Quarterly and Annual Core Net New Assets Total $162.2 Billion and $558.2 Billion, Both Records
Total Client Assets Reach a Record $8.14 Trillion at Year-end, up 22% Versus December 2020
WESTLAKE, Texas–(BUSINESS WIRE)–#CharlesSchwab–The Charles Schwab Corporation announced today that its net income for the fourth quarter of 2021 was a record $1.6 billion compared with $1.5 billion for the third quarter of 2021, and $1.1 billion for the fourth quarter of 2020. Net income for the twelve months ended December 31, 2021 was a record $5.9 billion, compared with $3.3 billion for the year-earlier period. The company’s financial results include TD Ameritrade from October 6, 2020 forward, as well as certain acquisition and integration-related costs and the amortization of acquired intangibles. For the fourth quarter and the twelve months of 2021, these transaction-related expenses totaled $255 million and $1.1 billion, respectively, on a pre-tax basis.
|
|
Three Months Ended |
|
% |
|
Twelve Months Ended |
|
% |
|||||||||||||||
|
Financial Highlights (1) |
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
|||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||
|
Net revenues (in millions) |
$ |
4,708 |
|
$ |
4,176 |
|
13 |
% |
$ |
18,520 |
|
$ |
11,691 |
|
58 |
% |
||||||
|
Net income (in millions) |
|
|
|
|
|
|
||||||||||||||||
|
GAAP |
$ |
1,580 |
|
$ |
1,135 |
|
39 |
% |
$ |
5,855 |
|
$ |
3,299 |
|
77 |
% |
||||||
|
Adjusted (1) |
$ |
1,775 |
|
$ |
1,459 |
|
22 |
% |
$ |
6,670 |
|
$ |
3,777 |
|
77 |
% |
||||||
|
Diluted earnings per common share |
|
|
|
|
|
|
||||||||||||||||
|
GAAP |
$ |
.76 |
|
$ |
.57 |
|
33 |
% |
$ |
2.83 |
|
$ |
2.12 |
|
33 |
% |
||||||
|
Adjusted (1) |
$ |
.86 |
|
$ |
.74 |
|
16 |
% |
$ |
3.25 |
|
$ |
2.45 |
|
33 |
% |
||||||
|
Pre-tax profit margin |
|
|
|
|
|
|
||||||||||||||||
|
GAAP |
|
43.0 |
% |
|
35.3 |
% |
|
|
41.6 |
% |
|
36.8 |
% |
|
||||||||
|
Adjusted (1) |
|
48.4 |
% |
|
45.6 |
% |
|
|
47.5 |
% |
|
42.2 |
% |
|
||||||||
|
Return on average common stockholders’ equity (annualized) |
|
12 |
% |
|
11 |
% |
|
|
11 |
% |
|
9 |
% |
|
||||||||
|
Return on tangible common equity (annualized) (1) |
|
24 |
% |
|
21 |
% |
|
|
22 |
% |
|
15 |
% |
|
||||||||
| Note: All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding. | ||
|
(1) |
Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 11-12 of this release. |
|
CEO Walt Bettinger said, “We delivered another year of record-breaking growth and financial performance in 2021 by staying true to our ‘Through Clients’ Eyes’ strategy in the face of a fluctuating environment. That shifting picture included strengthening investor optimism early on, fueled by an advancing economic recovery, expanding vaccine rollouts and government aid packages. Then came increasing debates regarding the overall pace of economic growth, the potential path of inflation, and the ultimate impact of multiple global market disruptions. After rising throughout the first half of 2021, the major equity indices were essentially flat during the summer months before the ongoing recovery helped them close the year at near-record levels. While short-term interest rates remained near zero throughout the year, longer-term rates began to rise initially, then eased and rose again in keeping with the economic outlook – the 10-year Treasury yield finally ended 2021 at 1.52%, up 59 basis points from year-end 2020.”
Mr. Bettinger continued, “Investors remained actively engaged with the markets throughout the year, and our competitive positioning as a trusted financial partner offering both value and service continued to resonate in the marketplace. While some measures of engagement eased from the extraordinary levels seen during the first quarter 2021 ‘re-opening’ surge, activity generally exceeded the fourth quarter of 2020, when we included TD Ameritrade in our results for the first time, and core net new assets set yet another record over the final three months of 2021 at $162.2 billion. Clients brought us $80.3 billion in December alone, 28% above our prior single-month record, and our full-year total of $558.2 billion represents an 8% annual organic growth rate. We ended the year with $8.14 trillion in client assets across 33.2 million brokerage accounts, increases of 22% and 12%, respectively.”
