Core Net New Assets Rise 33% to a Record $281.9
Billion for the Year, Including $61.7 Billion in December
Total Client Assets Reach a Record $6.69
Trillion at Year-End, Up 66%
The Charles Schwab Corporation announced today that its net
income for the fourth quarter of 2020 was $1.1 billion, compared
with $698 million for the third quarter of 2020, and $852 million
for the fourth quarter of 2019. Net income for the twelve months
ended December 31, 2020 was $3.3 billion, compared with $3.7
billion for the year-earlier period. The company’s financial
results include TD Ameritrade from closing on October 6, 2020
forward, as well as certain acquisition and integration-related
costs and the amortization of acquired intangibles. Together these
transaction-related expenses totaled $429 million and $632 million
on a pre-tax basis, for the fourth quarter and full-year 2020,
respectively.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20210119005104/en/
Beginning with the second quarter of 2020, the company’s
financial presentations include references to adjusted measures of
expenses, net income, diluted earnings per common share, and
pre-tax profit margin, as well as return on tangible common equity
(ROTCE), which are intended to help investors evaluate Schwab’s
operating performance as well as facilitate a meaningful comparison
of our current results to both historic and future periods.
Three Months Ended December
31,
%
Twelve Months Ended December
31,
%
Financial Highlights
2020
2019
Change
2020
2019
Change
Net revenues (in millions)
$
4,176
$
2,606
60%
$
11,691
$
10,721
9%
Net income (in millions)
GAAP
$
1,135
$
852
33%
$
3,299
$
3,704
(11)%
Adjusted (1)
$
1,459
$
871
68%
$
3,777
$
3,744
1%
Diluted earnings per common share
GAAP
$
.57
$
.62
(8)%
$
2.12
$
2.67
(21)%
Adjusted (1)
$
.74
$
.63
17%
$
2.45
$
2.70
(9)%
Pre-tax profit margin
GAAP
35.3
%
42.7
%
36.8
%
45.2
%
Adjusted (1)
45.6
%
43.6
%
42.2
%
45.7
%
Return on average common
stockholders’ equity (annualized)
11
%
17
%
9
%
19
%
Return on tangible
common equity (annualized) (1)
21
%
19
%
15
%
21
%
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 reported results
are included on pages 11-12 of this release.
CEO Walt Bettinger said, “Producing record operating performance
and closing the largest brokerage acquisition in history during the
fourth quarter of 2020 was an extraordinary capstone to an
extraordinary year. Schwab’s unrelenting commitment to seeing
through clients’ eyes helped us not only stand tall throughout the
events of the past twelve months, but also enabled us to enter 2021
larger, stronger, and more capable of serving clients than
ever.”
“The impact of COVID-19, along with social and political
turmoil, created an unprecedented combination of personal and
macroeconomic challenges for our clients, employees and
stockholders alike,” Mr. Bettinger continued. “The pandemic’s rapid
escalation in early 2020 was accompanied by volatile equity markets
and further easing of monetary policy. As the year progressed,
government aid packages and vaccine developments helped settle the
markets, with the S&P 500® eventually erasing its
pandemic-related losses to finish up 16% from December 2019.
Against this backdrop, client engagement with the financial markets
rose to record levels – pro-forma combined new-to-firm households
increased more than 175% compared to 2019, with the number of
households placing trades up more than 50% year-over-year. Our
clients also continued to set numerous single-day trading records,
including a peak of 7.8 million trades on November 9. As we
collectively focused on helping clients navigate the trials of this
environment, they rewarded us with a record $281.9 billion in core
net new assets – including a record $119.4 billion in the fourth
quarter – exceeding $200 billion for the third consecutive year. At
December 31, total client assets reached a record of $6.69 trillion
spread across 29.6 million brokerage accounts, up 66% and 140%,
respectively, from a year ago.”
Mr. Bettinger added, “Throughout 2020, we persisted in executing
our strategy, working tirelessly to reinforce our overall value
proposition and share the benefits of increased scale with our
clients. Notable solutions introduced during the year included
Schwab Intelligent Income® and Schwab PlanTM, each designed to
assist with key investing and planning needs. In addition, we made
several enhancements to our mobile app – which supported 2.6
million unique users during the year, up 54% from 2019 – such as
the integration of Schwab Intelligent Portfolios® as well as the
launch of Schwab Assistant, a chatbot that enables clients to
intuitively perform tasks on-demand. Our ongoing investments in
technology that improve both the client experience and our
efficiency helped us to accommodate unprecedented levels of
activity in 2020 – Schwab alone handled 2.3 billion total
interactions across web, mobile, chat, and direct messaging. Access
to guidance remains extremely important in this environment.
