Schwab Reports Monthly Activity Highlights

  Schwab Reports Monthly Activity Highlights

                   Core Net New Assets Total $22.3 Billion

Business Wire

SAN FRANCISCO -- September 16, 2013

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

  *Core net new assets (before significant one-time flows) brought to the
    company by new and existing clients in August 2013 totaled $22.3 billion.
    Net new assets of negative $2.4 billion contained the following items:

       *Core flows of $22.3 billion, including inflows of $9.5 billion and
         $3.1 billion from certain mutual fund clearing services clients.
       *A reduction of $24.7 billion, reflecting changes to Schwab’s
         retirement plan business as discussed below.

  *Also reflecting the retirement plan business changes, total client assets
    were $2.08trillion as of month-end August, up 12% from August 2012 and
    down 2% compared to July 2013.
  *Client daily average trades were 467.3 thousand in August 2013, up 24%
    compared to August 2012 and down 6% compared to July 2013. August 2013
    trading activity included a 2% sequential increase in daily average
    revenue trades.

Schwab has decided to consolidate its two retirement plan recordkeeping
technology platforms. For the past six years, the company has supported both
the platform operated by the former 401(k) Company, which was acquired in
2007, and the Schwab Retirement Information (“SRI”) recordkeeping platform
utilized under its primary full-service bundled retirement plan offering.

Certain clients serviced on the acquired platform will be transitioned to the
SRI platform. Schwab will resign from providing recordkeeping services to
certain other clients. The retirement plans sponsored by these clients are
either unprofitable, include uniquely resource-intensive servicing provisions,
or are otherwise not an appropriate fit for Schwab’s retirement plan servicing
strategy.

Accordingly, Schwab has reduced its reported totals for overall client assets
and retirement plan participants (by $24.7 billion and 317,000, respectively)
to reflect the estimated impact of these changes. Financial impacts are not
expected to be material. Given the current interest rate environment and
financial market conditions, management believes the company remains on track
to deliver the 2013 financial performance discussed at its Business Update on
July 26, including a pre-tax profit margin of at least 30% and earnings per
share in the mid-$.70s for the year.

CFO Joe Martinetto commented, “This decision is part of the retirement plan
business strategy we’ve been sharing for some time, which includes the
development of a program combining low-cost, index-focused investment products
with personalized advice to help create better outcomes for participants. Our
current strategy also places a greater emphasis on client relationships that
enable Schwab to bring more of its capabilities to bear in serving
participants so we can maximize the value we deliver. With a more efficient
and focused single recordkeeping system, we can better leverage our resources
in serving both plan sponsors and participants, and we’re excited about the
opportunities for accelerating our growth in this arena.”

The SMART report can be viewed with its accompanying 12-month data at
www.aboutschwab.com/investor_relations/financial_reports.

Forward-Looking Statements

This press release contains forward-looking statements relating to the
company’s reduction in client assets and retirement plan participants and the
financial impact from the consolidation of two retirement plan recordkeeping
technology platforms; growth in revenues, earnings and profits; gap between
revenue and expense growth; expected revenues and expenses and offsets;
expenses; and pre-tax profit margin. Achievement of these expectations and
objectives is subject to risks and uncertainties that could cause actual
results to differ materially from the expressed expectations.

Important factors that may cause such differences include, but are not limited
to, the actual number of clients whose relationship with Schwab terminates as
a result of the consolidation of two retirement plan recordkeeping technology
platforms; general market conditions, including the level of interest rates,
equity valuations and trading activity; the company’s ability to attract and
retain clients and grow client assets/relationships; competitive pressures on
rates and fees; the level of client assets, including cash balances; the
company’s ability to monetize client assets; capital needs and management; the
company’s ability to manage expenses; the impact of changes in market
conditions on money market fund fee waivers, revenues, expenses and pre-tax
margins; the level of field sales activity and related incentive compensation;
regulatory guidance; acquisition integration costs; the volume of prepayments
in the company’s mortgage-backed securities portfolio; net interest margin;
client enrollments in advised solutions and utilization of commission-free
platforms; trading activity; the company’s ability to develop and launch new
products, services and capabilities in a timely and successful manner; 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-Q for the period ended June 30, 2013.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial
services, with more than 300offices and 9.0million active brokerage
accounts, 1.3million corporate retirement plan participants, 926,000banking
accounts, and $2.08 trillion in client assets as of August 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.

Contact:

MEDIA:
Charles Schwab
Greg Gable, 415-667-0473
or
INVESTORS/ANALYSTS:
Charles Schwab
Rich Fowler, 415-667-1841
 
Press spacebar to pause and continue. Press esc to stop.