Schwab Reports First Quarter Results

  Schwab Reports First Quarter Results

Net New Assets Total $43.4 billion, Highest First Quarter Core Flows Since
2000

Revenues Rise 8% From a Year Ago

Business Wire

SAN FRANCISCO -- April 15, 2013

The Charles Schwab Corporation announced today that its net income was
$206million for the first quarter of 2013, down 2% from $211million for the
fourth quarter of 2012, and up 6% from $195million for the year-earlier
quarter. These results are consistent with the outlook expressed in the
company’s press release dated March14, 2013.

                                               Three Months Ended    
                                                --March 31,--           %
Financial Highlights                            2013     2012    Change

Net revenues (in millions)                      $ 1,290    $ 1,189     8   %
Net income (in millions)                        $ 206       $ 195       6   %
Diluted earnings per common share               $ .15       $ .15       –
Pre-tax profit margin                             25.7  %     26.3  %
Return on average common stockholders’ equity     9     %     10    %
(annualized)
                                                              

CEO and President Walt Bettinger commented, “The investments we’ve made in our
clients over the past several years are powering strong business momentum.
During the first quarter we continued to win in the marketplace as we gathered
$43.4billion in net new assets, a 9% annualized organic growth rate, and
244,000 new brokerage accounts, up 2% year-over-year. We also had $4.7billion
in net new enrollments in our retail advisory offers, up more than 70%
year-over-year, as clients look to Schwab for help navigating opportunities in
the market. Client assets enrolled in advisory offers totaled $135.9billion
at month-end March, including $15.6billion managed in our Windhaven^®
portfolios, up 15% and 51%, respectively, from a year ago. We ended the
quarter with a record $2.08trillion in total client assets, up 14%, and our
client base grew to 8.9million active brokerage accounts, 888,000banking
accounts and 1.6million corporate retirement plan participants, up 3%, 11%
and 4%, respectively.”

“Already in 2013 we’ve made significant progress on our key initiatives, which
reflect our focus on delivering improved service, value and convenience for
clients,” Mr. Bettinger continued. “During the first quarter, we launched
Schwab ETF OneSource™, providing clients with commission-free access to 105
ETFs from Schwab and 5 other leading providers. Our 15 proprietary ETFs, which
are part of Schwab ETF OneSource, reached $10.9billion at quarter-end, up 65%
year-over-year. First mortgage loans originated through our improved lending
program totaled $2.0billion during the quarter, more than double the volume
in last year’s first quarter. We also added to our mobile and tablet
capabilities by launching the Schwab Advisor Center™ app for Android devices.
Schwab’s mobile and tablet solutions are already in use by hundreds of
advisors and over 560,000 individual clients.”

____________________________
Core net new assets is defined as net new assets before significant one-time
flows, such as acquisitions/divestitures or extraordinary mutual fund clearing
transfers. There were no such adjustments in the first quarter of 2013.

Mr. Bettinger added, “We believe Schwab’s commitment to innovating the
investing experience on behalf of clients is important to building long-term
stockholder value. Our business momentum enabled the company to produce
sequential improvement in all three of its main revenue sources in the first
quarter, and to achieve 8% overall revenue growth versus a year ago, even as
current environmental factors such as low rates and relatively muted trading
activity continued to weigh on our results. While our emphasis on client
investments in recent years has limited our near-term earnings expansion, we
are aiming for increased operating leverage during the balance of 2013 and
into 2014, as those investments yield solid client metrics and we begin to
moderate the pace of expense growth.”

CFO Joe Martinetto noted, “Our earnings picture for 2013 hasn’t changed – the
temporary and seasonal factors elevating our first quarter compensation and
benefits expense will fade and we are taking action to address the evolving
revenue outlook for the year. Right now, that outlook includes balance and
spread-related revenues that are mostly in line with our expectations and
trading activity that remains more muted than planned.”

Mr. Martinetto continued, “As previously disclosed, our first quarter expenses
included a total of approximately $30million pre-tax relating to overlapping
field incentive payout schedules; increased and accelerated health savings
account contributions; and revised equity incentive award vesting for
retirement-eligible employees. With these impacts largely behind us, as well
as certain payroll taxes reaching their caps and a heightened focus on
staffing levels, we expect comp and benefits will decline by approximately
$50million sequentially in the second quarter, and show only limited growth
in the second half of the year. In addition to careful headcount management,
we are also adjusting our planned spending for projects and marketing so that
targeted expense growth slows but continues to allow for both increased
investment in our clients and improvement in profit-margin and earnings for
2013.”

