
expectations and helped us deliver a 9% increase in earnings and a
pre-tax profit margin of 36.2%. We are managing the levers under our
control to ensure flexibility across a range of environmental conditions
and protect our ability to drive profitable growth.”
Mr. Martinetto concluded, “We continue to maintain a healthy balance
sheet while taking advantage of our growing capital base to more
effectively monetize client cash balances. This quarter we completed a
bulk transfer of sweep balances from money market funds to Schwab Bank
totaling approximately $650 million. As we closed out the first half of
2015, our preliminary consolidated Tier 1 Leverage ratio was 6.9%.”
Business highlights for the second quarter (data
as of quarter-end unless otherwise noted):
Investor Services
-
New retail brokerage accounts for the quarter totaled approximately
176,000, up 19% year-over-year; total accounts were 6.7 million as of
June 30, 2015, up 2% year-over-year.
-
Held financial planning conversations with approximately 29,000
clients. Approximately 54,000 planning conversations have been held
year-to-date.
-
Launched Schwab’s Apple Watch™ app, giving clients
at-a-glance views of market headlines and personal watchlists, access
to stock quotes, and the ability to initiate equity or options trades
for quick completion on their iPhone.
-
Launched Apple® Touch ID™ capability for the
Schwab mobile app, allowing clients to log in to their accounts
quickly and securely using their fingerprint on any Apple Touch
ID-enabled device.
Advisor Services
-
Launched Institutional Intelligent Portfolios, an automated investment
management platform for RIAs; firms can create their own set of
portfolios choosing from over 450 ETFs across 28 asset classes and all
major fund families.
-
Held the annual EXPLORE® conference for the company’s top
independent advisor clients. Schwab leadership discussed Institutional
Intelligent Portfolios, RIA industry advocacy, and the Schwab
Executive Leadership Program for developing next-generation RIA firm
management.
Products and Infrastructure
-
For Charles Schwab Bank:
-
Balance sheet assets = $122.4 billion, up 18% year-over-year.
-
Outstanding mortgage and home equity loans = $11.1 billion,
comparable to a year ago.
-
First mortgage originations through its loan program during the
quarter = $1.1 billion.
-
Pledged Asset Line® balances = $2.9 billion, up 61%
year-over-year.
-
Delinquency, nonaccrual, and loss reserve ratios for Schwab Bank’s
loan portfolio = 0.19%, 0.22% and 0.26%, respectively, at
month-end June.
-
Schwab Bank High Yield Investor Checking® accounts =
814,000, with $12.2 billion in balances.
-
Client assets managed by Windhaven® totaled $14.9 billion,
down 22% from the second quarter of 2014.
-
Client assets managed by ThomasPartners® totaled
$7.1 billion, up 25% from the second quarter of 2014.
-
Client assets managed by Intelligent Portfolios (Schwab Intelligent
Portfolios, launched in March 2015, and Institutional Intelligent
Portfolios, launched in June 2015) totaled $3.0 billion, up
$2.2 billion from the first quarter of 2015.
-
Expanded Schwab ETF OneSource to offer four more ETFs; investors can
now trade 202 ETFs from 13 providers covering 66 Morningstar
Categories, including multi-currency, for $0 online trade commissions.
Supporting schedules are either attached or located at: http://www.aboutschwab.com/investor-relations/financial-reports.
Commentary from the CFO
Joe Martinetto, 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 16, 2015.
Forward-Looking Statements
This press release contains forward-looking statements relating to
business growth; profitable growth; maintaining a healthy balance sheet;
growth in the capital base; and monetization of client cash balances.
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, including
Intelligent Portfolios; client use of the company’s investment advisory
services and other products and services; the company’s ability to
manage expenses; general market conditions, including the level of
interest rates, equity valuations and trading activity; the company’s
ability to attract and retain clients and grow client
assets/relationships; competitive pressures on rates and fees; the level
of client assets, including cash balances; the company’s ability to
monetize client assets; capital needs and management; the impact of
changes in market conditions on money fund fee waivers, revenues,
expenses and pre-tax margin; the timing and amount of severance and
other costs related to reducing the company’s San Francisco footprint;
regulatory guidance; the level of field sales activity and related
incentive compensation; net interest margin; client trading activity;
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 325 offices and 9.6 million active
brokerage accounts, 1.5 million corporate retirement plan participants,
1.0 million banking accounts, and $2.54 trillion in client assets as of
June 30, 2015. Through its operating subsidiaries, the company provides
a full range of wealth management, securities brokerage, banking, money
management 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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|
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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,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset management and administration fees
|
|
$
|
670
|
|
|
$
|
632
|
|
|
$
|
1,314
|
|
|
$
|
1,243
|
|
|
Interest revenue
|
|
|
645
|
|
|
|
588
|
|
|
|
1,262
|
|
|
|
1,167
|
|
|
Interest expense
|
|
|
(33
|
)
|
|
|
(26
|
)
|
|
|
(62
|
)
|
|
|
(52
|
)
|
|
Net interest revenue
|
|
|
612
|
|
|
|
562
|
|
|
|
1,200
|
|
|
|
1,115
|
|
|
Trading revenue
|
|
|
203
|
|
|
|
212
|
|
|
|
430
|
|
|
|
459
|
|
|
Other
|
|
|
79
|
|
|
|
65
|
|
|
|
142
|
|
|
|
133
|
|
|
Provision for loan losses
|
|
|
2
|
|
|
|
7
|
|
|
|
6
|
|
|
|
6
|
|
|
Total net revenues
|
|
|
1,566
|
|
|
|
1,478
|
|
|
|
3,092
|
|
|
|
2,956
|
|
|
Expenses Excluding Interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
540
|
|
|
|
520
|
|
|
|
1,121
|
|
|
|
1,048
|
|
|
Professional services
|
|
|
112
|
|
|
|
112
|
|
|
|
226
|
|
|
|
218
|
|
|
Occupancy and equipment
|
|
|
85
|
|
|
|
80
|
|
|
|
168
|
|
|
|
160
|
|
|
Advertising and market development
|
|
|
62
|
|
|
|
65
|
|
|
|
131
|
|
|
|
128
|
|
|
Communications
|
|
|
59
|
|
|
|
57
|
|
|
|
117
|
|
|
|
113
|
|
|
Depreciation and amortization
|
|
|
55
|
|
|
|
48
|
|
|
|
109
|
|
|
|
96
|
|
|
Other
|
|
|
86
|
|
|
|
75
|
|
|
|
169
|
|
|
|
150
|
|
|
Total expenses excluding interest
|
|
|
999
|
|
|
|
957
|
|
|
|
2,041
|
|
|
|
1,913
|
|
|
Income before taxes on income
|
|
|
567
|
|
|
|
521
|
|
|
|
1,051
|
|
|
|
1,043
|
|
|
Taxes on income
|
|
|
214
|
|
|
|
197
|
|
|
|
396
|
|
|
|
393
|
|
|
Net Income
|
|
|
353
|
|
|
|
324
|
|
|
|
655
|
|
|
|
650
|
|
|
Preferred stock dividends and other
|
|
|
23
|
|
|
|
22
|
|
|
|
34
|
|
|
|
30
|
|
|
Net Income Available to Common Stockholders
|
|
$
|
330
|
|
|
$
|
302
|
|
|
$
|
621
|
|
|
$
|
620
|
|
|
Weighted-Average Common Shares Outstanding — Diluted
|
|
|
1,326
|
|
|
|
1,313
|
|
|
|
1,325
|
|
|
|
1,312
|
|
|
Earnings Per Common Share — Basic
|
|
$
|
.25
|
|
|
$
|
.23
|
|
|
$
|
.47
|
|
|
$
|
.47
|
|
|
Earnings Per Common Share — Diluted
|
|
$
|
.25
|
|
|
$
|
.23
|
|
|
$
|
.47
|
|
|
$
|
.47
|
|
|
|
|
See Note to Consolidated Statements of Income, Financial and
Operating Highlights, and Net Interest Revenue Information.
