Schwab Reports Fourth Quarter Net Income Up 29% Year-Over-Year

  Schwab Reports Fourth Quarter Net Income Up 29% Year-Over-Year

Sustained Client Focus and Financial Discipline Yielded Profitable Growth in
2012

December Core Net New Assets Total a Record $22.6Billion

Business Wire

SAN FRANCISCO -- January 16, 2013

The Charles Schwab Corporation announced today that its net income for the
fourth quarter of 2012 was $211million, down 15% from $247million for the
third quarter of 2012, and up 29% from $163million for the fourth quarter of
2011. Net income for the twelve months ended December31, 2012 was
$928million, up 7% year-over-year. Schwab’s 2012 results include an after-tax
gain of approximately $44million relating to the resolution of a vendor
dispute and a non-recurring state tax benefit of approximately $20million,
which were recorded in the second and third quarters, respectively.

                                                 Twelve
               Three Months Ended             Months                
                                                 Ended
               --December 31,--        %        --December               %
                                                 31,--
Financial      2012       2011       Change  2012        2011       Change
Highlights
                          
Net revenues    $ 1,215     $ 1,113     9   %    $  4,883     $ 4,691     4   %
(in millions)
Net income      $ 211       $ 163       29  %    $  928       $ 864       7   %
(in millions)
Diluted
earnings per    $ .15       $ .13       15  %    $  .69       $ .70       (1  %)
common share
Pre-tax           28.3  %     22.6  %               29.7  %     29.7  %
profit margin
Return on
average
common            9     %     8     %               11    %     12    %
stockholders’
equity
(annualized)



CEO and President Walt Bettinger commented, “Our ‘through clients’ eyes’
strategy helped build investor trust in Schwab and supported another year of
outstanding growth for our company in 2012. Our individual client loyalty
scores reached new highs during the year, and our client metrics ended
strongly, with December core net new assets totaling a record $22.6billion,
28% higher than the previous record set in March2008. Core net new assets
totaled $112.4billion for 2012, up 37% over the prior year. We ended the year
with a record $1.95trillion in total client assets, up 16% over
December2011. We added 900,000new brokerage accounts to our client base
during 2012, and active brokerage accounts reached a record 8.8million at
year-end, up 3% year-over-year. In addition, we served 865,000banking
accounts and 1.6million corporate retirement plan participants as of
month-end December2012, up 11% and 5%, respectively.”

“By continuing to challenge the status quo in investing services we believe
that both our clients and the company win,” Mr. Bettinger said. “Our progress
in completing and delivering a number of significant innovations in our client
service capabilities remained on track throughout 2012. For example, our new
index-based 401(k) offering has 41 companies committed to participate and more
than 200 actively considering enrollment; our new independent branches were
open in 12 locations by year-end; and our expanded mobile and tablet solutions
are already being utilized by over half a million clients.”

Mr. Bettinger added, “Just as clients trust us to find a better way to serve
them, our stockholders trust us to use resources effectively as we work to
grow the company and its earnings. With environmental pressures continuing to
slow our revenue progress in 2012, our enduring commitment to expense
discipline enabled Schwab to allocate over $160million to projects across our
businesses and still deliver a 30% pre-tax profit margin for the year.”

CFO Joe Martinetto noted, “In addition to successfully growing our client base
in 2012, we made further progress in building non rate-sensitive sources of
revenue, including an 11% increase in fees from rising balances in our
proprietary advice solutions. As a result, despite further declines in
interest rates and relatively muted investor trading activity, our full-year
performance included increases in both net interest revenue and asset
management and administration fees, and 4% overall revenue growth. Our fourth
quarter results illustrate the company’s improved momentum heading into 2013,
with year-over-year revenue growth of 9% and a 29% increase in net income.
Looking ahead, we believe that Schwab’s financial story will remain driven by
the three key themes of strong business growth, diversified revenue streams,
and expense discipline.”