Mr. Bettinger added, “Even as we worked to support unprecedented levels of client activity during 2021, the Schwab team continued to drive progress across our key strategic priorities of scale and efficiency, win-win monetization, and segmentation. We kept the TDA integration on track, launched a newly combined version of our Schwab Advisor Network referral program, and hired over 3,000 client service professionals. We broadened our clients’ access to fixed income investment choices by launching and expanding our Wasmer Schroeder™ Strategies lineup of separately managed accounts, which now spans 25 taxable and non-taxable alternatives, including several positive impact strategies. We also added another option for clients to incorporate environmental, social and governance (ESG) factor-based investing in their portfolios by collaborating with Ariel Investments, LLC to launch the Schwab® Ariel ESG ETF, our first proprietary ESG fund and first active ETF. Additionally, we enhanced the digital onboarding experience for new accounts opened by the independent advisors who custody with Schwab, and we expanded their access to Schwab Advisor Portfolio Connect®, our proprietary portfolio management capability. Other noteworthy client initiatives included the addition of person-to-person payment capabilities via Zelle® and the introduction of the Schwab Starter Kit™, a new experience designed to support first-time investors with tailored educational content and tools, along with $50 in funding for an initial purchase of fractional shares, to help them develop their knowledge and confidence as they begin to build their financial futures with us. Clients continued to turn to us as a trusted source of help and guidance throughout 2021 – assets enrolled in one of our advisory offerings rose to $559.2 billion across Investor Services by year-end, up 19% from year-earlier levels. Furthermore, utilization of our bank lending capabilities rose at an even faster pace last year, with outstanding balances of mortgage loans and secured credit lines rising by a combined total of $11.0 billion, or 48%, during 2021 to end the year at $33.8 billion.”
Mr. Bettinger concluded, “Successfully focusing on quality client service while pushing forward with firm-wide initiatives to build a stronger and more capable company would be demanding in any environment. I believe doing so amidst the tumult of the last few years is truly extraordinary. I can’t say this enough – Schwab’s achievements are only possible because thousands of talented individuals show up for work every day, ready to continue creating a better version of modern wealth management for our clients. Following four recent acquisitions, including the largest brokerage transaction in history, I’m particularly proud of our progress in uniting as a single team, pulling in the same direction through challenge after challenge, supporting each other and our clients as we pursue Chuck Schwab’s vision. I share his excitement and passion for our combined organization’s potential, and remain convinced we have the talent, culture, and client-first strategy needed to pursue the tremendous growth opportunities ahead of us.”
CFO Peter Crawford said, “Our fourth quarter and full-year 2021 financial results demonstrate the impressive performance that our all-weather business model can produce when our strong business momentum aligns with easing macroeconomic headwinds. With interest rates stabilizing and even rebounding somewhat to end above year-end 2020 levels, fourth quarter net interest revenue increased 18% over the year-earlier period, as strong asset gathering helped lift investment portfolio balances while client utilization of our range of lending products continued to expand. Asset management and administration fees were up 12% year-over-year due to rising balances in advisory solutions, as well as proprietary and third-party mutual funds and ETFs. Including 19% growth in trading revenue driven by higher activity levels, our total fourth quarter revenues were up 13% to $4.7 billion. Pivoting to expenses, our total GAAP spending was essentially flat versus a year ago at $2.7 billion, which included $101 million in acquisition and integration-related costs and $154 million in amortization of acquired intangibles. Adjusted total expenses(1) were up 7% year-over-year, reflecting robust client engagement and business growth, as well as the 5% employee salary increase that went into effect at the end of September. Strong revenue growth and disciplined expense management enabled us to produce a 43.0% pre-tax profit margin for the fourth quarter – 48.4% on an adjusted basis(1) – and helped our full-year margins reach 41.6% and 47.5%, respectively. I believe that achieving this level of profitability in 2021, on revenues that approached $19 billion despite the persistence of historically low interest rates, is a testament to the combined Schwab team’s relentless attention to driving scale and efficiency – that’s what enables us to provide clients with the service they trust us to deliver while continuing to invest in our strategic agenda.”