|
|
|
|
THE CHARLES SCHWAB CORPORATION
|
|
Financial and Operating Highlights
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Q2-15 % change
|
|
2015
|
|
2014
|
|
|
|
vs.
|
|
vs.
|
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
(In millions, except per share amounts and as noted)
|
|
Q2-14
|
|
Q1-15
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset management and administration fees
|
|
6
|
%
|
|
4
|
%
|
|
$
|
670
|
|
|
|
$
|
644
|
|
|
|
$
|
641
|
|
|
|
$
|
649
|
|
|
|
$
|
632
|
|
|
|
Net interest revenue
|
|
9
|
%
|
|
4
|
%
|
|
|
612
|
|
|
|
|
588
|
|
|
|
|
584
|
|
|
|
|
573
|
|
|
|
|
562
|
|
|
|
Trading revenue
|
|
(4
|
%)
|
|
(11
|
%)
|
|
|
203
|
|
|
|
|
227
|
|
|
|
|
239
|
|
|
|
|
209
|
|
|
|
|
212
|
|
|
|
Other (1)
|
|
22
|
%
|
|
25
|
%
|
|
|
79
|
|
|
|
|
63
|
|
|
|
|
90
|
|
|
|
|
119
|
|
|
|
|
65
|
|
|
|
Provision for loan losses
|
|
(71
|
%)
|
|
(50
|
%)
|
|
|
2
|
|
|
|
|
4
|
|
|
|
|
(3
|
)
|
|
|
|
1
|
|
|
|
|
7
|
|
|
|
Total net revenues
|
|
6
|
%
|
|
3
|
%
|
|
|
1,566
|
|
|
|
|
1,526
|
|
|
|
|
1,551
|
|
|
|
|
1,551
|
|
|
|
|
1,478
|
|
|
|
Expenses Excluding Interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
4
|
%
|
|
(7
|
%)
|
|
|
540
|
|
|
|
|
581
|
|
|
|
|
543
|
|
|
|
|
593
|
|
|
|
|
520
|
|
|
|
Professional services
|
|
-
|
|
|
(2
|
%)
|
|
|
112
|
|
|
|
|
114
|
|
|
|
|
122
|
|
|
|
|
117
|
|
|
|
|
112
|
|
|
|
Occupancy and equipment
|
|
6
|
%
|
|
2
|
%
|
|
|
85
|
|
|
|
|
83
|
|
|
|
|
82
|
|
|
|
|
82
|
|
|
|
|
80
|
|
|
|
Advertising and market development
|
|
(5
|
%)
|
|
(10
|
%)
|
|
|
62
|
|
|
|
|
69
|
|
|
|
|
58
|
|
|
|
|
59
|
|
|
|
|
65
|
|
|
|
Communications
|
|
4
|
%
|
|
2
|
%
|
|
|
59
|
|
|
|
|
58
|
|
|
|
|
55
|
|
|
|
|
55
|
|
|
|
|
57
|
|
|
|
Depreciation and amortization
|
|
15
|
%
|
|
2
|
%
|
|
|
55
|
|
|
|
|
54
|
|
|
|
|
54
|
|
|
|
|
49
|
|
|
|
|
48
|
|
|
|
Other
|
|
15
|
%
|
|
4
|
%
|
|
|
86
|
|
|
|
|
83
|
|
|
|
|
83
|
|
|
|
|
78
|
|
|
|
|
75
|
|
|
|
Total expenses excluding interest
|
|
4
|
%
|
|
(4
|
%)
|
|
|
999
|
|
|
|
|
1,042
|
|
|
|
|
997
|
|
|
|
|
1,033
|
|
|
|
|
957
|
|
|
|
Income before taxes on income
|
|
9
|
%
|
|
17
|
%
|
|
|
567
|
|
|
|
|
484
|
|
|
|
|
554
|
|
|
|
|
518
|
|
|
|
|
521
|
|
|
|
Taxes on income
|
|
9
|
%
|
|
18
|
%
|
|
|
214
|
|
|
|
|
182
|
|
|
|
|
204
|
|
|
|
|
197
|
|
|
|
|
197
|
|
|
|
Net Income
|
|
9
|
%
|
|
17
|
%
|
|
$
|
353
|
|
|
|
$
|
302
|
|
|
|
$
|
350
|
|
|
|
$
|
321
|
|
|
|
$
|
324
|
|
|
|
Preferred stock dividends and other
|
|
5
|
%
|
|
109
|
%
|
|
|
23
|
|
|
|
|
11
|
|
|
|
|
21
|
|
|
|
|
9
|
|
|
|
|
22
|
|
|
|
Net Income Available to Common Stockholders
|
|
9
|
%
|
|
13
|
%
|
|
$
|
330
|
|
|
|
$
|
291
|
|
|
|
$
|
329
|
|
|
|
$
|
312
|
|
|
|
$
|
302
|
|
|
|
Basic earnings per common share
|
|
9
|
%
|
|
14
|
%
|
|
$
|
.25
|
|
|
|
$
|
.22
|
|
|
|
$
|
.25
|
|
|
|
$
|
.24
|
|
|
|
$
|
.23
|
|
|
|
Diluted earnings per common share
|
|
9
|
%
|
|
14
|
%
|
|
$
|
.25
|
|
|
|
$
|
.22
|
|
|
|
$
|
.25
|
|
|
|
$
|
.24
|
|
|
|
$
|
.23
|
|
|
|
Dividends declared per common share
|
|
-
|
|
|
-
|
|
|
$
|
.06
|
|
|
|
$
|
.06
|
|
|
|
$
|
.06
|
|
|
|
$
|
.06
|
|
|
|
$
|
.06
|
|
|
|
Weighted-average common shares outstanding - diluted
|
|
1
|
%
|
|
-
|
|
|
|
1,326
|
|
|
|
|
1,323
|
|
|
|
|
1,320
|
|
|
|
|
1,316
|
|
|
|
|
1,313
|
|
|
|
Performance Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax profit margin
|
|
|
|
|
|
|
36.2
|
|
%
|
|
|
31.7
|
|
%
|
|
|
35.7
|
|
%
|
|
|
33.4
|
|
%
|
|
|
35.3
|
|
%
|
|
Return on average common stockholders’ equity (annualized) (2)
