Schwab Reports Monthly Activity Highlights

  Schwab Reports Monthly Activity Highlights

Client Assets Reach a Record $2.04 Trillion

Business Wire

SAN FRANCISCO -- March 14, 2013

The Charles Schwab Corporation released its Monthly Market Activity Report
today. Company highlights for the month of February 2013 include:

  *Net new assets brought to the company by new and existing clients in
    February 2013 totaled $18.3 billion, including an $8.1 billion inflow
    related to a mutual fund clearing services client.
  *Total client assets were a record $2.04trillion as of month-end February,
    up 13% from February 2012 and up 1% compared to January 2013.
  *Client daily average trades were 506.1 thousand in February 2013, up 1%
    compared to February 2012 and flat compared to January 2013. February 2013
    trading activity included a 2% sequential decline in daily average revenue

The company expects first quarter compensation expense to be elevated by
approximately $10 million pre-tax due to the planned transition to a new
payout schedule for field incentive plans. Trailing payouts under the old
schedule will diminish as the year progresses. In addition, the company funded
its entire annual contribution to employee health savings accounts (HSAs),
which totaled approximately $10 million, in the first quarter. Schwab is in
the process of converting to HSA-focused healthcare, and employee enrollment
in these plans has risen significantly in 2013. The company’s average
quarterly HSA contribution in 2012 was approximately $200,000, reflecting
lower participation. The company also expects to record a one-time
compensation expense of approximately $10 million during the first quarter
related to previously-announced equity incentive plan changes to vesting for
retirement-eligible employees.

CFO Joe Martinetto commented, “Our client-focused strategy continues to yield
strong business momentum. Net new assets were $30 billion year-to-date, an
annualized organic growth rate of 9%. Client trading activity, however,
remains muted. Since trade volumes have yet to rebound as expected, we are
adjusting our 2013 spending plans accordingly. With our expense growth
beginning to moderate from planned levels at this point in the year, we expect
reported first quarter earnings per share to at least match the prior quarter
and full-year EPS to remain consistent with the baseline scenario we described
during our Winter Business Update on February 7.”

The SMART report can be viewed with its accompanying 12-month data at

Forward Looking Statements

This press release contains forward looking statements relating to the
company’s compensation expense, trading, spending plans, expense growth and
earnings per share. 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, general market conditions, including the
level of interest rates, equity valuations and trading activity; the company’s
ability to manage expenses; acquisition integration costs; net interest
margin; 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 Form 10-K for the period ending December 31, 2012.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial
services, with more than 300offices and 8.8million client brokerage
accounts, 1.6million corporate retirement plan participants, 881,000banking
accounts, and $2.04 trillion in client assets as of February 28, 2013. 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,, 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 and


Charles Schwab
Greg Gable, 415-667-0473
Charles Schwab
Richard Fowler, 415-667-1841
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