Advised assets made up roughly half of our overall client assets at
December 31, and assets enrolled in digital advisory ended the year
at $57.9 billion, up 18%. For our registered investment advisor
clients, we’ve made strides in improving our service delivery by
better aligning advisors with the teams and resources that support
their particular needs. Additionally, we continued to expand our
digital service capabilities to help advisors more seamlessly and
efficiently support existing clients, cultivate new relationships,
and scale their businesses. We also celebrated the 30th anniversary
of Schwab IMPACT® with a virtual format that included advisors who
custody client assets with TD Ameritrade for the first time. The
conference brought together participants from around the country in
an interactive forum, with a record 2,200 advisors in attendance.
Our focus remains unchanged as we work to create a combined
custodian positioned to deliver top-quality service and value to
advisors of all sizes across a rapidly growing industry.
“In addition to TD Ameritrade, we also successfully closed three
other acquisitions during the year, which each support our key
strategic initiatives in unique ways. The USAA transaction added
incremental scale as we welcomed over 1 million new accounts and
$80 billion in brokerage and wealth management client assets, as
well as a long-term referral arrangement, which is well underway.
The acquisition of Motif’s technology and hiring of their staff
enables us to accelerate progress on personalized investing
capabilities. Similarly, Wasmer SchroederTM Strategies advances our
efforts to develop proprietary solutions that benefit clients by
allowing us to deliver a range of fixed income offerings designed
specifically to meet our clients’ needs. And finally, TD Ameritrade
not only builds scale, but also supports our ability to meet
specific needs across client segments.”
Mr. Bettinger concluded, “As I reflect on 2020, I feel a deep
sense of gratitude – to our clients, for entrusting us with record
levels of new business, to our employees for their diligent
commitment to serving others while balancing the health and safety
of their own families, and to our stockholders, for focusing on the
long-term, despite a volatile year and another round of
accommodative interest rate policies instituted by the Federal
Reserve. Pulling off our to-do list in an environment like the past
twelve months takes a very special team, and I am more certain than
ever that we have the talent, culture, and client-first strategy
needed to successfully pursue the tremendous growth opportunities
still ahead of us.”
CFO Peter Crawford commented, “Schwab’s 2020 financial results,
which include TD Ameritrade from October 6 forward, demonstrate our
ongoing success with clients and the benefits of our diversified
revenue model in the face of environmental headwinds. During March,
the Federal Reserve acted to support the economy by cutting the Fed
Funds rate from 1.75% to near zero and announcing sizeable asset
purchase programs. Mortgage refinancing activity subsequently
accelerated and our net interest margin was impacted by both
historically low rates and increased prepayments of mortgage-backed
securities held in our investment portfolio. Strong growth in
interest-earning assets via client asset inflows and allocation
decisions, as well as our TD Ameritrade acquisition, helped limit
the resulting year-over-year decline in net interest revenue to
just 6% to $6.1 billion. Growing balances in advisory solutions and
a robust rebound in equity markets led to an 8% increase in asset
management and administration fees to $3.5 billion. Record client
trading activity, and the addition of TD Ameritrade, led to an 88%
increase in trading revenue to $1.4 billion – even as we absorbed a
full-year impact of the commission reductions we implemented late
in 2019. With the TD Ameritrade acquisition, our fourth quarter
results included bank deposit account (BDA) fee revenue for the
first time, which totaled $355 million for the period from close to
year-end. BDA balances grew by 6% during that period and ended the
year at $165.9 billion. Overall, while both Schwab and TD
Ameritrade were performing well independently, we believe our first
reported results as a combined firm help support the case that
we’re creating an even more resilient business, producing fourth
quarter revenues that were up 60% relative to standalone Schwab on
a year-over-year basis.”