Mr. Martinetto concluded, “Our work to further strengthen the company’s
balance sheet while maximizing its contribution to earnings power continued
throughout 2012. During the fourth quarter, we acted to reduce the cost of
outstanding long-term debt by redeeming the remaining $494million of our
4.95% Senior Notes due in 2014, with the cost of the redemption offset by
gains from the sale of selected investment portfolio securities. Our actions
also included the issuance of $350million of new Senior Notes with a coupon
of 0.85% and a 2015 due date.”

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

Investor Services

  *Net new accounts for the quarter totaled approximately 4,000, down 69%
    year-over-year. Total accounts reached 6.1million as of December31,
    2012, up 7% year-over-year.
  *Launched an enhanced On Investing^® application for the iPad^®, providing
    access to articles from Schwab’s On Investing^®  magazine, Schwab’s latest
    research, expert perspectives and investment guidance all in one place.

Institutional Services

Advisor Services

  *Launched the Schwab Advisor Center^® application for the iPad^®, enabling
    advisors to view key client data such as balances, positions, and
    transactions while away from the office.

Other Institutional Services

  *Launched Compliance Solutions, an offering for corporate clients which
    combines the capabilities of both Designated Brokerage Services and
    recently acquired Compliance11 to create a comprehensive compliance and
    employee trade monitoring solution.

Products and Infrastructure

  *For Charles Schwab Bank:

       *Balance sheet assets = $85.8billion, up 30% year-over-year.
       *Outstanding mortgage and home equity loans = $9.8billion, up 8%
         year-over-year.
       *First mortgage originations through its loan program during the
         quarter = $2.2billion, a new record.
       *Delinquency, nonaccrual, and loss reserve ratios for Schwab Bank’s
         loan portfolio = 0.77%, 0.45% and 0.52%, respectively, at month-end
         December.
       *Schwab Bank High Yield Investor Checking^® accounts = 671,000, with
         $11.6billion in balances.

  *Client assets managed by Windhaven^® totaled $13.6billion, up 9% from the
    third quarter of 2012.
  *Total assets under management in Schwab ETFs^™ = $8.6billion. Total
    assets in Schwab Managed Portfolios-ETFs = $2.4billion.
  *Completed the acquisition of ThomasPartners, Inc., a growth and dividend
    income-focused asset management firm with $2.4billion in assets under
    management as of December31, 2012.
  *Launched the ETF Education Exchange^™
    (www.schwabetfeducationexchange.com), a new website designed to close the
    knowledge gap in ETFs by aggregating educational content, research and
    market insights from ETF industry leaders.
  *Expanded client access to fixed income securities by adding new municipal
    bond issues from Piper Jaffray to Schwab’s BondSource^® platform.
  *Launched a new Order and Execution Management System, which leverages
    optionsXpress’ order routing capabilities to help create better execution
    opportunities for clients.

iPad is atrademark of Apple Inc., registered in the U.S. and other countries.

Supporting schedules are either attached or located at:
www.aboutschwab.com/investor_relations/financial_reports

Forward Looking Statements

This press release contains forward looking statements relating to enrollment
and participation in the company’s new index-based 401(k) offering, growth of
the company’s business, revenues, earnings and expense discipline. Achievement
of these expectations is subject to risks and uncertainties that could cause
actual results to differ materially from the expressed expectations. Important
factors that may cause such differences include, but are not limited to, the
enrollment rate in the company’s index-based 401(k) offering, general market
conditions, including the level of interest rates, equity valuations and
trading activity; net interest margin; level of expenses; 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; the company’s
ability to develop and launch new products, services and capabilities in a
timely and successful manner; capital needs and management; the impact of
changes in market conditions on money market fund fee waivers, revenues,
expenses and pre-tax margins; 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 Form10-Q for the
period endedSeptember 30,2012.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial
services, with more than 300offices and 8.8million active brokerage
accounts, 1.6million corporate retirement plan participants, 865,000banking
accounts, and $1.95trillion in client assets. Through its operating
subsidiaries, the company provides a full range of securities brokerage,
banking, money management and financial advisory services to individual
investors and independent investment advisors. Its broker-dealer subsidiary,
Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a
complete range of investment services and products including an extensive
selection of mutual funds; financial planning and investment advice;
retirement plan and equity compensation plan services; compliance and trade
monitoring solutions; referrals to independent fee-based investment advisors;
and custodial, operational and trading support for independent, fee-based
investment advisors through Schwab Advisor Services. Its banking subsidiary,
Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides
banking and lending services and products. More information is available at
www.schwab.com and www.aboutschwab.com.


