TD Ameritrade Gathers a Record $16 Billion in Net New Client Assets

  TD Ameritrade Gathers a Record $16 Billion in Net New Client Assets

            Record 13% Annualized Net New Client Asset Growth Rate

                     Diluted Earnings per Share of $0.27

    Record Market Fee-based Revenue of $55 Million, up 28% Year-Over-Year

Business Wire

OMAHA, Neb. -- January 22, 2013

TD Ameritrade Holding Corporation (NYSE: AMTD) has released results for the
first quarter of fiscal 2013. The Company gathered record net new client
assets of $16 billion – a 13 percent annualized growth rate – up more than 50
percent from the same quarter a year ago.

The Company’s results for the quarter ended Dec. 31, 2012 include the
following:^(1)

  *Net income of $147 million, or $0.27 per diluted share
  *Record net new client assets of approximately $16 billion, a record
    annualized growth rate of 13 percent
  *Average client trades per day of approximately 334,000, an activity rate
    of 5.8 percent^(2)
  *Net revenues of $651 million, 58 percent of which were asset-based
  *Record market fee-based revenue of $55 million, up 28 percent
    year-over-year
  *Pre-tax income of $237 million, or 36 percent of net revenues
  *EBITDA of $286 million, or 44 percent of net revenues^(3)
  *Record interest rate sensitive assets^(4) of $90 billion, up 14 percent
    year-over-year
  *Client assets of approximately $481 billion

“Record net new client assets of $16 billion and earnings per share of 27
cents is a significant achievement in this environment, and a strong start to
our fiscal year,” said Fred Tomczyk, president and chief executive officer.
“In the face of continued investor uncertainty, we maintained our strong
organic growth momentum and had record sales of guidance and advice solutions,
all while keeping our expenses in check.”

“TD Ameritrade continues to benefit from strong organic growth and disciplined
management of our balance sheet,” said Bill Gerber, executive vice president
and chief financial officer. “Our record organic growth this quarter helped
grow interest rate sensitive assets to a record $90 billion, up 14 percent
from last year, leaving us even better-positioned for rising interest rates.
In addition, market fee-based revenue is up 28 percent year-over-year, driven
by our effective referral and sales processes. We remain focused on
maintaining our momentum as we move forward.”

Capital Deployment
The Company has declared a $0.09 per share quarterly cash dividend, payable on
Feb. 15, 2013 to all holders of record of common stock as of Feb. 1, 2013.

“In addition to the quarterly dividend, TD Ameritrade paid down a maturing
tranche of debt and issued a special dividend of 50 cents per share in the
first quarter,” Tomczyk continued. “Strong cash flow, combined with a clean
and stable balance sheet gives us the flexibility to return or deploy capital
to the benefit of our shareholders while maintaining our ability to be
opportunistic.”

Company Hosts Conference Call
TD Ameritrade will host its December Quarter conference call this morning,
Jan. 22, 2013, at 8:30 a.m. EST (7:30 a.m. CST). Participants may listen to
the call by dialing 877-881-2595. The Company will also webcast the conference
live at www.amtd.com and will make all accompanying materials available to
participants prior to the call. A phone replay of the call will be available
by dialing 855-859-2056 and entering the Conference ID 75110688 beginning at
11:30 a.m. EST (10:30 a.m. CST) on January 22, 2013.

The Company asks that interested parties visit or subscribe to newsfeeds at
www.amtd.com for the most up-to-date corporate financial information,
presentation announcements, transcripts and archives. You can also follow the
Company on Twitter, @TDAmeritradePR. Web site links, corporate titles and
telephone numbers provided in this release, although correct when published,
may change in the future.

AMTD-E

About TD Ameritrade Holding Corporation
Millions of investors and independent registered investment advisors (RIAs)
have turned to TD Ameritrade’s (NYSE: AMTD) technology, people and education
to help make investing and trading easier to understand and do. Online or over
the phone. In a branch or with an independent RIA. First-timer or
sophisticated trader. Our clients want to take control, and we help them
decide how - bringing Wall Street to Main Street for more than 38 years. TD
Ameritrade has time and again been recognized as a leader in investment
services. Please visit the TD Ameritrade newsroom or www.amtd.com for more
information.