“On the expense front, our 2020 spending was in-line with
expectations given our acquisition activities, along with the need
to support our clients and employees as they navigated uniquely
challenging environmental stresses,” Mr. Crawford continued. “Total
GAAP expenses increased 26% to $7.4 billion for the year, which
encompassed $442 million in acquisition and integration-related
costs and $190 million in amortization of acquired intangibles.
Exclusive of these items (1), adjusted total expenses were up 16%
year-over-year, with approximately 13% attributable to including
our acquisitions for part of 2020. The challenges of the past
twelve months notwithstanding, our flexibility as an organization
enabled us to successfully harness efficiencies and leverage our
scale in order to produce a still-solid 36.8% pre-tax profit margin
(42.2% on an adjusted basis) and a 9% return on equity (15% ROTCE)
for the year (1).”
Mr. Crawford added, “Last year’s combination of stiff revenue
headwinds and remarkable growth provides a clear example of why we
remain focused on building a strong balance sheet capable of
supporting our business in any environment. Our consolidated
balance sheet grew 87% to end the year at $549 billion, reflecting
both our substantial organic growth and the absorption of TD
Ameritrade’s margin book and other interest-earning assets. We
ended the year with a preliminary consolidated Tier 1 Leverage
Ratio of 6.3%, which reflects the impact of that acquisition as
well as the issuance of an additional $2.5 billion of preferred
equity in early December.”
Mr. Crawford concluded, “2020 was an intensely challenging year
in which we stayed true to our heritage. Together, our expanded
team pushed through the business obstacles triggered by COVID-19 –
uncertainty, volatility, and complexity – to effectively balance
near-term profitability with driving strategic progress and helping
solidify our competitive positioning. While we cannot predict what
the future holds, we know that consistent growth is only made
possible by managing for the long-term and serving our clients with
clarity and focus – regardless of the circumstances.”
(1) Further details on non-GAAP financial measures and a
reconciliation of such measures to 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 The Charles Schwab
Corporation’s recently completed acquisition of TD Ameritrade, was
posted on October 6, 2020.
Winter Business Update
The company has scheduled a Winter Business Update for
institutional investors on Tuesday, February 2, 2021. 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.schwabevents.com/corporation.
Forward-Looking Statements
This press release contains forward-looking statements relating
to investments and acquisitions to improve the client experience,
expand products and services to meet client needs, diversify
revenues, and drive scale and efficiency; growth opportunities; the
integration of TD Ameritrade; growth in the client base, accounts,
and assets; building a strong balance sheet; and balancing
near-term profitability with ongoing investment to support current
and long-term growth. 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, in a timely and successful manner; the
ability to support client activity levels; the ability to
successfully implement integration strategies and plans; the risk
that expected revenue and expense synergies and other benefits from
recent acquisitions may not be fully realized or may take longer to
realize than expected; general market conditions, including equity
valuations, trading activity, and credit spreads; the company’s
ability to attract and retain clients and registered investment
advisors and grow those relationships and client assets; client use
of the company’s advisory solutions and other products and
services; capital and liquidity needs and management; client cash
allocations; client sensitivity to rates; the level of client
assets, including cash balances; the company’s ability to monetize
client assets; the company’s ability to manage expenses; 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; 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 29.6 million active brokerage
accounts, 2.1 million corporate retirement plan participants, 1.5
million banking accounts, and approximately $6.69 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 December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Net Revenues
Interest revenue
$
1,905
$
1,763
$
6,531
$
7,580
Interest expense
(96)
(168)
(418)
(1,064)
Net interest revenue
1,809
1,595
6,113
6,516
Asset management and administration fees
(1)
987
845
3,475
3,211
Trading revenue (2)
854
122
1,416
752
Bank deposit account fees
355
—
355
—
Other (2)
171
44
332
242
Total net revenues
4,176
2,606
11,691
10,721
Expenses Excluding Interest
Compensation and benefits
1,398
806
3,954
3,320
Professional services
269
186
843
702
Occupancy and equipment
254
151
703
559
Advertising and market development
123
90
326
307
Communications
127
66
353
253
Depreciation and amortization (3)
130
87
414
322
Amortization of acquired intangible assets
(3)
147
7
190
27
Regulatory fees and assessments
57
30
163
122
Other
195
71
445
261
Total expenses excluding interest
2,700
1,494
7,391
5,873
Income before taxes on income
1,476
1,112
4,300
4,848
Taxes on income
341
260
1,001
1,144
Net Income
1,135
852
3,299
3,704
Preferred stock dividends and other
85
51
256
178
Net Income Available to Common
Stockholders
$
1,050
$
801
$
3,043
$
3,526
Weighted-Average Common Shares
Outstanding:
Basic
1,848
1,284
1,429
1,311
Diluted
1,855
1,293
1,435
1,320
Earnings Per Common Shares Outstanding
(4):
Basic
$
.57
$
.62
$
2.13
$
2.69
Diluted
$
.57
$
.62
$
2.12
$
2.67
Note: The Consolidated Statements of Income include the results of
operations for TD Ameritrade beginning October 6, 2020, including
bank deposit account fee revenue, as described in Part I – Item 1 –
Note 17 of our Quarterly Report on Form 10-Q for the quarter ended
September 30, 2020.