THE CHARLES SCHWAB CORPORATION
Consolidated Statements of Income
(In millions, except per share amounts)
(Unaudited)
                                                             
                                Three Months Ended     Twelve Months Ended
                                 December 31,            December 31,
                               2012       2011       2012       2011
                                                                  
Net Revenues
Asset management and             $ 539       $ 458       $ 2,043     $ 1,928
administration fees
                                                                     
Interest revenue                   467         436         1,914       1,900
Interest expense                  (34   )    (41   )    (150  )    (175  )
Net interest revenue               433         395         1,764       1,725
                                                                     
Trading revenue                    202         233         868         927
Other                              47          41          256         160
Provision for loan losses          (2    )     (5    )     (16   )     (18   )
Net impairment losses on           (4    )     (9    )     (32   )     (31   )
securities ^(1)
                                                             
Total net revenues               1,215    1,113    4,883    4,691 
                                                                     
Expenses Excluding Interest
Compensation and benefits          450         442         1,803       1,732
Professional services              101         99          388         387
Occupancy and equipment            78          79          311         301
Advertising and market             68          69          241         228
development
Communications                     54          54          220         220
Depreciation and amortization      50          48          196         155
Class action litigation and        -           -           -           7
regulatory reserve
Other                            70       70       274      269   
Total expenses excluding         871      861      3,433    3,299 
interest
                                                                     
Income before taxes on income      344         252         1,450       1,392
Taxes on income                  133      89       522      528   
                                                                     
Net Income                       211      163      928      864   
                                                                     
Preferred stock dividends        22       -        45       -     
                                                                     
Net Income Available to Common  $ 189     $ 163     $ 883     $ 864   
Stockholders
                                                                     
Weighted-Average Common Shares   1,278    1,271    1,275    1,229 
Outstanding — Diluted
                                                                     
Earnings Per Common Share —      $ .15       $ .13       $ .69       $ .70
Basic
                                                                     
Earnings Per Common Share —     $ .15     $ .13     $ .69     $ .70   
Diluted

       Net impairment losses on securities include total other-than-temporary
       impairment losses of $0 million and $5 million, net of $(4) million and
       $(4) million recognized in other comprehensive income, for the three
^(1)  months ended December 31, 2012 and 2011, respectively. Net impairment
       losses on securities include total other-than-temporary impairment
       losses of $15 million and $18 million, net of $(17) million and $(13)
       million recognized in other comprehensive income, for the twelve months
       ended December 31, 2012 and 2011, respectively.
       
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)
                                                                           