Safe Harbor
This document contains forward-looking statements within the meaning of the
federal securities laws. We intend these forward-looking statements to be
covered by the safe harbor provisions of the federal securities laws. In
particular, any projections regarding our future revenues, expenses, earnings,
capital expenditures, effective tax rates, client trading activity, accounts
or stock price, as well as the assumptions on which such expectations are
based, are forward-looking statements. These statements reflect only our
current expectations and are not guarantees of future performance or results.
These statements involve risks, uncertainties and assumptions that could cause
actual results or performance to differ materially from those contained in the
forward-looking statements. These risks, uncertainties and assumptions
include, but are not limited to: general economic and political conditions and
other securities industry risks, fluctuations in interest rates, stock market
fluctuations and changes in client trading activity, credit risk with clients
and counterparties, increased competition, systems failures, delays and
capacity constraints, network security risks, liquidity risks, new laws and
regulations affecting our business, regulatory and legal matters and
uncertainties and other risk factors described in our latest Annual Report on
Form 10-K, filed with the SEC on Nov. 26, 2012. These forward-looking
statements speak only as of the date on which the statements were made. We
undertake no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or
otherwise, except to the extent required by the federal securities laws.

^1 Please see the Glossary of Terms, located in “Investor” section of
www.amtd.com for more information on how these metrics are calculated.

^2 Funded account activity rate (AR%). Average client trades per day during
the period divided by the average number of total funded accounts during the
period.

^3See attached reconciliation of non-GAAP financial measures.

^4Interest rate-sensitive assets consist of spread-based assets and money
market mutual funds. Ending balances as of December 31, 2012.

Brokerage services provided by TDAmeritrade, Inc., member FINRA
(www.FINRA.org) /SIPC (www.SIPC.org) /NFA (www.nfa.futures.org).


TD AMERITRADE HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
In millions, except per share amounts
(Unaudited)
                                                            
                              Quarter Ended
                              Dec. 31, 2012     Sept. 30, 2012     Dec. 31,
                                                                   2011
Revenues:
Transaction-based
revenues:
Commissions and               $   257           $   256            $  273
transaction fees
                                                                   
Asset-based revenues:
Interest revenue                  118               117               111
Brokerage interest               (2     )         (1     )         (2    )
expense
Net interest revenue              116               116               109
                                                                   
Insured deposit account           205               207               205
fees
Investment product fees          56              52              44    
Total asset-based                 377               375               358
revenues
                                                                   
Other revenues                   17              16              22    
                                                                   
Net revenues                     651             647             653   
                                                                   
Operating expenses:
Employee compensation and         168               167               173
benefits
Clearing and execution            24                23                20
costs
Communications                    28                28                28
Occupancy and equipment           39                38                38
costs
Depreciation and                  20                19                17
amortization
Amortization of acquired          23                23                23
intangible assets
Professional services             34                39                45
Advertising                       52                58                57
Other                            22              20              24    
Total operating expenses         410             415             425   
                                                                   
Operating income                  241               232               228
                                                                   
Other expense (income):
Interest on borrowings            6                 7                 7
Gain on sale of                  (2     )         -               -     
investments
Total other expense              4               7               7     
(income)
                                                                   
Pre-tax income                    237               225               221
                                                                   
Provision for income             90              82              69    
taxes
                                                                   
Net income                    $   147          $   143           $  152   
                                                                   
Earnings per share -          $   0.27          $   0.26           $  0.28
basic
Earnings per share -          $   0.27          $   0.26           $  0.27
diluted
                                                                   
Weighted average shares           546               546               550
outstanding - basic
Weighted average shares           551               551               555
outstanding - diluted
                                                                   
Dividends declared per        $   0.59          $   0.06           $  0.06
share
                                                                   


TD AMERITRADE HOLDING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
In millions
(Unaudited)
                                                           
                                              Dec. 31, 2012     Sept. 30, 2012
Assets:
Cash and cash equivalents                     $    1,852        $    915
Short-term investments                             4                 154
Segregated cash and investments                    4,682             4,030
Broker/dealer receivables                          948               1,110
Client receivables, net                            8,799             8,647
Goodwill and intangible assets                     3,376             3,399
Other                                             1,357            1,258
                                                                
Total assets                                  $    21,018       $    19,513
                                                                
Liabilities and stockholders' equity:
                                                                
Liabilities:
Broker/dealer payables                        $    1,941        $    1,992
Client payables                                    12,459            10,728
Notes payable                                      275               -
Long-term debt                                     1,087             1,345
Other                                             978              1,023
                                                   16,740            15,088
                                                                
Stockholders' equity                              4,278            4,425
                                                                
Total liabilities and stockholders'           $    21,018       $    19,513
equity
                                                                