Mr. Martinetto concluded, “Overall, we believe our diversified revenue streams
and ongoing expense discipline will help us achieve at least a 30% pre-tax
profit margin and earnings per share in the mid-$0.70’s for full-year 2013,
consistent with the baseline scenario we described during our Winter Business
Update on February 7. With solid profitability and a healthy balance sheet
that includes nearly $10 billion of stockholders’ equity, we remain well
positioned to support our growing businesses.”

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

Investor Services

  *Net new retail accounts for the quarter totaled approximately 36,000, up
    from 14,000 a year ago. Total retail accounts reached 6.1million as of
    March31, 2013, up 2% year-over-year.
  *Lowered and simplified the commission structure to $3.50 per contract for
    futures and futures options traded through optionsXpress.

Advisor Services

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

Products and Infrastructure

  *For Charles Schwab Bank:

       *Balance sheet assets = $89.0billion, up 31% year-over-year.
       *Outstanding mortgage and home equity loans = $10.3billion, up 14%
         year-over-year.
       *First mortgage originations through its loan program during the
         quarter = $2.0billion.
       *Delinquency, nonaccrual, and loss reserve ratios for Schwab Bank’s
         loan portfolio = 0.55%, 0.37% and 0.52%, respectively, at month-end
         March.

  *Schwab Bank High Yield Investor Checking^® accounts = 692,000, with
    $11.8billion in balances.
  *Client assets managed by Windhaven^® totaled $15.6billion, up 15% from
    year-end 2012.
  *Total assets under management in Schwab ETFs™ = $10.9billion. Total
    assets in Schwab Managed Portfolios-ETFs = $2.6billion.
  *Launched Schwab ETF OneSource™, a platform that enables clients to trade
    105 ETFs from 6 fund families, including Schwab, with $0 online trade
    commissions.
  *Launched the Schwab Retirement Income Variable Annuity™, providing
    investors an easy-to-understand, low-cost retirement funding option that
    can generate guaranteed income for life.
  *Expanded the lineup of target date funds for retail and retirement plan
    clients to include Schwab Target Funds for the years 2045, 2050, and 2055,
    as well as two additional collective trust funds.

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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 the
company’s operating leverage, client metrics, expense growth, earnings,
compensation and benefits expense, revenue, trading activity, headcount
management, spending for projects and marketing, investment in clients and
profit margin. 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 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 company’s
ability to manage expenses; the actual level of field sales activity and
related incentive compensation; regulatory guidance; acquisition integration
costs; net interest margin; 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 ended December 31, 2012.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial
services, with more than 300offices and 8.9million active brokerage
accounts, 1.6million corporate retirement plan participants, 888,000banking
accounts, and $2.08trillion in client assets as of March 31, 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, www.sipc.org), and
affiliates offer a complete range of investment services and products
including an extensive selection of mutual funds; financial planning and
investment advice; retirement plan and equity compensation plan services;
referrals to independent fee-based investment advisors; and custodial,
operational and trading support for independent, fee-based investment advisors
through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank
(member FDIC and an Equal Housing Lender), provides banking and lending
services and products. More information is available at www.schwab.com and
www.aboutschwab.com.


THE CHARLES SCHWAB CORPORATION
Consolidated Statements of Income
(In millions, except per share amounts)
(Unaudited)
                                                                
                                                       Three Months Ended
                                                         March 31,
                                                      2013       2012
                                                                   
Net Revenues
Asset management and administration fees                 $ 552       $ 484
                                                                     
Interest revenue                                           497         472
Interest expense                                          (28   )    (38   )
Net interest revenue                                       469         434
                                                                     
Trading revenue                                            223         243
Other                                                      56          46
Provision for loan losses                                  (6    )     -
Net impairment losses on securities ^(1)                   (4    )     (18   )
                                                                
Total net revenues                                      1,290    1,189 
                                                                     
Expenses Excluding Interest
Compensation and benefits                                  536         465
Professional services                                      99          96
Occupancy and equipment                                    77          76
Advertising and market development                         74          67
Communications                                             54          58
Depreciation and amortization                              51          48
Other                                                   68       66    
Total expenses excluding interest                       959      876   
                                                                     
Income before taxes on income                              331         313
Taxes on income                                         125      118   
                                                                     