Mr. Crawford added, “Our balance sheet expanded to end 2021 with total assets of $667 billion, up 22% versus December 31, 2020. Last year’s increase was driven primarily by client asset flows, as well as approximately $10 billion in bank deposit account migrations. We also added a net $10.2 billion to outstanding debt largely for liquidity management purposes, and increased preferred stock by $2.3 billion to help support continued business growth. The company’s preliminary Tier 1 Leverage Ratio was 6.2% at year-end 2021. Our ongoing capital management and healthy financial performance helped support consistently solid returns on capital throughout the year – we delivered a double-digit return on equity and a ROTCE(1) of at least 20% every quarter, ending with full-year results of 11% and 22%, respectively.”
Mr. Crawford concluded, “The operating environment, our own strategic and competitive success, and unprecedented levels of client engagement and activity all came together in 2021 to help us deliver impressive financial performance. No one could have predicted the way the year would unfold, and we certainly can’t predict what 2022 holds in store for us. What we have long known, however, and what the events of 2021 have reinforced, is that success with clients and consistent growth over time is only made possible by managing for the long-term and by putting clients first, serving them with clarity and focus in all environments. Maintaining a rock-solid balance sheet and robust capital position enables us to concentrate on leveraging our client focus into sustained business momentum that helps build long-term stockholder value.”
|
(1) |
Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 11-12 of this release. |
|
Commentary from the CFO
Periodically, our Chief Financial Officer provides insight and commentary regarding Schwab’s financial picture at: https://www.aboutschwab.com/cfo-commentary. The most recent commentary, which provides perspective on recent account activity, was posted on May 14, 2021.
Winter Business Update
The company has scheduled a Winter Business Update for institutional investors on Friday, January 28, 2022. The Update, which will be held via webcast, is scheduled to run from approximately 8:00 a.m. – 12:30 p.m. PT, 11:00 a.m. – 3:30 p.m. ET. Registration for this Update is accessible at https://www.aboutschwab.com/schwabevents.
Forward-Looking Statements
This press release contains forward-looking statements relating to strategic priorities; TD Ameritrade integration; investments to attract and retain talent, improve service and the client experience, expand products, services and offerings to meet client needs, diversify revenues, and drive scale and efficiency; growth opportunities; business momentum; balance sheet and capital position; growth in the client base, accounts, and assets; and stockholder value. These forward-looking statements reflect management’s expectations as of the date hereof. 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 company’s ability to develop and launch new and enhanced products, services, and capabilities, as well as enhance its infrastructure and capacity, in a timely and successful manner; hire and retain talent; successfully implement integration strategies and plans; support client activity levels; monetize client assets; attract and retain clients and independent investment advisors and grow those relationships and client assets; and manage expenses. Other important factors include general market conditions, including equity valuations, trading activity, and the level of interest rates – which can impact money market fund fee waivers; market volatility; client use of the company’s advisory solutions and other products and services; client sensitivity to rates; level of client assets, including cash balances; capital and liquidity needs and management; the migration of bank deposit account balances; balance sheet cash; the scope and duration of the COVID-19 pandemic and actions taken by governmental authorities to contain the spread of the virus and the economic impact; adverse developments in the resolution and settlement amount of the pending regulatory matter; and other factors set forth in the company’s most recent reports on Form 10-K and Form 10-Q.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 33.2 million active brokerage accounts, 2.2 million corporate retirement plan participants, 1.5 million banking accounts, and approximately $8.14 trillion in client assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiaries, Charles Schwab & Co., Inc., TD Ameritrade, Inc., and TD Ameritrade Clearing, Inc., (members SIPC, https://www.sipc.org), and their 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 primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com.