TD AMERITRADE HOLDING CORPORATION
SELECTED OPERATING DATA
(Unaudited)

                          Quarter Ended
                            Dec. 31, 2012   Sept. 30, 2012   Dec. 31, 2011
Key Metrics:
Net new assets (in          $ 15.6            $  10.1            $ 10.2
billions)
Net new asset growth          13        %        9         %       11        %
rate (annualized)
Average client trades         334,035            328,280           367,479
per day
                                                                 
Profitability Metrics:
Operating margin              37.0      %        35.9      %       34.9      %
Pre-tax margin                36.4      %        34.8      %       33.8      %
Return on client assets       0.20      %        0.20      %       0.22      %
(annualized)
Return on average
stockholders' equity          13.3      %        13.1      %       14.8      %
(annualized)
EBITDA^(1) as a
percentage of net             43.9      %        42.3      %       41.0      %
revenues
                                                                 
Debt and Liquidity
Metrics:
Interest on borrowings      $ 6               $  7               $ 7
(in millions)
Average debt
outstanding (in             $ 1.2             $  1.3             $ 1.3
billions)
Leverage ratio (average
debt/annualized               1.0                1.1               1.2
EBITDA^(1))
Interest coverage ratio
(EBITDA^(1)/interest on       45.4               39.8              38.0
borrowings)
Liquid assets -
management target^(1)       $ 0.8             $  1.1             $ 0.9
(in billions)
Liquid assets -
regulatory                  $ 1.3             $  1.6             $ 1.4
threshold^(1) (in
billions)
Cash and cash
equivalents (in             $ 1.9             $  0.9             $ 0.9
billions)
                                                                 
Transaction-Based
Revenue Metrics:
Total trades (in              20.4               20.5              23.0
millions)
Average commissions and
transaction fees per        $ 12.62           $  12.47           $ 11.90
trade^(2)
Average client trades
per funded account            14.3               14.3              16.3
(annualized)
Activity rate - funded        5.8       %        5.7       %       6.5       %
accounts
Trading days                  61.0               62.5              62.5
                                                                 
Spread-Based Asset
Metrics:
Average
interest-earning assets     $ 15.1            $  14.8            $ 13.8
(in billions)
Average insured deposit
account balances (in         64.2             61.4            58.8      
billions)
Average spread-based        $ 79.3           $  76.2           $ 72.6      
balance (in billions)
                                                                 
Net interest revenue        $ 116             $  116             $ 109
(in millions)
Insured deposit account
fee revenue (in              205              207             205       
millions)
Spread-based revenue        $ 321            $  323            $ 314       
(in millions)
                                                                 
Avg. annualized yield -       3.02      %        3.06      %       3.09      %
interest-earning assets
Avg. annualized yield -
insured deposit account       1.25      %        1.32      %       1.37      %
fees
Net interest margin           1.58      %        1.66      %       1.69      %
(NIM)
                                                                 
Interest days                 92                 92                92
                                                                 
Fee-Based Investment
Metrics:
Money market mutual
fund fees:
Average balance (in         $ 5.1             $  4.9             $ 5.7
billions)
Average annualized           0.05      %       0.05      %      0.08      %
yield
Fee revenue (in             $ 1              $  1              $ 1         
millions)
                                                                 
Market fee-based
investment balances:
Average balance (in         $ 94.9            $  88.7            $ 72.2
billions)
Average annualized           0.23      %       0.23      %      0.23      %
yield
Fee revenue (in             $ 55             $  51             $ 43        
millions)
                                                                 
Average fee-based
investment balances (in     $ 100.0           $  93.6            $ 77.9
billions)
Average annualized           0.22      %       0.22      %      0.22      %
yield
Investment product fee      $ 56             $  52             $ 44        
revenue (in millions)
                                                                 
Client Account and
Client Asset Metrics:
New accounts opened           174,000            190,000           140,000
                                                                 
Funded accounts               5,764,000          5,736,000         5,617,000
(beginning of period)
Funded accounts (end of       5,836,000          5,764,000         5,645,000
period)
Percentage change             1         %        0         %       0         %
during period
                                                                 
Client assets
(beginning of period,       $ 472.3           $  445.0           $ 378.7
in billions)
Client assets (end of       $ 480.8           $  472.3           $ 406.3
period, in billions)
Percentage change             2         %        6         %       7         %
during period
                                                                 
^(1) See attached reconciliation of non-GAAP financial measures.