                  Q4-12 % change    2012                                            2011
                   vs.     vs.      Fourth      Third       Second      First       Fourth
(In millions,
except per share   Q4-11    Q3-12    Quarter    Quarter    Quarter    Quarter    Quarter
amounts and as
noted)
Net Revenues
Asset management
and                18  %    3   %    $ 539       $ 524       $ 496       $ 484       $ 458
administration
fees
Net interest       10  %    (1  %)     433         439         458         434         395
revenue
Trading revenue    (13 %)   (1  %)     202         204         219         243         233
Other ^(1)         15  %    12  %      47          42          121         46          41
Provision for      (60 %)   (80 %)     (2    )     (10   )     (4    )     -           (5    )
loan losses
Net impairment
losses on          (56 %)   33  %     (4    )   (3    )   (7    )   (18   )   (9    )
securities
Total net          9   %    2   %     1,215    1,196    1,283    1,189    1,113 
revenues
Expenses
Excluding
Interest
Compensation and   2   %    2   %      450         442         446         465         442
benefits
Professional       2   %    3   %      101         98          93          96          99
services
Occupancy and      (1  %)   1   %      78          77          80          76          79
equipment
Advertising and
market             (1  %)   39  %      68          49          57          67          69
development
Communications     -        2   %      54          53          55          58          54
Depreciation and   4   %    -          50          50          48          48          48
amortization
Other              -        6   %     70       66       72       66       70    
Total expenses
excluding          1   %    4   %     871      835      851      876      861   
interest
Income before      37  %    (5  %)     344         361         432         313         252
taxes on income
Taxes on income    49  %    17  %     133      114      157      118      89    
^(2)
Net Income         29  %    (15 %)   $ 211     $ 247     $ 275     $ 195     $ 163   
Preferred stock    N/M      144 %     22       9        14       -        -     
dividends
Net Income
Available to       16  %    (21 %)   $ 189     $ 238     $ 261     $ 195     $ 163   
Common
Stockholders
Basic earnings     15  %    (21 %)   $ .15       $ .19       $ .20       $ .15       $ .13
per common share
Diluted earnings   15  %    (21 %)   $ .15       $ .19       $ .20       $ .15       $ .13
per common share
Dividends
declared per       -        -        $ .06       $ .06       $ .06       $ .06       $ .06
common share
Weighted-average
common shares      1   %    -         1,278    1,275    1,274    1,273    1,271 
outstanding -
diluted
Performance
Measures
Pre-tax profit                         28.3  %     30.2  %     33.7  %     26.3  %     22.6  %
margin
Return on
average common
stockholders’                         9     %   11    %   13    %   10    %   8     %
equity
(annualized)
^(3)
Financial
Condition (at
quarter end, in
billions)
Cash and
investments        10  %    14  %    $ 28.5      $ 25.0      $ 22.7      $ 26.9      $ 26.0
segregated
Receivables from
brokerage          22  %    13  %    $ 13.5      $ 11.9      $ 12.0      $ 11.2      $ 11.1
clients
Loans to banking   9   %    6   %    $ 10.7      $ 10.1      $ 9.8       $ 9.8       $ 9.8
clients
Total assets       23  %    14  %    $ 133.6     $ 117.7     $ 111.8     $ 111.5     $ 108.6
Deposits from      30  %    15  %    $ 79.4      $ 68.8      $ 66.3      $ 62.3      $ 60.9
banking clients
Payables to
brokerage          14  %    16  %    $ 40.3      $ 34.8      $ 31.8      $ 36.4      $ 35.5
clients
Long-term debt     (20 %)   (11 %)   $ 1.6       $ 1.8       $ 2.0       $ 2.0       $ 2.0
Stockholders'      25  %    1   %    $ 9.6     $ 9.5     $ 9.1     $ 8.3     $ 7.7   
equity ^(4)
Other
Full-time
equivalent
employees (at      (2  %)   1   %      13.8        13.6        13.7        14.0        14.1
quarter end, in
thousands)
Annualized net
revenues per
average
full-time          12  %    1   %    $ 355       $ 352       $ 372       $ 340       $ 316
equivalent
employee (in
thousands)
Capital
expenditures -
cash purchases
of equipment,      (27 %)   21  %    $ 40      $ 33      $ 31      $ 34      $ 55    
office
facilities, and
property, net
(in millions)
Clients’ Daily
Average Trades
(in thousands)
^(5)
Revenue trades     (14 %)   2   %      265.7       261.5       285.2       318.4       307.4
^(6)
Asset-based        30  %    32  %      59.6        45.2        50.6        53.7        45.9
trades ^(7)
Other trades       17  %    30  %     124.7    95.7     99.8     104.1    106.3 
^(8)
Total              (2  %)   12  %     450.0    402.4    435.6    476.2    459.6 
Average Revenue
Per Revenue        2   %    -        $ 12.49   $ 12.44   $ 12.15   $ 12.35   $ 12.21 
Trade ^(5,6)
                   