TD Ameritrade, Inc. and TD Ameritrade Clearing, Inc. are separate but affiliated companies and subsidiaries of TD Ameritrade Holding Corporation. TD Ameritrade Holding Corporation is a wholly owned subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank.
|
THE CHARLES SCHWAB CORPORATION |
||||||||||||||||
|
Consolidated Statements of Income |
||||||||||||||||
|
(In millions, except per share amounts) |
||||||||||||||||
|
(Unaudited) |
||||||||||||||||
|
|
|
|
||||||||||||||
|
|
Three Months Ended |
Twelve Months Ended |
||||||||||||||
|
|
2021 |
2020 |
2021 |
2020 |
||||||||||||
|
Net Revenues |
|
|
|
|
||||||||||||
|
Interest revenue |
$ |
2,270 |
|
$ |
1,905 |
|
$ |
8,506 |
|
$ |
6,531 |
|
||||
|
Interest expense |
|
(128 |
) |
|
(96 |
) |
|
(476 |
) |
|
(418 |
) |
||||
|
Net interest revenue |
|
2,142 |
|
|
1,809 |
|
|
8,030 |
|
|
6,113 |
|
||||
|
Asset management and administration fees (1) |
|
1,110 |
|
|
987 |
|
|
4,274 |
|
|
3,475 |
|
||||
|
Trading revenue |
|
1,017 |
|
|
854 |
|
|
4,152 |
|
|
1,416 |
|
||||
|
Bank deposit account fees |
|
304 |
|
|
355 |
|
|
1,315 |
|
|
355 |
|
||||
|
Other |
|
135 |
|
|
171 |
|
|
749 |
|
|
332 |
|
||||
|
Total net revenues |
|
4,708 |
|
|
4,176 |
|
|
18,520 |
|
|
11,691 |
|
||||
|
Expenses Excluding Interest |
|
|
|
|
||||||||||||
|
Compensation and benefits |
|
1,399 |
|
|
1,398 |
|
|
5,450 |
|
|
3,954 |
|
||||
|
Professional services |
|
271 |
|
|
269 |
|
|
994 |
|
|
843 |
|
||||
|
Occupancy and equipment |
|
254 |
|
|
254 |
|
|
976 |
|
|
703 |
|
||||
|
Advertising and market development |
|
122 |
|
|
123 |
|
|
485 |
|
|
326 |
|
||||
|
Communications |
|
130 |
|
|
127 |
|
|
587 |
|
|
353 |
|
||||
|
Depreciation and amortization |
|
145 |
|
|
130 |
|
|
549 |
|
|
414 |
|
||||
|
Amortization of acquired intangible assets |
|
154 |
|
|
147 |
|
|
615 |
|
|
190 |
|
||||
|
Regulatory fees and assessments |
|
67 |
|
|
57 |
|
|
275 |
|
|
163 |
|
||||
|
Other |
|
143 |
|
|
195 |
|
|
876 |
|
|
445 |
|
||||
|
Total expenses excluding interest |
|
2,685 |
|
|
2,700 |
|
|
10,807 |
|
|
7,391 |
|
||||
|
Income before taxes on income |
|
2,023 |
|
|
1,476 |
|
|
7,713 |
|
|
4,300 |
|
||||
|
Taxes on income |
|
443 |
|
|
341 |
|
|
1,858 |
|
|
1,001 |
|
||||
|
Net Income |
|
1,580 |
|
|
1,135 |
|
|
5,855 |
|
|
3,299 |
|
||||
|
Preferred stock dividends and other |
|
131 |
|
|
85 |
|
|
495 |
|
|
256 |
|
||||
|
Net Income Available to Common Stockholders |
$ |
1,449 |
|
$ |
1,050 |
|
$ |
5,360 |
|
$ |
3,043 |
|
||||
|
Weighted-Average Common Shares Outstanding: |
|
|
|
|
||||||||||||
|
Basic |
|
1,892 |
|
|
1,848 |
|
|
1,887 |
|
|
1,429 |
|
||||
|
Diluted |
|
1,902 |
|
|
1,855 |
|
|
1,897 |
|
|
1,435 |
|
||||
|
Earnings Per Common Shares Outstanding (2): |
|
|
|
|
||||||||||||
|
Basic |
$ |
.77 |
|
$ |
.57 |
|
$ |
2.84 |
|
$ |
2.13 |
|
||||
|
Diluted |
$ |
.76 |
|
$ |
.57 |