|
|
|
|
|
|
|
12
|
|
%
|
|
|
10
|
|
%
|
|
|
12
|
|
%
|
|
|
12
|
|
%
|
|
|
12
|
|
%
|
|
Financial Condition (at quarter end, in billions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and investments segregated
|
|
(6
|
%)
|
|
(8
|
%)
|
|
$
|
17.9
|
|
|
|
$
|
19.4
|
|
|
|
$
|
20.8
|
|
|
|
$
|
19.9
|
|
|
|
$
|
19.1
|
|
|
|
Receivables from brokerage clients
|
|
13
|
%
|
|
4
|
%
|
|
$
|
16.6
|
|
|
|
$
|
16.0
|
|
|
|
$
|
15.7
|
|
|
|
$
|
15.4
|
|
|
|
$
|
14.7
|
|
|
|
Bank loans
|
|
9
|
%
|
|
3
|
%
|
|
$
|
14.0
|
|
|
|
$
|
13.6
|
|
|
|
$
|
13.4
|
|
|
|
$
|
13.1
|
|
|
|
$
|
12.9
|
|
|
|
Total assets
|
|
14
|
%
|
|
2
|
%
|
|
$
|
163.6
|
|
|
|
$
|
160.2
|
|
|
|
$
|
154.6
|
|
|
|
$
|
147.4
|
|
|
|
$
|
143.4
|
|
|
|
Bank deposits
|
|
18
|
%
|
|
3
|
%
|
|
$
|
112.9
|
|
|
|
$
|
109.5
|
|
|
|
$
|
102.8
|
|
|
|
$
|
97.3
|
|
|
|
$
|
95.7
|
|
|
|
Payables to brokerage clients
|
|
-
|
|
|
-
|
|
|
$
|
31.5
|
|
|
|
$
|
31.6
|
|
|
|
$
|
34.3
|
|
|
|
$
|
33.1
|
|
|
|
$
|
31.5
|
|
|
|
Long-term debt
|
|
53
|
%
|
|
-
|
|
|
$
|
2.9
|
|
|
|
$
|
2.9
|
|
|
|
$
|
1.9
|
|
|
|
$
|
1.9
|
|
|
|
$
|
1.9
|
|
|
|
Stockholders’ equity
|
|
11
|
%
|
|
2
|
%
|
|
$
|
12.4
|
|
|
|
$
|
12.2
|
|
|
|
$
|
11.8
|
|
|
|
$
|
11.5
|
|
|
|
$
|
11.2
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent employees (at quarter end, in thousands)
|
|
6
|
%
|
|
-
|
|
|
|
14.9
|
|
|
|
|
14.9
|
|
|
|
|
14.6
|
|
|
|
|
14.3
|
|
|
|
|
14.1
|
|
|
|
Capital expenditures - purchases of equipment, office facilities,
and property, net (in millions)
|
|
(24
|
%)
|
|
26
|
%
|
|
$
|
77
|
|
|
|
$
|
61
|
|
|
|
$
|
90
|
|
|
|
$
|
146
|
|
|
|
$
|
101
|
|
|
|
Expenses excluding interest as a percentage of average client
assets (annualized)
|
|
|
|
|
|
|
0.16
|
|
%
|
|
|
0.17
|
|
%
|
|
|
0.17
|
|
%
|
|
|
0.18
|
|
%
|
|
|
0.16
|
|
%
|
|
Clients’ Daily Average Trades (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue trades (3)
|
|
(3
|
%)
|
|
(15
|
%)
|
|
|
267
|
|
|
|
|
313
|
|
|
|
|
315
|
|
|
|
|
269
|
|
|
|
|
274
|
|
|
|
Asset-based trades (4)
|
|
4
|
%
|
|
(11
|
%)
|
|
|
78
|
|
|
|
|
88
|
|
|
|
|
80
|
|
|
|
|
64
|
|
|
|
|
75
|
|
|
|
Other trades (5)
|
|
11
|
%
|
|
(18
|
%)
|
|
|
149
|
|
|
|
|
181
|
|
|
|
|
169
|
|
|
|
|
136
|
|
|
|
|
134
|
|
|
|
Total
|
|
2
|
%
|
|
(15
|
%)
|
|
|
494
|
|
|
|
|
582
|
|
|
|
|
564
|
|
|
|
|
469
|
|
|
|
|
483
|
|
|
|
Average Revenue Per Revenue Trade (3)
|
|
(2
|
%)
|
|
-
|
|
|
$
|
11.97
|
|
|
|
$
|
11.98
|
|
|
|
$
|
12.04
|
|
|
|
$
|
12.24
|
|
|
|
$
|
12.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Certain prior-period amounts have been reclassified to conform
to the 2015 presentation.
|
|
(1)
|
|
Includes net impairment losses on securities of $(1) million in the
third quarter of 2014.
|
|
(2)
|
|
Return on average common stockholders’ equity is calculated using
net income available to common stockholders divided by average
common stockholders’ equity.
|
|
(3)
|
|
Includes all client trades that generate either commission revenue
or revenue from principal markups (i.e., fixed income); also known
as DART.
|
|
(4)
|
|
Includes eligible trades executed by clients who participate in one
or more of the Company’s asset-based pricing relationships.
|
|
(5)
|
|
Includes all commission-free trades, including Schwab Mutual Fund
OneSource® funds and ETFs, and other proprietary products.
|
|
|
|
|
|
See Note to Consolidated Statements of Income, Financial and
Operating Highlights, and Net Interest Revenue Information.