Net Income                                              206      195   
                                                                     
Preferred stock dividends                               8        -     
                                                                     
Net Income Available to Common Stockholders            $ 198     $ 195   
                                                                     
Weighted-Average Common Shares Outstanding — Diluted    1,282    1,273 
                                                                     
Earnings Per Common Share — Basic                        $ .15       $ .15
                                                                     
Earnings Per Common Share — Diluted                    $ .15     $ .15   

       Net impairment losses on securities include total other-than-temporary
^(1)  impairment losses of $0 million and $2 million, net of $(4) million and
       $(16) million reclassified from other comprehensive income, for the
       three months ended March 31, 2013 and 2012, 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)
                                                                           
                  Q1-13 % change    2013        2012
                   vs.     vs.      First       Fourth      Third       Second      First
(In millions,
except per share   Q1-12    Q4-12    Quarter    Quarter    Quarter    Quarter    Quarter
amounts and as
noted)
Net Revenues
Asset management
and                14  %    2   %    $ 552       $ 539       $ 524       $ 496       $ 484
administration
fees
Net interest       8   %    8   %      469         433         439         458         434
revenue
Trading revenue    (8  %)   10  %      223         202         204         219         243
Other ^(1)         22  %    19  %      56          47          42          121         46
Provision for      N/M      200 %      (6    )     (2    )     (10   )     (4    )     -
loan losses
Net impairment
losses on          (78 %)   -         (4    )   (4    )   (3    )   (7    )   (18   )
securities
Total net          8   %    6   %     1,290    1,215    1,196    1,283    1,189 
revenues
Expenses
Excluding
Interest
Compensation and   15  %    19  %      536         450         442         446         465
benefits
Professional       3   %    (2  %)     99          101         98          93          96
services
Occupancy and      1   %    (1  %)     77          78          77          80          76
equipment
Advertising and
market             10  %    9   %      74          68          49          57          67
development
Communications     (7  %)   -          54          54          53          55          58
Depreciation and   6   %    2   %      51          50          50          48          48
amortization
Other              3   %    (3  %)    68       70       66       72       66    
Total expenses
excluding          9   %    10  %     959      871      835      851      876   
interest
Income before      6   %    (4  %)     331         344         361         432         313
taxes on income
Taxes on income    6   %    (6  %)    125      133      114      157      118   
^(2)
Net Income         6   %    (2  %)   $ 206     $ 211     $ 247     $ 275     $ 195   
Preferred stock    N/M      (64 %)    8        22       9        14       -     
dividends
Net Income
Available to       2   %    5   %    $ 198     $ 189     $ 238     $ 261     $ 195   
Common
Stockholders
Basic earnings     -        -        $ .15       $ .15       $ .19       $ .20       $ .15
per common share
Diluted earnings   -        -        $ .15       $ .15       $ .19       $ .20       $ .15
per common share
Dividends
declared per       -        -        $ .06       $ .06       $ .06       $ .06       $ .06
common share
Weighted-average
common shares      1   %    -         1,282    1,278    1,275    1,274    1,273 
outstanding -
diluted
Performance
Measures
Pre-tax profit                         25.7  %     28.3  %     30.2  %     33.7  %     26.3  %
margin
Return on
average common
stockholders’                         9     %   9     %   11    %   13    %   10    %
equity
(annualized)
^(3)
Financial
Condition (at
quarter end, in
billions)
Cash and
investments        -        (6  %)   $ 26.9      $ 28.5      $ 25.0      $ 22.7      $ 26.9
segregated
Receivables from
brokerage          10  %    (9  %)   $ 12.3      $ 13.5      $ 11.9      $ 12.0      $ 11.2
clients
Loans to banking   15  %    6   %    $ 11.3      $ 10.7      $ 10.1      $ 9.8       $ 9.8
clients
Total assets       19  %    -        $ 133.2     $ 133.6     $ 117.7     $ 111.8     $ 111.5
Deposits from      32  %    4   %    $ 82.4      $ 79.4      $ 68.8      $ 66.3      $ 62.3
banking clients
Payables to
brokerage          1   %    (9  %)   $ 36.7      $ 40.3      $ 34.8      $ 31.8      $ 36.4
clients
Long-term debt     (20 %)   -        $ 1.6       $ 1.6       $ 1.8       $ 2.0       $ 2.0
Stockholders'      18  %    2   %    $ 9.8     $ 9.6     $ 9.5     $ 9.1     $ 8.3   
equity ^(4)
Other
Full-time
equivalent
employees (at      -        1   %      14.0        13.8        13.6        13.7        14.0
quarter end, in
thousands)
Annualized net
revenues per
average
full-time          9   %    4   %    $ 369       $ 355       $ 352       $ 372       $ 340
equivalent
employee (in
thousands)
Capital
expenditures -
cash purchases
of equipment,      32  %    13  %    $ 45      $ 40      $ 33      $ 31      $ 34    
office
facilities, and
property, net
(in millions)
Clients’ Daily
Average Trades
(in thousands)
Revenue trades     (6  %)   12  %      298.7       265.7       261.5       285.2       318.4
^(5)
Asset-based        20  %    8   %      64.5        59.6        45.2        50.6        53.7
trades ^(6)
Other trades       30  %    9   %     135.7    124.7    95.7     99.8     104.1 
^(7)
Total              5   %    11  %     498.9    450.0    402.4    435.6    476.2 
Average Revenue
Per Revenue        -        (1  %)   $ 12.34   $ 12.49   $ 12.44   $ 12.15   $ 12.35 
Trade ^(5)
                            