|
$ |
2.83 |
|
$ |
2.12 |
|
||||
|
(1) |
Includes fee waivers of $80 million and $326 million for the three and twelve months ended December 31, 2021, respectively, and $68 million and $127 million for the three and twelve months ended December 31, 2020, respectively. |
|
|
(2) |
The Company has voting and nonvoting common stock outstanding. As the participation rights, including dividend and liquidation rights, are identical between the voting and nonvoting stock classes, basic and diluted earnings per share are the same for each class. |
|
|
THE CHARLES SCHWAB CORPORATION |
||||||||||||||||||||||||||
|
Financial and Operating Highlights |
||||||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||||||
|
|
Q4-21 % change |
|
2021 |
|
2020 |
|||||||||||||||||||||
|
|
vs. |
|
vs. |
|
Fourth |
|
Third |
|
Second |
|
First |
|
Fourth |
|||||||||||||
|
(In millions, except per share amounts and as noted) |
Q4-20 |
|
Q3-21 |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|||||||||||||
|
Net Revenues |
|
|
|
|
|
|
|
|||||||||||||||||||
|
Net interest revenue |
18 |
% |
6 |
% |
$ |
2,142 |
|
$ |
2,030 |
|
$ |
1,947 |
|
$ |
1,911 |
|
$ |
1,809 |
|
|||||||
|
Asset management and administration fees |
12 |
% |
1 |
% |
|
1,110 |
|
|
1,101 |
|
|
1,047 |
|
|
1,016 |
|
|
987 |
|
|||||||
|
Trading revenue |
19 |
% |
5 |
% |
|
1,017 |
|
|
964 |
|
|
955 |
|
|
1,216 |
|
|
854 |
|
|||||||
|
Bank deposit account fees |
(14 |
)% |
(6 |
)% |
|
304 |
|
|
323 |
|
|
337 |
|
|
351 |
|
|
355 |
|
|||||||
|
Other |
(21 |
)% |
(11 |
)% |
|
135 |
|
|
152 |
|
|
241 |
|
|
221 |
|
|
171 |
|
|||||||
|
Total net revenues |
13 |
% |
3 |
% |
|
4,708 |
|
|
4,570 |
|
|
4,527 |
|
|
4,715 |
|
|
4,176 |
|
|||||||
|
Expenses Excluding Interest |
|
|
|
|
|
|
|
|||||||||||||||||||
|
Compensation and benefits |
— |
|
7 |
% |
|
1,399 |
|
|
1,303 |
|
|
1,318 |
|
|
1,430 |
|
|
1,398 |
|
|||||||
|
Professional services |
1 |
% |
8 |
% |
|
271 |
|
|
250 |
|
|
247 |
|
|
226 |
|
|
269 |
|
|||||||
|
Occupancy and equipment |
— |
|
3 |
% |
|
254 |
|
|
246 |
|
|
239 |
|
|
237 |
|
|
254 |
|
|||||||
|
Advertising and market development |
(1 |
)% |
3 |
% |
|
122 |
|
|
119 |
|
|
128 |
|
|
116 |
|
|
123 |
|
|||||||
|
Communications |
2 |
% |
(10 |
)% |
|
130 |
|
|
144 |
|
|
166 |
|
|
147 |
|
|
127 |
|
|||||||
|
Depreciation and amortization |
12 |
% |
4 |
% |
|
145 |
|
|
140 |
|
|
135 |
|
|
129 |
|
|
130 |
|
|||||||
|
Amortization of acquired intangible assets |
5 |
% |
1 |
% |
|
154 |
|
|
153 |
|
|
154 |
|
|
154 |
|
|
147 |
|
|||||||
|
Regulatory fees and assessments |
18 |
% |
5 |
% |
|
67 |
|
|
64 |
|
|
66 |
|
|
78 |
|
|
57 |
|
|||||||
|
Other |
(27 |
)% |
2 |
% |
|
143 |
|
|
140 |
|
|
355 |
|
|
238 |
|
|
195 |
|
|||||||
|
Total expenses excluding interest |
(1 |
)% |
5 |
% |
|
2,685 |
|
|
2,559 |
|
|
2,808 |
|
|
2,755 |
|
|
2,700 |
|
|||||||
|