|
|
|
|
THE CHARLES SCHWAB CORPORATION
|
|
Net Interest Revenue Information
|
|
(In millions)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
|
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
|
|
$
|
8,540
|
|
$
|
6
|
|
0.28
|
%
|
|
$
|
6,001
|
|
$
|
3
|
|
0.20
|
%
|
|
|
$
|
8,959
|
|
$
|
11
|
|
0.25
|
%
|
|
$
|
6,349
|
|
$
|
7
|
|
0.22
|
%
|
|
Cash and investments segregated
|
|
|
18,265
|
|
|
7
|
|
0.15
|
%
|
|
|
19,614
|
|
|
6
|
|
0.12
|
%
|
|
|
|
18,884
|
|
|
13
|
|
0.14
|
%
|
|
|
20,611
|
|
|
12
|
|
0.12
|
%
|
|
Broker-related receivables (1)
|
|
|
261
|
|
|
-
|
|
0.02
|
%
|
|
|
312
|
|
|
-
|
|
-
|
|
|
|
|
271
|
|
|
-
|
|
0.06
|
%
|
|
|
303
|
|
|
-
|
|
0.15
|
%
|
|
Receivables from brokerage clients
|
|
|
15,105
|
|
|
125
|
|
3.32
|
%
|
|
|
13,634
|
|
|
120
|
|
3.53
|
%
|
|
|
|
14,763
|
|
|
244
|
|
3.33
|
%
|
|
|
13,397
|
|
|
236
|
|
3.55
|
%
|
|
Securities available for sale (2)
|
|
|
61,194
|
|
|
153
|
|
1.00
|
%
|
|
|
52,564
|
|
|
138
|
|
1.05
|
%
|
|
|
|
59,315
|
|
|
295
|
|
1.00
|
%
|
|
|
52,269
|
|
|
278
|
|
1.07
|
%
|
|
Securities held to maturity
|
|
|
36,458
|
|
|
227
|
|
2.50
|
%
|
|
|
32,043
|
|
|
206
|
|
2.58
|
%
|
|
|
|
35,673
|
|
|
445
|
|
2.52
|
%
|
|
|
31,448
|
|
|
405
|
|
2.60
|
%
|
|
Bank loans
|
|
|
13,866
|
|
|
91
|
|
2.63
|
%
|
|
|
12,775
|
|
|
88
|
|
2.76
|
%
|
|
|
|
13,701
|
|
|
181
|
|
2.66
|
%
|
|
|
12,661
|
|
|
175
|
|
2.79
|
%
|
|
Total interest-earning assets
|
|
|
153,689
|
|
|
609
|
|
1.59
|
%
|
|
|
136,943
|
|
|
561
|
|
1.64
|
%
|
|
|
|
151,566
|
|
|
1,189
|
|
1.58
|
%
|
|
|
137,038
|
|
|
1,113
|
|
1.64
|
%
|
|
Other interest revenue
|
|
|
|
|
|
36
|
|
|
|
|
|
|
|
27
|
|
|
|
|
|
|
|
|
73
|
|
|
|
|
|
|
|
54
|
|
|
|
Total interest-earning assets
|
|
$
|
153,689
|
|
$
|
645
|
|
1.68
|
%
|
|
$
|
136,943
|
|
$
|
588
|
|
1.72
|
%
|
|
|
$
|
151,566
|
|
$
|
1,262
|
|
1.68
|
%
|
|
$
|
137,038
|
|
$
|
1,167
|
|
1.72
|
%
|
|
Funding sources:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank deposits
|
|
$
|
110,159
|
|
$
|
6
|
|
0.02
|
%
|
|
$
|
94,938
|
|
$
|
8
|
|
0.03
|
%
|
|
|
$
|
108,008
|
|
$
|
14
|
|
0.03
|
%
|
|
$
|
94,360
|
|
$
|
15
|
|
0.03
|
%
|
|
Payables to brokerage clients (1)
|
|
|
25,138
|
|
|
-
|
|
0.01
|
%
|
|
|
26,352
|
|
|
-
|
|
0.01
|
%
|
|
|
|
25,602
|
|
|
1
|
|
0.01
|
%
|
|
|
26,779
|
|
|
1
|
|
0.01
|
%
|
|
Long-term debt
|
|
|
2,901
|
|
|
24
|
|
3.32
|
%
|
|
|
1,901
|
|
|
18
|
|
3.80
|
%
|
|
|
|
2,527
|
|
|
43
|
|
3.43
|
%
|
|
|
1,902
|
|
|
36
|
|
3.82
|
%
|
|
Total interest-bearing liabilities
|
|
|
138,198
|
|
|
30
|
|
0.09
|
%
|
|
|
123,191
|
|
|
26
|
|
0.08
|
%
|
|
|
|
136,137
|
|
|
58
|
|
0.09
|
%
|
|
|
123,041
|
|
|
52
|
|
0.09
|
%
|
|
Non-interest-bearing funding sources
|
|
|
15,491
|
|
|
|
|
|
|
|
13,752
|
|
|
|
|
|
|
|
|
15,429
|
|
|
|
|
|
|
|
13,997
|
|
|
|
|
|
|
Other interest expense (1,3)
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
-
|
|
|
|
Total funding sources
|
|
$
|
153,689
|
|
$
|
33
|
|
0.08
|
%
|
|
$
|
136,943
|
|
$
|
26
|
|
0.07
|
%
|
|
|
$
|
151,566
|
|
$
|
62
|
|
0.08
|
%
|
|
$
|
137,038
|
|
$
|
52
|
|
0.08
|
%
|
|
Net interest revenue
|
|
|
|
|
$
|
612
|
|
1.60
|
%
|
|
|
|
|
$
|
562
|
|
1.65
|
%
|
|
|
|
|
|
$
|
1,200
|
|
1.60
|
%
|
|
|
|
|
$
|
1,115
|
|
1.64
|
%
|
|
(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)
|
|
Includes the impact of capitalizing interest on building
construction and software development.
|
|
|
|
|
|
See Note to Consolidated Statements of Income, Financial and
Operating Highlights, and Net Interest Revenue Information.
|
|
|
|
Note to Consolidated Statements of Income, Financial and
Operating Highlights,
|
|
and Net Interest Revenue Information
|
|
(Unaudited)
|
|
|
|
The Company
|
|
The consolidated statements of income, financial and operating
highlights, and net interest revenue information include The
Charles Schwab Corporation (CSC) and its majority-owned
subsidiaries (collectively referred to as the Company), including
Charles Schwab & Co., Inc. and Charles Schwab Bank. The
consolidated statements of income, financial and operating
highlights, and net interest revenue information should be read in
conjunction with the consolidated financial statements and notes
thereto included in the Company’s Annual Report on Form 10-K for
the year ended December 31, 2014.