^(2) Average commissions and transaction fees per trade excludes TD Waterhouse
UK business.

NOTE: See Glossary of Terms on the Company's web site at www.amtd.com for
definitions of the above metrics.



TD AMERITRADE HOLDING CORPORATION
SELECTED OPERATING DATA
(Unaudited)

                            Quarter Ended
                              Dec. 31, 2012   Sept. 30, 2012   Dec. 31,
                                                                   2011
Net Interest Revenue:                                           
Segregated cash:
Average balance (in           $   3.8           $   3.7            $  4.1
billions)
Average annualized yield         0.17   %         0.14   %         0.04  %
Interest revenue (in          $   2            $   1             $  0     
millions)
                                                                   
Client margin balances:
Average balance (in           $   8.7           $   8.4            $  7.7
billions)
Average annualized yield         4.02   %         4.04   %         4.31  %
Interest revenue (in          $   89           $   87            $  85    
millions)
                                                                   
Securities
borrowing/lending:
Average securities
borrowing balance (in         $   0.9           $   1.0            $  0.6
billions)
Average securities
lending balance (in           $   1.9           $   2.0            $  1.7
billions)
                                                                   
Interest revenue (in          $   27            $   29             $  25
millions)
Interest expense (in             (2     )         (1     )         (1    )
millions)
Net interest revenue -
securities                    $   25           $   28            $  24    
borrowing/lending (in
millions)
                                                                   
Other cash and
interest-earning
investments:
Average balance (in           $   1.7           $   1.7            $  1.4
billions)
Average annualized yield         0.07   %         0.07   %         0.12  %
Interest revenue - net        $   0            $   0             $  0     
(in millions)
                                                                   
Client credit balances:
Average balance (in           $   9.2           $   8.7            $  8.8
billions)
Average annualized cost          0.01   %         0.01   %         0.02  %
Interest expense (in             ($0    )         ($0    )         ($0   )
millions)
                                                                   
Average interest-earning      $   15.1          $   14.8           $  13.8
assets (in billions)
Average annualized yield         3.02   %         3.06   %         3.09  %
Net interest revenue (in      $   116          $   116           $  109   
millions)
                                                                   
                                                                   
NOTE: See Glossary of Terms on the Company's web site at www.amtd.com for
definitions of the above metrics.



TD AMERITRADE HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
In millions, except percentages
(Unaudited)
                                                                                      
                                                                                                    
                          Quarter Ended
                          Dec. 31, 2012                 Sept. 30, 2012               Dec. 31, 2011
                          $             % of Net        $             % of Net      $              % of Net
                                        Rev.                          Rev.                          Rev.
EBITDA (1)
EBITDA                    $ 286           43.9   %      $ 274           42.3  %      $ 268          41.0  %
Less:
        Depreciation
        and                 (20   )       (3.1   %)       (19   )       (2.9  %)       (17    )     (2.6  %)
        amortization
        Amortization
        of acquired         (23   )       (3.5   %)       (23   )       (3.6  %)       (23    )     (3.5  %)
        intangible
        assets
        Interest on         (6    )       (0.9   %)       (7    )       (1.1  %)       (7     )     (1.1  %)
        borrowings
        Provision for      (90   )       (13.8  %)      (82   )       (12.7 %)      (69    )     (10.6 %)
        income taxes
Net income                $ 147          22.6   %      $ 143          22.1  %      $ 152         23.3  %
                                                                                                    
                                                                                                    
                          As of
                          Dec. 31,      Sept. 30,       June 30,      Mar. 31,       Dec. 31,
                          2012          2012            2012          2012           2011
Liquid Assets -
Management Target (2)
Liquid assets -           $ 774         $ 1,054         $ 993         $ 917          $ 918
management target
        Broker-dealer
Plus:   cash and cash       841           406             387           507            444
        equivalents
        Trust company
        cash and cash       556           95              74            75             62
        equivalents
        Investment
        advisory cash       15            11              25            18             11
        and cash
        equivalents
                                                                                                    
        Corporate
Less:   short-term          -             (150   )        (126  )       (50   )        -
        investments
        Excess
        broker-dealer      (334  )      (501   )       (443  )      (441  )       (517   )
        regulatory
        net capital
Cash and cash             $ 1,852      $ 915          $ 910        $ 1,026       $ 918    
equivalents
                                                                                                    