(1)  Includes a pre-tax gain of $70 million relating to a confidential
      resolution of a vendor dispute in the second quarter of 2012.
(2)   Includes a non-recurring state tax benefit of $20 million in the third
      quarter of 2012.
      Return on average common stockholders' equity is calculated using net
(3)   income available to common stockholders divided by average common
      stockholders' equity.
      In the second quarter and first quarter of 2012, the Company issued
(4)   non-cumulative perpetual preferred stock, Series B, for a total
      liquidation preference of $485 million
      and non-cumulative perpetual preferred stock, Series A, with a total
      liquidation preference of $400 million, respectively.
(5)   The fourth quarter of 2012 does not include two trading days due to
      weather-related market closures on October 29 and 30, 2012.
(6)   Includes all client trades that generate either commission revenue or
      revenue from principal markups (i.e., fixed income); also known as DART.
(7)   Includes eligible trades executed by clients who participate in one or
      more of the Company's asset-based pricing relationships.
(8)   Includes all commission free trades, including Schwab Mutual Fund
      OneSource^® funds and ETFs, and other proprietary products.
N/M   Not meaningful.
      
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                                                Twelve Months Ended
                       December 31,                                                      December 31,
                       2012                            2011                             2012                            2011
                                  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          $ 8,287     $   6      0.29  %   $ 5,736     $   4      0.28  %   $ 7,130     $  18      0.25  %   $ 5,554    $  13      0.23  %
equivalents
Cash and investments     25,284        13     0.20  %     27,912        9      0.13  %     25,263       46      0.18  %     25,831      39      0.15  %
segregated
Broker-related           366           -      0.11  %     203           -      0.04  %     351          -       0.04  %     310         -       0.05  %
receivables ^(1)
Receivables from         11,460        113    3.92  %     10,225        111    4.31  %     10,928       446     4.08  %     10,637      467     4.39  %
brokerage clients
Securities available     43,624        140    1.28  %     30,789        124    1.60  %     39,745       583     1.47  %     27,486      456     1.66  %
for sale ^(2)
Securities held to       15,954        95     2.37  %     15,268        79     2.05  %     15,371       397     2.58  %     16,050      492     3.07  %
maturity
Loans to banking         10,447        76     2.89  %     9,857         79     3.18  %     10,053       309     3.07  %     9,472       310     3.27  %
clients
Loans held for sale    -           -     -         74          1     3.99  %    18         1      4.12  %    65        3      4.62  %
Total
interest-earning       115,422     443   1.53  %    100,064     407   1.61  %    108,859    1,800  1.65  %    95,405    1,780  1.87  %
assets
Other interest                     24                          29                         114                        120    
revenue
Total
interest-earning      $ 115,422  $   467   1.61  %   $ 100,064  $   436   1.73  %   $ 108,859  $  1,914  1.76  %   $ 95,405  $  1,900  1.99  %
assets
Funding sources:
Deposits from          $ 71,411    $   11     0.06  %   $ 55,822    $   13     0.09  %   $ 65,546    $  42      0.06  %   $ 52,701   $  62      0.12  %
banking clients
Payables to              30,368        1      0.01  %     32,079        1      0.01  %     29,831       3       0.01  %     29,992      3       0.01  %
brokerage clients
Long-term debt         1,815       22    4.82  %    2,002       27    5.35  %    1,934      103    5.33  %    2,004     108    5.39  %
Total
interest-bearing       103,594     34    0.13  %    89,903      41    0.18  %    97,311     148    0.15  %    84,697    173    0.20  %
liabilities
Non-interest-bearing     11,828                           10,161                           11,548                           10,708
funding sources
Other interest                     -                           -                          2                          2      
expense
Total funding         $ 115,422  $   34    0.12  %   $ 100,064  $   41    0.16  %   $ 108,859  $  150    0.14  %   $ 95,405  $  175    0.18  %
sources
Net interest revenue            $   433   1.49  %             $   395   1.57  %             $  1,764  1.62  %            $  1,725  1.81  %

(1)  Interest revenue was less than $500,000 in the period or periods
      presented.
(2)   Amounts have been calculated based on amortized cost.
      