|
|
|
|
**********
|
|
|
|
THE CHARLES SCHWAB CORPORATION
|
|
Asset Management and Administration Fees Information
|
|
(In millions)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
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
|
|
$
|
157,418
|
|
$
|
230
|
|
|
|
0.59
|
%
|
|
$
|
162,683
|
|
$
|
235
|
|
|
0.58
|
%
|
|
|
$
|
161,411
|
|
$
|
469
|
|
|
0.59
|
%
|
|
$
|
164,868
|
|
$
|
474
|
|
|
0.58
|
%
|
|
Fee waivers
|
|
|
|
|
|
(168
|
)
|
|
|
|
|
|
|
|
|
(183
|
)
|
|
|
|
|
|
|
|
|
(353
|
)
|
|
|
|
|
|
|
|
(368
|
)
|
|
|
|
Schwab money market funds
|
|
|
157,418
|
|
|
62
|
|
|
|
0.16
|
%
|
|
|
162,683
|
|
|
52
|
|
|
0.13
|
%
|
|
|
|
161,411
|
|
|
116
|
|
|
0.14
|
%
|
|
|
164,868
|
|
|
106
|
|
|
0.13
|
%
|
|
Schwab equity and bond funds (1)
|
|
|
103,986
|
|
|
56
|
|
|
|
0.22
|
%
|
|
|
80,527
|
|
|
47
|
|
|
0.23
|
%
|
|
|
|
100,556
|
|
|
108
|
|
|
0.22
|
%
|
|
|
78,058
|
|
|
92
|
|
|
0.24
|
%
|
|
Mutual Fund OneSource ® (2)
|
|
|
245,694
|
|
|
200
|
|
|
|
0.33
|
%
|
|
|
247,107
|
|
|
204
|
|
|
0.33
|
%
|
|
|
|
244,333
|
|
|
397
|
|
|
0.33
|
%
|
|
|
244,601
|
|
|
401
|
|
|
0.33
|
%
|
|
Total mutual funds (3)
|
|
$
|
507,098
|
|
|
318
|
|
|
|
0.25
|
%
|
|
$
|
490,317
|
|
|
303
|
|
|
0.25
|
%
|
|
|
$
|
506,300
|
|
|
621
|
|
|
0.25
|
%
|
|
$
|
487,527
|
|
|
599
|
|
|
0.25
|
%
|
|
Advice solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee-based
|
|
$
|
174,657
|
|
|
228
|
|
|
|
0.52
|
%
|
|
$
|
156,197
|
|
|
209
|
|
|
0.54
|
%
|
|
|
$
|
172,405
|
|
|
448
|
|
|
0.52
|
%
|
|
$
|
153,065
|
|
|
408
|
|
|
0.54
|
%
|
|
Intelligent Portfolios
|
|
|
2,159
|
|
|
-
|
|
|
|
-
|
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|
|
1,725
|
|
|
-
|
|
|
-
|
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
Legacy Non-Fee
|
|
|
16,783
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
15,595
|
|
|
N/A
|
|
|
N/A
|
|
|
|
|
16,815
|
|
|
N/A
|
|
|
N/A
|
|
|
|
15,564
|
|
|
N/A
|
|
|
N/A
|
|
|
Total advice solutions
|
|
$
|
193,599
|
|
|
228
|
|
|
|
0.47
|
%
|
|
$
|
171,792
|
|
|
209
|
|
|
0.49
|
%
|
|
|
$
|
190,945
|
|
|
448
|
|
|
0.47
|
%
|
|
$
|
168,629
|
|
|
408
|
|
|
0.49
|
%
|
|
Other (2,4)
|
|
|
|
|
|
124
|
|
|
|
|
|
|
|
|
|
120
|
|
|
|
|
|
|
|
|
|
245
|
|
|
|
|
|
|
|
|
236
|
|
|
|
|
Total asset management and administration fees
|
|
|
|
|
$
|
670
|
|
|
|
|
|
|
|
|
$
|
632
|
|
|
|
|
|
|
|
|
$
|
1,314
|
|
|
|
|
|
|
|
$
|
1,243
|
|
|
|
|
(1)
|
|
Includes Schwab Exchange-traded Funds.
|
|
(2)
|
|
Beginning in the second quarter of 2015, certain Mutual Fund
OneSource balances were reclassified to Other third-party mutual
funds. Related revenues have been reclassified to Other asset
management and administration fees. Prior period information has
been recast to reflect this change.
|
|
(3)
|
|
Beginning in the second quarter of 2015, Fee-based, Intelligent
Portfolios and Legacy Non-Fee advice solutions are presented
separately. Prior period information has been recast to reflect this
change. 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, Thomas Partners 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 three categories of mutual funds
listed above.
|
|
(4)
|
|
Includes various asset-based fees, such as trust fees, 401(k)
recordkeeping fees, and mutual fund clearing fees and other service
fees.
|
|
N/A
|
|
Not applicable.
|
|
|
|
|
|
THE CHARLES SCHWAB CORPORATION
|
|
Growth in Client Assets and Accounts
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Q2-15 % Change
|
|
2015
|
|
2014
|
|
|
|
vs.
|
|
vs.