                          As of
                          Dec. 31,      Sept. 30,       June 30,      Mar. 31,       Dec. 31,
                          2012          2012            2012          2012           2011
Liquid Assets -
Regulatory Threshold
(2)
Liquid assets -           $ 1,337       $ 1,611         $ 1,554       $ 1,485        $ 1,422
regulatory threshold
        Broker-dealer
Plus:   cash and cash       841           406             387           507            444
        equivalents
        Trust company
        cash and cash       556           95              74            75             62
        equivalents
        Investment
        advisory cash       15            11              25            18             11
        and cash
        equivalents
                                                                                                    
        Corporate
Less:   short-term          -             (150   )        (126  )       (50   )        -
        investments
        Excess trust
        company Tier        (10   )       (10    )        (10   )       (10   )        (9     )
        1 capital
        Excess
        broker-dealer      (887  )      (1,048 )       (994  )      (999  )       (1,012 )
        regulatory
        net capital
Cash and cash             $ 1,852      $ 915          $ 910        $ 1,026       $ 918    
equivalents
                                                                                                    
Note: The term "GAAP" in the following explanation refers to generally accepted accounting principles in the
United States.
                                                                                                    

      EBITDA (earnings before interest, taxes, depreciation and amortization)
      is considered a non-GAAP financial measure as defined by SEC Regulation
      G. We consider EBITDA an important measure of our financial performance
      and of our ability to generate cash flows to service debt, fund capital
      expenditures and fund other corporate investing and financing
(1)  activities. EBITDA is used as the denominator in the consolidated
      leverage ratio calculation for covenant purposes under our holding
      company's senior revolving credit facility. EBITDA eliminates the
      non-cash effect of tangible asset depreciation and amortization and
      intangible asset amortization. EBITDA should be considered in addition
      to, rather than as a substitute for, pre-tax income, net income and cash
      flows from operating activities.
      

      Our liquid assets metrics are considered non-GAAP financial measures as
      defined by SEC Regulation G.We include the excess capital of our
      broker-dealer and trust company subsidiaries in the calculation of our
      liquid assets metrics, rather than simply including broker-dealer and
      trust company cash and cash equivalents, because capital requirements
      may limit the amount of cash available for dividend from the
(2)  broker-dealer and trust company subsidiaries to the parent
      company.Excess capital, as defined below, is generally available for
      dividend from the broker-dealer and trust company subsidiaries to the
      parent company.We consider our liquid assets metrics to be important
      measures of our liquidity and of our ability to fund corporate investing
      and financing activities.The liquid assets metrics should be
      considered as supplemental measures of liquidity, rather than as
      substitutes for cash and cash equivalents.
      
      We define "liquid assets - management target" as the sum of (a)
      corporate cash and cash equivalents, (b) corporate short-term
      investments and (c) regulatory net capital of (i) our clearing
      broker-dealer subsidiary in excess of 10% of aggregate debit items and
      (ii) our introducing broker-dealer subsidiaries in excess of a minimum
      operational target established by management ($50 million in the case of
      our primary introducing broker-dealer, TD Ameritrade, Inc.).“Liquid
      assets – management target” is based on more conservative measures of
      broker-dealer net capital than “liquid assets – regulatory threshold”
      (defined below) because we prefer to maintain significantly more
      conservative levels of net capital at the broker-dealer subsidiaries
      than the regulatory thresholds require.We consider "liquid assets -
      management target" to be a measure that reflects our liquidity that
      would be readily available for corporate investing or financing
      activities under normal operating circumstances.
      
      We define "liquid assets - regulatory threshold" as the sum of (a)
      corporate cash and cash equivalents, (b) corporate short-term
      investments, (c) regulatory net capital of (i) our clearing
      broker-dealer subsidiary in excess of 5% of aggregate debit items and
      (ii) our introducing broker-dealer subsidiaries in excess of the
      applicable "early warning" net capital requirement and (d) Tier 1
      capital of our trust company in excess of the minimum dollar
      requirement. We consider "liquid assets - regulatory threshold" to be a
      measure that reflects our liquidity that would be available for
      corporate investing or financing activities under unusual operating
      circumstances, such as the need to provide funding for significant
      strategic business transactions.
      

Contact:

TD Ameritrade Holding Corporation
Kim Hillyer, 402-574-6523
Director, Communications
kim.hillyer@tdameritrade.com
or
Jeff Goeser, 402-597-8464
Director, Investor Relations and Finance
jeffrey.goeser@tdameritrade.com