Income before taxes on income |
37 |
% |
1 |
% |
|
2,023 |
|
|
2,011 |
|
|
1,719 |
|
|
1,960 |
|
|
1,476 |
|
|||||||
|
Taxes on income |
30 |
% |
(9 |
)% |
|
443 |
|
|
485 |
|
|
454 |
|
|
476 |
|
|
341 |
|
|||||||
|
Net Income |
39 |
% |
4 |
% |
$ |
1,580 |
|
$ |
1,526 |
|
$ |
1,265 |
|
$ |
1,484 |
|
$ |
1,135 |
|
|||||||
|
Preferred stock dividends and other |
54 |
% |
9 |
% |
|
131 |
|
|
120 |
|
|
148 |
|
|
96 |
|
|
85 |
|
|||||||
|
Net Income Available to Common Stockholders |
38 |
% |
3 |
% |
$ |
1,449 |
|
$ |
1,406 |
|
$ |
1,117 |
|
$ |
1,388 |
|
$ |
1,050 |
|
|||||||
|
Earnings per common share (1): |
|
|
|
|
|
|
|
|||||||||||||||||||
|
Basic |
35 |
% |
4 |
% |
$ |
.77 |
|
$ |
.74 |
|
$ |
.59 |
|
$ |
.74 |
|
$ |
.57 |
|
|||||||
|
Diluted |
33 |
% |
3 |
% |
$ |
.76 |
|
$ |
.74 |
|
$ |
.59 |
|
$ |
.73 |
|
$ |
.57 |
|
|||||||
|
Dividends declared per common share |
— |
|
— |
|
$ |
.18 |
|
$ |
.18 |
|
$ |
.18 |
|
$ |
.18 |
|
$ |
.18 |
|
|||||||
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|||||||||||||||||||
|
Basic |
2 |
% |
— |
|
|
1,892 |
|
|
1,888 |
|
|
1,886 |
|
|
1,882 |
|
|
1,848 |
|
|||||||
|
Diluted |
3 |
% |
— |
|
|
1,902 |
|
|
1,898 |
|
|
1,896 |
|
|
1,892 |
|
|
1,855 |
|
|||||||
|
Performance Measures |
|
|
|
|
|
|
|
|||||||||||||||||||
|
Pre-tax profit margin |
|
|
|
43.0 |
% |
|
44.0 |
% |
|
38.0 |
% |
|
41.6 |
% |
|
35.3 |
% |
|||||||||
|
Return on average common stockholders’ equity (annualized) (2) |
|
|
|
12 |
% |
|
12 |
% |
|
10 |
% |
|
12 |
% |
|
11 |
% |
|||||||||
|
Financial Condition (at quarter end, in billions) |
|
|
|
|
|
|
|
|||||||||||||||||||
|
Cash and cash equivalents |
56 |
% |
84 |
% |
$ |
63.0 |
|
$ |
34.3 |
|
$ |
30.3 |
|
$ |
48.6 |
|
$ |
40.3 |
|
|||||||
|
Cash and investments segregated |
7 |
% |
27 |
% |
|
53.9 |
|
|
42.3 |
|
|
39.9 |
|
|
40.4 |
|
|
50.4 |
|
|||||||
|
Receivables from brokerage clients — net |
41 |
% |
5 |
% |
|
90.6 |
|
|
86.6 |
|
|
82.2 |
|
|
74.7 |
|
|
64.4 |
|
|||||||
|
Available for sale securities |
16 |
% |
3 |
% |
|
390.1 |
|
|
377.0 |
|
|
359.6 |
|
|
341.6 |
|
|
337.4 |
|
|||||||
|
Bank loans — net |
45 |
% |
9 |
% |
|
34.6 |
|
|
31.6 |
|
|
28.9 |
|
|
25.4 |
|
|
23.8 |
|
|||||||
|
Total assets |
22 |
% |
10 |
% |
|
667.3 |
|
|
607.5 |
|
|
574.5 |
|
|
563.5 |
|
|
549.0 |
|
|||||||
|
Bank deposits |
24 |
% |
12 |
% |
|
443.8 |
|
|
395.3 |
|
|
368.6 |
|
|
369.9 |
|
|
358.0 |
|
|||||||
|
Payables to brokerage clients |
21 |
% |
11 |
% |
|
125.7 |
|
|
113.1 |
|
|
105.0 |
|
|
101.3 |
|
|
104.2 |
|
|||||||
|
Short-term borrowings |
N/M |
|
63 |
% |
|
4.9 |
|
|
3.0 |
|
|
3.5 |
|
|
2.5 |
|
|
— |
|
|||||||
|
Long-term debt |
39 |
% |
(3 |
)% |
|
18.9 |
|
|
19.5 |
|
|
18.7 |
|
|
17.7 |
|
|
13.6 |
|
|||||||
|
Stockholders’ equity |
— |
|
(2 |
)% |
|
56.3 |
|
|
57.4 |
|
|
57.5 |
|
|
55.6 |
|
|
56.1 |
|
|||||||
|
Other |
|
|
|
|
|
|
|
|||||||||||||||||||