|
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
(In billions, at quarter end, except as noted)
|
|
Q2-14
|
|
Q1-15
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Assets in client accounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schwab One®, certain cash equivalents and bank deposits
|
|
13
|
%
|
|
2
|
%
|
|
$
|
143.0
|
|
|
$
|
140.0
|
|
|
$
|
136.0
|
|
|
$
|
129.7
|
|
|
$
|
126.5
|
|
|
Proprietary mutual funds (Schwab Funds® and Laudus Funds®):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market funds
|
|
(3
|
%)
|
|
(4
|
%)
|
|
|
155.6
|
|
|
|
162.5
|
|
|
|
167.9
|
|
|
|
164.7
|
|
|
|
160.0
|
|
|
Equity and bond funds
|
|
8
|
%
|
|
-
|
|
|
|
64.1
|
|
|
|
64.1
|
|
|
|
61.5
|
|
|
|
59.1
|
|
|
|
59.1
|
|
|
Total proprietary mutual funds
|
|
-
|
|
|
(3
|
%)
|
|
|
219.7
|
|
|
|
226.6
|
|
|
|
229.4
|
|
|
|
223.8
|
|
|
|
219.1
|
|
|
Mutual Fund Marketplace® (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mutual Fund OneSource® (2)
|
|
(6
|
%)
|
|
(2
|
%)
|
|
|
233.2
|
|
|
|
239.1
|
|
|
|
236.2
|
|
|
|
238.8
|
|
|
|
247.5
|
|
|
Mutual fund clearing services
|
|
17
|
%
|
|
11
|
%
|
|
|
188.9
|
|
|
|
170.6
|
|
|
|
164.7
|
|
|
|
166.3
|
|
|
|
161.1
|
|
|
Other third-party mutual funds (2)
|
|
7
|
%
|
|
2
|
%
|
|
|
519.4
|
|
|
|
508.3
|
|
|
|
486.2
|
|
|
|
479.4
|
|
|
|
487.6
|
|
|
Total Mutual Fund Marketplace
|
|
5
|
%
|
|
3
|
%
|
|
|
941.5
|
|
|
|
918.0
|
|
|
|
887.1
|
|
|
|
884.5
|
|
|
|
896.2
|
|
|
Total mutual fund assets
|
|
4
|
%
|
|
1
|
%
|
|
|
1,161.2
|
|
|
|
1,144.6
|
|
|
|
1,116.5
|
|
|
|
1,108.3
|
|
|
|
1,115.3
|
|
|
Exchange-traded funds (ETFs)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proprietary ETFs
|
|
60
|
%
|
|
11
|
%
|
|
|
34.3
|
|
|
|
31.0
|
|
|
|
26.9
|
|
|
|
22.9
|
|
|
|
21.5
|
|
|
ETF OneSource™ (1)
|
|
56
|
%
|
|
2
|
%
|
|
|
16.5
|
|
|
|
16.1
|
|
|
|
14.7
|
|
|
|
14.1
|
|
|
|
10.6
|
|
|
Other third-party ETFs
|
|
9
|
%
|
|
1
|
%
|
|
|
207.4
|
|
|
|
205.3
|
|
|
|
194.7
|
|
|
|
184.2
|
|
|
|
190.1
|
|
|
Total ETF assets
|
|
16
|
%
|
|
2
|
%
|
|
|
258.2
|
|
|
|
252.4
|
|
|
|
236.3
|
|
|
|
221.2
|
|
|
|
222.2
|
|
|
Equity and other securities
|
|
6
|
%
|
|
(1
|
%)
|
|
|
815.1
|
|
|
|
820.9
|
|
|
|
800.4
|
|
|
|
771.6
|
|
|
|
766.5
|
|
|
Fixed income securities
|
|
(2
|
%)
|
|
-
|
|
|
|
181.1
|
|
|
|
181.2
|
|
|
|
188.7
|
|
|
|
187.3
|
|
|
|
185.2
|
|
|
Margin loans outstanding
|
|
11
|
%
|
|
4
|
%
|
|
|
(15.3
|
)
|
|
|
(14.7
|
)
|
|
|
(14.3
|
)
|
|
|
(14.4
|
)
|
|
|
(13.8
|
)
|
|
Total client assets
|
|
6
|
%
|
|
1
|
%
|
|
$
|
2,543.3
|
|
|
$
|
2,524.4
|
|
|
$
|
2,463.6
|
|
|
$
|
2,403.7
|
|
|
$
|
2,401.9
|
|
|
Client assets by business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Services
|
|
6
|
%
|
|
1
|
%
|
|
$
|
1,406.8
|
|
|
$
|
1,391.2
|
|
|
$
|
1,351.5
|
|
|
$
|
1,323.3
|
|
|
$
|
1,321.0
|
|
|
Advisor Services
|
|
5
|
%
|
|
-
|
|
|
|
1,136.5
|
|
|
|
1,133.2
|
|
|
|
1,112.1
|
|
|
|
1,080.4
|
|
|
|
1,080.9
|
|
|
Total client assets
|
|
6
|
%
|
|
1
|
%
|
|
$
|
2,543.3
|
|
|
$
|
2,524.4
|
|
|
$
|
2,463.6
|
|
|
$
|
2,403.7
|
|
|
$
|
2,401.9
|
|
|
Net growth in assets in client accounts (for the quarter
ended)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net new assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Services (3, 4)
|
|
176
|
%
|
|
16
|
%
|
|
$
|
26.8
|
|
|
$
|
23.2
|
|
|
$
|
13.8
|
|
|
$
|
18.7
|
|
|
$
|
9.7
|
|
|
Advisor Services (5)
|
|
(22
|
%)
|
|
85
|
%
|
|
|
10.2
|
|
|
|
5.5
|
|
|
|
19.4
|
|
|
|
16.0
|
|
|
|
13.0
|
|
|
Total net new assets
|
|
63
|
%
|
|
29
|
%
|
|
|
37.0
|
|
|
|
28.7
|
|
|
|
33.2
|
|
|
|
34.7
|
|
|
|
22.7
|
|
|
Net market (losses) gains
|
|
(125
|
%)
|
|
(156
|
%)
|
|
|
(18.1
|
)
|
|
|
32.1
|
|
|
|
26.7
|
|
|
|
(32.9
|
)
|
|
|
71.2
|
|
|
Net growth
|
|
(80
|
%)
|
|
(69
|
%)
|
|
$
|
18.9
|
|
|
$
|
60.8
|
|
|
$
|
59.9
|
|
|
$
|
1.8
|
|
|
$
|
93.9
|
|
|
New brokerage accounts (in thousands, for the quarter ended)
|
|
16
|
%
|
|
2
|
%
|
|
|
280
|
|
|
|
274
|
|
|
|
243
|
|
|
|
229
|
|
|
|
242
|
|
|
Clients (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active Brokerage Accounts
|
|
4
|
%
|
|
1
|
%
|
|
|
9,605
|
|
|
|
9,493
|
|
|
|
9,386
|
|
|
|
9,309
|
|
|
|
9,252
|
|
|
Banking Accounts
|
|
6
|
%
|
|
2
|
%
|
|
|
1,004
|
|
|
|
986
|
|
|
|
985
|
|
|
|
970
|
|
|
|
950
|
|
|
Corporate Retirement Plan Participants (3)
|
|
10
|
%
|
|
-
|
|
|
|
1,474
|
|
|
|
1,474
|
|
|
|
1,428
|
|
|
|
1,405
|
|
|
|
1,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Excludes all proprietary mutual funds and ETFs.
|
|
(2)
|
|
Beginning in the second quarter of 2015, certain Mutual Fund
OneSource balances were reclassified to Other third-party mutual
funds. Prior period information has been recast to reflect this
change.
|
|
(3)
|
|
In the first quarter of 2015, the Company increased its reported
totals for overall client assets and retirement plan participants by
$6.1 billion and 35,000, respectively, to reflect the final impact
of the consolidation of its retirement plan recordkeeping platforms
as previously announced in September 2013.