(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
      non-cumulative perpetual preferred stock, Series B, for a total
(4)   liquidation preference of $485 million and non-cumulative perpetual
      preferred stock, Series A, with a total liquidation preference of $400
      million, respectively.
(5)   Includes all client trades that generate either commission revenue or
      revenue from principal markups (i.e., fixed income); also known as DART.
(6)   Includes eligible trades executed by clients who participate in one or
      more of the Company's asset-based pricing relationships.
(7)   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     2013                             2012
March 31,
                                    Interest  Average                Interest  Average
                         Average     Revenue/   Yield/      Average     Revenue/   Yield/
                      Balance    Expense   Rate      Balance    Expense   Rate
                                                                                   
Interest-earning
assets:
Cash and cash            $ 7,907     $   5      0.26  %     $ 6,246     $   4      0.26  %
equivalents
Cash and investments       27,590        12     0.18  %       26,847        10     0.15  %
segregated
Broker-related             361           -      0.13  %       315           -      0.09  %
receivables ^(1)
Receivables from           11,342        106    3.79  %       10,200        106    4.18  %
brokerage clients
Securities available       46,908        138    1.19  %       36,197        145    1.61  %
for sale ^(2)
Securities held to         21,063        131    2.52  %       14,972        99     2.66  %
maturity
Loans to banking           11,091        80     2.93  %       9,864         79     3.22  %
clients
Loans held for sale     -           -     -         53          1     4.15  %
Total
interest-earning        126,262     472   1.52  %    104,694     444   1.71  %
assets
Other interest                      25                          28    
revenue
Total
interest-earning       $ 126,262  $   497   1.60  %   $ 104,694  $   472   1.81  %
assets
Funding sources:
Deposits from            $ 80,341    $   10     0.05  %     $ 61,105    $   10     0.07  %
banking clients
Payables to                32,096        1      0.01  %       30,560        1      0.01  %
brokerage clients
Long-term debt          1,632       17    4.22  %    2,001       27    5.43  %
Total
interest-bearing        114,069     28    0.10  %    93,666      38    0.16  %
liabilities
Non-interest-bearing    12,193                      11,028            
funding sources
Total funding          $ 126,262  $   28    0.09  %   $ 104,694  $   38    0.14  %
sources
Net interest revenue             $   469   1.51  %             $   434   1.67  %

(1)  Interest revenue was less than $500,000 in the 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. 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, 2012.

**********


THE CHARLES SCHWAB CORPORATION
Asset Management and Administration Fees Information
(In millions)
(Unaudited)
                                                   
Three Months
Ended March     2013                              2012
31,
                 Average                          Average             
                 Client                 Average       Client                 Average
               Assets     Revenue   Fee         Assets     Revenue   Fee
                                                                             
Schwab money
market funds     $ 162,639   $ 230      0.57  %       $ 156,614   $ 222      0.57  %
before fee
waivers
Fee waivers                (155 )                        (163 )  
Schwab money       162,639     75       0.19  %         156,614     59       0.15  %
market funds
Equity and
bond funds         55,540      35       0.26  %         45,630      32       0.28  %
^(1)
Mutual Fund      234,959   184    0.32  %      215,350   166    0.31  %
OneSource ^®
Total mutual    $ 453,138   294    0.26  %     $ 417,594   257    0.25  %
funds ^(2)
Advice
solutions ^      $ 135,473     163      0.49  %       $ 115,496     139      0.48  %
(2)
Other ^(3)                 95                           88     
Total asset
management and            $ 552                         $ 484    
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, Windhaven, and ThomasPartners. 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, 401(k) record
      keeping fees, and mutual fund clearing and other service fees.
      