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. Certain prior
period amounts have been reclassified to conform to the 2012 presentation. 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, 2011.



THE CHARLES SCHWAB CORPORATION
Asset Management and Administration Fees Information
(In millions)
(Unaudited)
                                                                                                                     
                Three Months Ended                                                Twelve Months Ended
                 December 31,                                                      December 31,
                 2012                            2011                             2012                             2011
                 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     $ 159,421   $ 228      0.57  %   $ 157,863   $ 226      0.57  %   $ 155,866   $ 891       0.57  %   $ 153,478   $ 865       0.56  %
before fee
waivers
Fee waivers                (142 )                      (168 )                      (587  )                      (568  )  
Schwab money       159,421     86       0.21  %     157,863     58       0.15  %     155,866     304       0.20  %     153,478     297       0.19  %
market funds
Equity and
bond funds         50,559      30       0.24  %     40,711      29       0.28  %     47,778      125       0.26  %     41,347      118       0.29  %
^(1)
Mutual Fund      221,338   179    0.32  %    200,779   160    0.32  %    216,564   680     0.31  %    210,907   680     0.32  %
OneSource ^®
Total mutual    $ 431,318   295    0.27  %   $ 399,353   247    0.25  %   $ 420,208   1,109   0.26  %   $ 405,732   1,095   0.27  %
funds ^(2)
Advice
solutions ^      $ 125,589     153      0.48  %   $ 108,048     130      0.48  %   $ 119,850     580       0.48  %   $ 109,703     522       0.48  %
(2)
Other ^(3)                 91                         81                         354                         311     
Total asset
management and            $ 539                       $ 458                       $ 2,043                      $ 1,928   
administration
fees

(1)  Includes Schwab ETFs.
      Advice solutions include separately managed accounts, customized
      personal advice for tailored portfolios, and specialized planning and
      full-time portfolio management offered through the Company's Schwab
(2)   Private Client, Schwab Managed Portfolio and Managed Account Select
      programs. Advice solutions also includes Schwab Advisor Network, Schwab
      Advisor Source, and Windhaven. Average client assets for advice
      solutions may also include the asset balances contained in the three
      categories of mutual funds listed above.
(3)   Includes various asset based fees, such as trust fees, 401k record
      keeping fees, and mutual fund clearing and other service fees.
      

THE CHARLES SCHWAB CORPORATION
Growth in Client Assets and Accounts
(Unaudited)
                                                                                  
               Q4-12 % Change    2012                                                    2011
                vs.     vs.       Fourth        Third         Second        First         Fourth
(In billions,
at quarter      Q4-11   Q3-12     Quarter      Quarter      Quarter      Quarter       Quarter
end, except
as noted)
Assets in
client
accounts
Schwab One^®,
other cash
equivalents     23   %  15   %    $ 119.0       $ 103.7       $ 98.2        $ 98.8        $ 96.4
and deposits
from banking
clients
Proprietary
funds (Schwab
Funds^® and
Laudus
Funds^®):
Money market    5    %  8    %      167.9         155.7         152.9         154.4         159.8
funds
Equity and      30   %  2    %     49.6       48.4       45.3       45.8       38.2    
bond funds
Total
proprietary     10   %  7    %     217.5      204.1      198.2      200.2      198.0   
funds
Mutual Fund
Marketplace^®
^(1)
Mutual Fund     12   %  -           223.2         222.1         211.2         219.5         198.6
OneSource^®
Mutual fund
clearing        53   %  18   %      159.1         134.4         126.4         127.0         104.2
services
Other
third-party     18   %  3    %     360.1      350.0      328.7      334.1      305.9   
mutual funds
Total Mutual
Fund            22   %  5    %     742.4      706.5      666.3      680.6      608.7   
Marketplace
Total mutual    19   %  5    %     959.9      910.6      864.5      880.8      806.7   
fund assets
Equity and
other           16   %  -           702.4         705.5         670.4         685.0         607.9
securities
^(1)
Fixed income    3    %  -           181.8         181.8         180.5         179.4         176.9
securities
Margin loans    13   %  3    %     (11.5   )   (11.2   )   (11.2   )   (10.5   )   (10.2   )
outstanding
Total client    16   %  3    %    $ 1,951.6   $ 1,890.4   $ 1,802.4   $ 1,833.5   $ 1,677.7 
assets
                                                                                          