|
|
(4)
|
|
Second quarter of 2015 includes inflows of $17.4 billion from
certain mutual fund clearing service clients. Third quarter of 2014
includes inflows of $10.2 billion and an outflow of $3.4 billion
from certain mutual fund clearing service clients.
|
|
(5)
|
|
First quarter of 2015 includes an outflow of $11.6 billion relating
to the Company's planned resignation from an Advisor Services cash
management relationship.
|
|
|
|
|
|
The Charles Schwab Corporation Monthly Activity Report For June
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
|
Jun
|
|
Jul
|
|
Aug
|
|
Sep
|
|
Oct
|
|
Nov
|
|
Dec
|
|
Jan
|
|
Feb
|
|
Mar
|
|
Apr
|
|
May
|
|
June
|
|
Mo.
|
|
Yr.
|
|
Market Indices
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(at month end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dow Jones Industrial Average
|
|
16,827
|
|
|
16,563
|
|
|
17,098
|
|
|
17,043
|
|
|
17,391
|
|
|
17,828
|
|
|
17,823
|
|
|
17,165
|
|
|
18,133
|
|
|
17,776
|
|
|
17,841
|
|
|
18,011
|
|
|
17,620
|
|
|
(2
|
%)
|
|
5
|
%
|
|
Nasdaq Composite
|
|
4,408
|
|
|
4,370
|
|
|
4,580
|
|
|
4,493
|
|
|
4,631
|
|
|
4,792
|
|
|
4,736
|
|
|
4,635
|
|
|
4,964
|
|
|
4,901
|
|
|
4,941
|
|
|
5,070
|
|
|
4,987
|
|
|
(2
|
%)
|
|
13
|
%
|
|
Standard & Poor’s 500
|
|
1,960
|
|
|
1,931
|
|
|
2,003
|
|
|
1,972
|
|
|
2,018
|
|
|
2,068
|
|
|
2,059
|
|
|
1,995
|
|
|
2,105
|
|
|
2,068
|
|
|
2,086
|
|
|
2,107
|
|
|
2,063
|
|
|
(2
|
%)
|
|
5
|
%
|
|
Client Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in billions of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Client Assets
|
|
2,354.2
|
|
|
2,401.9
|
|
|
2,382.7
|
|
|
2,448.3
|
|
|
2,403.7
|
|
|
2,440.6
|
|
|
2,478.8
|
|
|
2,463.6
|
|
|
2,445.0
|
|
|
2,531.1
|
|
|
2,524.4
|
|
|
2,549.3
|
|
|
2,568.8
|
|
|
|
|
|
|
Net New Assets (1, 2)
|
|
11.5
|
|
|
15.9
|
|
|
8.5
|
|
|
10.3
|
|
|
7.9
|
|
|
10.9
|
|
|
14.4
|
|
|
9.3
|
|
|
6.8
|
|
|
12.6
|
|
|
9.1
|
|
|
10.1
|
|
|
17.8
|
|
|
76
|
%
|
|
55
|
%
|
|
Net Market Gains (Losses)
|
|
36.2
|
|
|
(35.1
|
)
|
|
57.1
|
|
|
(54.9
|
)
|
|
29.0
|
|
|
27.3
|
|
|
(29.6
|
)
|
|
(27.9
|
)
|
|
79.3
|
|
|
(19.3
|
)
|
|
15.8
|
|
|
9.4
|
|
|
(43.3
|
)
|
|
|
|
|
|
Total Client Assets (at month end)
|
|
2,401.9
|
|
|
2,382.7
|
|
|
2,448.3
|
|
|
2,403.7
|
|
|
2,440.6
|
|
|
2,478.8
|
|
|
2,463.6
|
|
|
2,445.0
|
|
|
2,531.1
|
|
|
2,524.4
|
|
|
2,549.3
|
|
|
2,568.8
|
|
|
2,543.3
|
|
|
(1
|
%)
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receiving Ongoing Advisory Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(at month end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Services
|
|
176.5
|
|
|
175.1
|
|
|
180.0
|
|
|
177.3
|
|
|
180.2
|
|
|
183.3
|
|
|
182.5
|
|
|
181.5
|
|
|
187.8
|
|
|
188.4
|
|
|
191.0
|
|
|
192.8
|
|
|
191.4
|
|
|
(1
|
%)
|
|
8
|
%
|
|
Advisor Services (3)
|
|
1,014.9
|
|
|
1,007.2
|
|
|
1,035.3
|
|
|
1,015.3
|
|
|
1,032.4
|
|
|
1,049.0
|
|
|
1,045.6
|
|
|
1,038.4
|
|
|
1,065.8
|
|
|
1,063.4
|
|
|
1,071.9
|
|
|
1,079.3
|
|
|
1,066.7
|
|
|
(1
|
%)
|
|
5
|
%
|
|
Client Accounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(at month end, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active Brokerage Accounts
|
|
9,252
|
|
|
9,269
|
|
|
9,288
|
|
|
9,309
|
|
|
9,326
|
|
|
9,346
|
|
|
9,386
|
|
|
9,407
|
|
|
9,435
|
|
|
9,493
|
|
|
9,553
|
|
|
9,572
|
|
|
9,605
|
|
|
-
|
|
|
4
|
%
|
|
Banking Accounts
|
|
950
|
|
|
956
|
|
|
964
|
|
|
970
|
|
|
974
|
|
|
979
|
|
|
985
|
|
|
978
|
|
|
983
|
|
|
986
|
|
|
992
|
|
|
1,000
|
|
|
1,004
|
|
|
-
|
|
|
6
|
%
|
|
Corporate Retirement Plan Participants (2)
|
|
1,344
|
|
|
1,381
|
|
|
1,383
|
|
|
1,405
|
|
|
1,416
|
|
|
1,416
|
|
|
1,428
|
|
|
1,441
|
|
|
1,475
|
|
|
1,474
|
|
|
1,469
|
|
|
1,469
|
|
|
1,474
|
|
|
-
|
|
|
10
|
%
|
|
Client Activity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Brokerage Accounts (in thousands)
|
|
76
|
|
|
78
|
|
|
75
|
|
|
76
|
|
|
76
|
|
|
70
|
|
|
97
|
|
|
84
|
|
|
80
|
|
|
110
|
|
|
111
|
|
|
80
|
|
|
89
|
|
|
11
|
%
|
|
17
|
%
|
|
Inbound Calls (in thousands)
|
|
1,806
|
|
|
1,873
|
|
|
1,768
|
|
|
1,755
|
|
|
1,928
|
|
|
1,656
|
|
|
1,980
|
|
|
1,872
|
|
|
1,827
|
|
|
1,930
|
|
|
1,954
|
|
|
1,621
|
|
|
1,763
|
|
|
9
|
%
|
|
(2
|
%)
|
|
Web Logins (in thousands)
|
|
32,768
|
|
|
33,426
|
|
|
32,491
|
|
|
31,098
|
|
|
32,409
|
|
|
31,528
|
|
|
34,580
|
|
|