THE CHARLES SCHWAB CORPORATION
Growth in Client Assets and Accounts
(Unaudited)
                                                                                  
               Q1-13 % Change    2013          2012
                vs.     vs.      First         Fourth        Third         Second        First
(In billions,
at quarter      Q1-12   Q4-12    Quarter      Quarter      Quarter      Quarter      Quarter
end, except
as noted)
Assets in
client
accounts
Schwab One^®,
other cash
equivalents     21  %    -        $ 119.2       $ 119.0       $ 103.7       $ 98.2        $ 98.8
and deposits
from banking
clients
Proprietary
funds (Schwab
Funds^® and
Laudus
Funds^®):
Money market    3   %    (5  %)     159.3         167.9         155.7         152.9         154.4
funds
Equity and      23  %    14  %     56.3       49.6       48.4       45.3       45.8    
bond funds
Total
proprietary     8   %    (1  %)    215.6      217.5      204.1      198.2      200.2   
funds
Mutual Fund
Marketplace^®
^(1)
Mutual Fund     9   %    7   %      238.8         223.2         222.1         211.2         219.5
OneSource^®
Mutual fund
clearing        43  %    14  %      181.5         159.1         134.4         126.4         127.0
services
Other
third-party     16  %    8   %     388.4      360.1      350.0      328.7      334.1   
mutual funds
Total Mutual
Fund            19  %    9   %     808.7      742.4      706.5      666.3      680.6   
Marketplace
Total mutual    16  %    7   %     1,024.3    959.9      910.6      864.5      880.8   
fund assets
Equity and
other           13  %    10  %      772.3         702.4         705.5         670.4         685.0
securities
^(1)
Fixed income    1   %    (1  %)     180.5         181.8         181.8         180.5         179.4
securities
Margin loans    9   %    (1  %)    (11.4   )   (11.5   )   (11.2   )   (11.2   )   (10.5   )
outstanding
Total client    14  %    7   %    $ 2,084.9   $ 1,951.6   $ 1,890.4   $ 1,802.4   $ 1,833.5 
assets
                                                                                          
Client assets
by business
^(2)
Investor        13  %    7   %    $ 1,190.2     $ 1,112.1     $ 1,078.4     $ 1,027.7     $ 1,049.7
Services
Advisor         14  %    7   %     894.7      839.5      812.0      774.7      783.8   
Services
Total client
assets by       14  %    7   %    $ 2,084.9   $ 1,951.6   $ 1,890.4   $ 1,802.4   $ 1,833.5 
business
                                                                                          
Net growth in
assets in
client
accounts (for
the quarter
ended)
Net new
assets ^(2)
Investor
Services ^      9   %    (30 %)   $ 27.5        $ 39.1        $ 10.0        $ 5.4         $ 25.2
(3)
Advisor         16  %    (37 %)    15.9       25.3       10.4       10.6       13.7    
Services ^(4)
Total net new   12  %    (33 %)    43.4       64.4       20.4       16.0       38.9    
assets
Net market
(losses)        (23 %)   N/M       89.9       (3.2    )   67.6       (47.1   )   116.9   
gains
Net growth      (14 %)   118 %    $ 133.3     $ 61.2      $ 88.0      $ (31.1   )  $ 155.8   
(decline)
                                                                                          
New brokerage
accounts (in
thousands,      2   %    1   %      244           241           198           221           240
for the
quarter
ended)
Clients (in
thousands)
Active
Brokerage       3   %    1   %      8,865         8,787         8,736         8,720         8,639
Accounts ^(5)
Banking         11  %    3   %      888           865           844           822           801
Accounts
Corporate
Retirement      4   %    -         1,575      1,571      1,547      1,524      1,516   
Plan
Participants
                       

(1)  Excludes all proprietary money market, equity, and bond funds.
      In the first quarter of 2013, the Company realigned its reportable
      segments as a result of organizational changes. The Institutional
      segment was renamed to Advisor Services. The Retirement Plan Services,
(2)   Corporate Brokerage Retirement Products (formerly part of Retirement
      Business Services), and Corporate Brokerage Services business units were
      reallocated to the Investor Services segment. Prior period segment
      information has been recast to reflect this realignment.
      Includes inflows of $10.3 billion from certain mutual fund clearing
      services clients in the first quarter of 2013. Includes inflows of $21.1
      billion from certain mutual fund clearing services clients and outflows
(3)   of $900 million related to a planned transfer from Corporate Brokerage
      Services in the fourth quarter of 2012. Includes outflows of
      approximately $100 million as a result of the sale of Open E Cry, 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.
      Includes inflows of approximately $900 million as a result of the
(4)   acquisition of ThomasPartners, Inc., 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.
      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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