|
Full-time equivalent employees (at quarter end, in thousands) |
4 |
% |
3 |
% |
|
33.4 |
|
|
32.4 |
|
|
32.5 |
|
|
32.0 |
|
|
32.0 |
|
|||||||
|
Capital expenditures — purchases of equipment, office facilities, and property, net (in millions) |
116 |
% |
145 |
% |
$ |
431 |
|
$ |
176 |
|
$ |
225 |
|
$ |
209 |
|
$ |
200 |
|
|||||||
|
Expenses excluding interest as a percentage of average client assets (annualized) |
|
|
|
0.13 |
% |
|
0.13 |
% |
|
0.15 |
% |
|
0.16 |
% |
|
0.17 |
% |
|||||||||
|
Clients’ Daily Average Trades (DATs) (in thousands) |
5 |
% |
10 |
% |
|
6,102 |
|
|
5,549 |
|
|
6,042 |
|
|
8,414 |
|
|
5,796 |
|
|||||||
|
Number of Trading Days |
1 |
% |
(1 |
)% |
|
63.5 |
|
|
64.0 |
|
|
63.0 |
|
|
61.0 |
|
|
63.0 |
|
|||||||
|
Revenue Per Trade (3) |
12 |
% |
(3 |
)% |
$ |
2.62 |
|
$ |
2.71 |
|
$ |
2.51 |
|
$ |
2.37 |
|
$ |
2.34 |
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Note: The above table reflects the recognition of TD Ameritrade’s assets acquired and liabilities assumed at fair value as of October 6, 2020. Results of operations and metrics are inclusive of TD Ameritrade beginning October 6, 2020. | ||
|
(1) |
The Company has voting and nonvoting common stock outstanding. As the participation rights, including dividend and liquidation rights, are identical between the voting and nonvoting stock classes, basic and diluted earnings per share are the same for each class. |
|
|
(2) |
Return on average common stockholders’ equity is calculated using net income available to common stockholders divided by average common stockholders’ equity. |
|
|
(3) |
Revenue per trade is calculated as trading revenue divided by DATs multiplied by the number of trading days. |
|
| N/M Not meaningful. Percentage changes greater than 200% are presented as not meaningful. | ||
|
THE CHARLES SCHWAB CORPORATION |
|||||||||||||||||||||||||||||||||||||||||||
|
Net Interest Revenue Information |
|||||||||||||||||||||||||||||||||||||||||||
|
(In millions, except ratios or as noted) |
|||||||||||||||||||||||||||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
||||||||||||||||||||||||||||||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
||||||||||||||||||||||||||||||||
|
|
|
Average |
|
Interest |
|
Average |
|
|
Average |
|
Interest |
|
Average |
|
|
Average |
|
Interest |
|
Average |
|
|
Average |
|
Interest |
|
Average |
||||||||||||||||
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
|
Cash and cash equivalents |
$ |
41,735 |
$ |
13 |
|
0.11 |
% |
$ |
35,008 |
$ |
8 |
|
0.09 |
% |
$ |
40,325 |
$ |
40 |
|
0.10 |
% |
$ |
39,052 |
$ |
120 |
|
0.30 |
% |
|||||||||||||||
|
Cash and investments segregated |
|
44,027 |
|
5 |
|
0.05 |
% |
|
45,828 |
|
13 |
|
0.11 |
% |
|
43,942 |
|
24 |
|
0.05 |
% |
|
34,100 |
|
141 |
|
0.41 |
% |
|||||||||||||||
|
Receivables from brokerage clients |