34,294
|
|
|
35,379
|
|
|
36,278
|
|
|
35,966
|
|
|
32,112
|
|
|
31,644
|
|
|
(1
|
%)
|
|
(3
|
%)
|
|
Client Cash as a Percentage of Client Assets (4)
|
|
11.9
|
%
|
|
12.1
|
%
|
|
11.9
|
%
|
|
12.2
|
%
|
|
12.1
|
%
|
|
11.9
|
%
|
|
12.3
|
%
|
|
12.3
|
%
|
|
11.9
|
%
|
|
12.0
|
%
|
|
11.5
|
%
|
|
11.6
|
%
|
|
11.7
|
%
|
|
10 bp
|
|
(20) bp
|
|
Mutual Fund and Exchange-Traded Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Buys (Sells) (5, 6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Large Capitalization Stock
|
|
311
|
|
|
773
|
|
|
620
|
|
|
228
|
|
|
1,881
|
|
|
1,538
|
|
|
1,347
|
|
|
1,084
|
|
|
(1,154
|
)
|
|
(586
|
)
|
|
(1,496
|
)
|
|
(1,410
|
)
|
|
(804
|
)
|
|
|
|
|
|
Small / Mid Capitalization Stock
|
|
220
|
|
|
(355
|
)
|
|
(639
|
)
|
|
(127
|
)
|
|
(307
|
)
|
|
91
|
|
|
(346
|
)
|
|
488
|
|
|
(12
|
)
|
|
290
|
|
|
423
|
|
|
(108
|
)
|
|
78
|
|
|
|
|
|
|
International
|
|
2,137
|
|
|
817
|
|
|
524
|
|
|
166
|
|
|
(20
|
)
|
|
794
|
|
|
177
|
|
|
1,630
|
|
|
3,463
|
|
|
4,650
|
|
|
3,613
|
|
|
2,718
|
|
|
2,255
|
|
|
|
|
|
|
Specialized
|
|
1,690
|
|
|
1,082
|
|
|
373
|
|
|
(24
|
)
|
|
781
|
|
|
503
|
|
|
566
|
|
|
1,452
|
|
|
748
|
|
|
(47
|
)
|
|
(5
|
)
|
|
25
|
|
|
8
|
|
|
|
|
|
|
Hybrid
|
|
201
|
|
|
532
|
|
|
165
|
|
|
-
|
|
|
(531
|
)
|
|
(363
|
)
|
|
(687
|
)
|
|
180
|
|
|
138
|
|
|
(284
|
)
|
|
(210
|
)
|
|
(238
|
)
|
|
(133
|
)
|
|
|
|
|
|
Taxable Bond
|
|
606
|
|
|
92
|
|
|
683
|
|
|
(3,475
|
)
|
|
797
|
|
|
577
|
|
|
(1,914
|
)
|
|
1,298
|
|
|
2,722
|
|
|
924
|
|
|
1,075
|
|
|
1,757
|
|
|
421
|
|
|
|
|
|
|
Tax-Free Bond
|
|
516
|
|
|
277
|
|
|
400
|
|
|
463
|
|
|
584
|
|
|
479
|
|
|
603
|
|
|
598
|
|
|
471
|
|
|
613
|
|
|
13
|
|
|
(101
|
)
|
|
(132
|
)
|
|
|
|
|
|
Net Buy (Sell) Activity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mutual Funds (5)
|
|
3,313
|
|
|
1,804
|
|
|
612
|
|
|
(4,022
|
)
|
|
358
|
|
|
254
|
|
|
(4,381
|
)
|
|
3,174
|
|
|
3,086
|
|
|
1,765
|
|
|
420
|
|
|
813
|
|
|
(725
|
)
|
|
|
|
|
|
Exchange-Traded Funds (6)
|
|
2,368
|
|
|
1,414
|
|
|
1,514
|
|
|
1,253
|
|
|
2,827
|
|
|
3,365
|
|
|
4,127
|
|
|
3,556
|
|
|
3,290
|
|
|
3,795
|
|
|
2,993
|
|
|
1,830
|
|
|
2,418
|
|
|
|
|
|
|
Money Market Funds
|
|
(1,664
|
)
|
|
1,493
|
|
|
1,248
|
|
|
2,224
|
|
|
477
|
|
|
(1,643
|
)
|
|
4,294
|
|
|
(2,080
|
)
|
|
(2,158
|
)
|
|
(1,362
|
)
|
|
(6,970
|
)
|
|
421
|
|
|
(358
|
)
|
|
|
|
|
|
Average Interest-Earning Assets (7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of dollars)
|
|
137,328
|
|
|
137,785
|
|
|
139,027
|
|
|
140,115
|
|
|
141,502
|
|
|
141,884
|
|
|
144,695
|
|
|
147,495
|
|
|
148,911
|
|
|
152,247
|
|
|
152,697
|
|
|
153,466
|
|
|
155,369
|
|
|
1
|
%
|
|
13
|
%
|
|
(1)
|
|
June 2015 includes an inflow of $8.1 billion from a mutual fund
clearing services client. April 2015 includes inflows of $9.3
billion from certain mutual fund clearing service clients.
February 2015 includes an outflow of $11.6 billion relating to the
Company's planned resignation from an Advisor Services cash
management relationship. September 2014 includes an inflow of $7.8
billion and outflow of $3.4 billion from certain mutual fund
clearing service clients. July 2014 includes an inflow of $2.4
billion from a mutual fund clearing services client.
|
|
(2)
|
|
In February 2015, the Company increased its reported totals for
overall client assets and retirement plan participants by $6.1
billion and 35,000, respectively, to reflect the final impact of
the consolidation of its retirement plan recordkeeping platforms
as previously announced in September 2013.
|
|
(3)
|
|
Excludes Retirement Business Services Trust.
|
|
(4)
|
|
Schwab One®, certain cash equivalents, bank deposits and
money market fund balances as a percentage of total client assets.
|
|
(5)
|
|
Represents the principal value of client mutual fund transactions
handled by Schwab, including transactions in proprietary funds.
Includes institutional funds available only to Investment Managers.
Excludes money market fund transactions.
|
|
(6)
|
|
Represents the principal value of client ETF transactions handled by
Schwab, including transactions in proprietary ETFs.
|
|
(7)
|
|
Represents total interest-earning assets on the Company's balance
sheet.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150716005321/en/
Copyright Business Wire 2015