Client assets
by business
Investor        11   %  1    %    $ 775.4       $ 770.4       $ 737.0       $ 753.3       $ 697.9
Services
Advisor         16   %  3    %      788.5         762.3         727.6         735.9         679.0
Services
Other
Institutional   29   %  8    %     387.7      357.7      337.8      344.3      300.8   
Services
Total client
assets by       16   %  3    %    $ 1,951.6   $ 1,890.4   $ 1,802.4   $ 1,833.5   $ 1,677.7 
business
                                                                                          
Net growth in
assets in
client
accounts (for
the quarter
ended)
Net new
assets
Investor
Services ^      98   %  144  %    $ 10.5        $ 4.3         $ 2.9         $ 5.9         $ 5.3
(2)
Advisor         165  %  157  %      24.4          9.5           9.9           12.6          9.2
Services ^(3)
Other
Institutional   N/M     N/M        29.5       6.6        3.2        20.4       7.0     
Services ^(4)
Total net new   N/M     N/M        64.4       20.4       16.0       38.9       21.5    
assets
Net market
(losses)        (104 %) (105 %)    (3.2    )   67.6       (47.1   )   116.9      79.8    
gains
Net growth      (40  %) (30  %)   $ 61.2      $ 88.0      $ (31.1   )  $ 155.8     $ 101.3   
(decline)
                                                                                          
New brokerage
accounts (in
thousands,      19   %  22   %      241           198           221           240           203
for the
quarter
ended)
Clients (in
thousands)
Active
Brokerage       3    %  1    %      8,787         8,736         8,720         8,639         8,552
Accounts ^(5)
Banking         11   %  2    %      865           844           822           801           780
Accounts
Corporate
Retirement      5    %  2    %     1,571      1,547      1,524      1,516      1,492   
Plan
Participants
                

(1)  Excludes all proprietary money market, equity, and bond funds.
(2)   Includes outflows of approximately $100 million as a result of the sale
      of Open E Cry, LLC, in the third quarter of 2012.
(3)   Includes inflows of approximately $900 million as a result of the
      acquisition of ThomasPartners, Inc., in the fourth quarter of 2012.
      Includes inflows of $21.1 billion from mutual fund clearing services
      clients and outflows of $900 million related to a planned transfer from
(4)   Corporate Brokerage Services in the fourth quarter of 2012. Includes
      outflows of $1.2 billion as a result of the closure of brokersXpress LLC
      in the third quarter of 2012. Includes inflows of $12.0 billion from a
      mutual fund clearing services client in the first quarter of 2012.
      Removed approximately 30,000 due to escheatment and other factors in the
(5)   fourth quarter of 2012. Reduced by 19,000 as a result of the sale of
      Open E Cry, LLC, and the closure of brokersXpress LLC in the third
      quarter of 2012.
N/M   Not meaningful

Contact:

Charles Schwab
Greg Gable, 415-667-0473 (Media)
Rich Fowler, 415-667-1841 (Investors/Analysts)
 
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