|
86,485 |
|
655 |
|
2.97 |
% |
|
53,719 |
|
444 |
|
3.23 |
% |
|
77,768 |
|
2,455 |
|
3.11 |
% |
|
28,058 |
|
848 |
|
2.97 |
% |
|||||||||||||||
|
Available for sale securities (1) |
|
382,776 |
|
1,260 |
|
1.31 |
% |
|
305,231 |
|
1,103 |
|
1.44 |
% |
|
357,122 |
|
4,641 |
|
1.30 |
% |
|
253,555 |
|
4,537 |
|
1.78 |
% |
|||||||||||||||
|
Bank loans |
|
33,102 |
|
172 |
|
2.08 |
% |
|
22,971 |
|
134 |
|
2.34 |
% |
|
28,789 |
|
620 |
|
2.15 |
% |
|
20,932 |
|
545 |
|
2.60 |
% |
|||||||||||||||
|
Total interest-earning assets |
|
588,125 |
|
2,105 |
|
1.42 |
% |
|
462,757 |
|
1,702 |
|
1.46 |
% |
|
547,946 |
|
7,780 |
|
1.41 |
% |
|
375,697 |
|
6,191 |
|
1.64 |
% |
|||||||||||||||
|
Securities lending revenue |
|
|
163 |
|
|
|
|
201 |
|
|
|
|
720 |
|
|
|
|
334 |
|
|
|||||||||||||||||||||||
|
Other interest revenue |
|
|
2 |
|
|
|
|
2 |
|
|
|
|
6 |
|
|
|
|
6 |
|
|
|||||||||||||||||||||||
|
Total interest-earning assets |
$ |
588,125 |
$ |
2,270 |
|
1.53 |
% |
$ |
462,757 |
$ |
1,905 |
|
1.63 |
% |
$ |
547,946 |
$ |
8,506 |
|
1.54 |
% |
$ |
375,697 |
$ |
6,531 |
|
1.73 |
% |
|||||||||||||||
|
Funding sources |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
|
Bank deposits |
$ |
409,961 |
$ |
14 |
|
0.01 |
% |
$ |
336,912 |
$ |
12 |
|
0.01 |
% |
$ |
381,549 |
$ |
54 |
|
0.01 |
% |
$ |
291,206 |
$ |
93 |
|
0.03 |
% |
|||||||||||||||
|
Payables to brokerage clients |
|
99,325 |
|
2 |
|
0.01 |
% |
|
77,160 |
|
2 |
|
0.01 |
% |
|
91,667 |
|
9 |
|
0.01 |
% |
|
46,347 |
|
12 |
|
0.02 |
% |
|||||||||||||||
|
Short-term borrowings (2) |
|
4,294 |
|
3 |
|
0.27 |
% |
|
306 |
|
— |
|
0.19 |
% |
|
3,040 |
|
9 |
|
0.30 |
% |
|
89 |
|
— |
|
0.20 |
% |
|||||||||||||||
|
Long-term debt |
|
19,124 |
|
103 |
|
2.14 |
% |
|
11,903 |
|
77 |
|
2.59 |
% |
|
17,704 |
|
384 |
|
2.17 |
% |
|
8,992 |
|
289 |
|
3.22 |
% |
|||||||||||||||
|
Total interest-bearing liabilities |
|
532,704 |
|
122 |
|
0.09 |
% |
|
426,281 |
|
91 |
|
0.09 |
% |
|
493,960 |
|
456 |
|
0.09 |
% |
|
346,634 |
|
394 |
|
0.11 |
% |
|||||||||||||||
|
Non-interest-bearing funding sources |
|
55,421 |
|
|
|
36,476 |
|
|
|
53,986 |
|
|
|
29,063 |
|
|
|||||||||||||||||||||||||||
|
Securities lending expense |
|
|
8 |
|
|
|
|
7 |
|
|
|
|
24 |
|
|
|
|
33 |
|
|
|||||||||||||||||||||||
|
Other interest expense |
|
|
(2 |
) |
|
|
|
(2 |
) |
|
|
|
(4 |
) |
|
|
|
(9 |
) |
|
|||||||||||||||||||||||
|
Total funding sources |
$ |
588,125 |
$ |
128 |
|
0.09 |
% |
$ |
462,757 |
$ |
96 |
|
0.08 |
% |
$ |
547,946 |
$ |
476 |
|
0.09 |
% |
$ |
375,697 |
$ |
418 |
|
0.11 |
% |
|||||||||||||||
|
Net interest revenue |
|
$ |
2,142 |
|
1.44 |
% |
|
$ |
1,809 |
|
1.55 |
% |
|
$ |
8,030 |
|
1.45 |
% |
|
$ |
6,113 |
|
1.62 |
% |
|||||||||||||||||||
Contacts
MEDIA:
Mayura Hooper
Charles Schwab
Phone: 415-667-1525
INVESTORS/ANALYSTS:
Jeff Edwards
Charles Schwab
Phone: 415-667-1524