(1)
Includes fee waivers of $68
million and $127 million for the three and twelve months ended
December 31, 2020, respectively.
(2)
Beginning in the first quarter of
2020, order flow revenue was reclassified from other revenue to
trading revenue. Prior periods have been reclassified to reflect
this change.
(3)
Beginning in the third quarter of
2020, amortization of acquired intangible assets was reclassified
from depreciation and amortization. Prior periods have been
reclassified to reflect this change.
(4)
For the three and twelve months
ended December 31, 2020, the Company had 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)
Q4-20 % change
2020
2019
vs.
vs.
Fourth
Third
Second
First
Fourth
(In millions, except per share amounts and
as noted)
Q4-19
Q3-20
Quarter
Quarter
Quarter
Quarter
Quarter
Net Revenues
Net interest revenue
13
%
35
%
$
1,809
$
1,343
$
1,389
$
1,572
$
1,595
Asset management and administration
fees
17
%
15
%
987
860
801
827
845
Trading revenue (1)
N/M
N/M
854
181
193
188
122
Bank deposit account fees
N/M
N/M
355
—
—
—
—
Other (1)
N/M
167
%
171
64
67
30
44
Total net revenues
60
%
71
%
4,176
2,448
2,450
2,617
2,606
Expenses Excluding Interest
Compensation and benefits
73
%
66
%
1,398
840
819
897
806
Professional services
45
%
39
%
269
194
198
182
186
Occupancy and equipment
68
%
64
%
254
155
152
142
151
Advertising and market development
37
%
86
%
123
66
70
67
90
Communications
92
%
74
%
127
73
78
75
66
Depreciation and amortization (2)
49
%
34
%
130
97
97
90
87
Amortization of acquired intangible assets
(2)
N/M
N/M
147
25
12
6
7
Regulatory fees and assessments
90
%
58
%
57
36
36
34
30
Other
175
%
167
%
195
73
100
77
71
Total expenses excluding interest
81
%
73
%
2,700
1,559
1,562
1,570
1,494
Income before taxes on income
33
%
66
%
1,476
889
888
1,047
1,112
Taxes on income
31
%
79
%
341
191
217
252
260
Net Income
33
%
63
%
$
1,135
$
698
$
671
$
795
$
852
Preferred stock dividends and other
67
%
2
%
85
83
50
38
51
Net Income Available to Common
Stockholders
31
%
71
%
$
1,050
$
615
$
621
$
757
$
801
Earnings per common share (3):
Basic
(8)
%
19
%
$
.57
$
.48
$
.48
$
.59
$
.62
Diluted
(8)
%
19
%
$
.57
$
.48
$
.48
$
.58
$
.62
Dividends declared per common share
6
%
—
$
.18
$
.18
$
.18
$
.18
$
.17
Weighted-average common shares
outstanding:
Basic
44
%
43
%
1,848
1,289
1,288
1,287
1,284
Diluted
43
%
43
%
1,855
1,294
1,294
1,294
1,293
Performance Measures
Pre-tax profit margin
35.3
%
36.3
%
36.2
%
40.0
%
42.7
%
Return on average common stockholders’
equity (annualized) (4)
11
%
10
%
10
%
14
%
17
%
Financial Condition (at quarter
end, in billions)
Cash and cash equivalents
38
%
47
%
$
40.3
$
27.5
$
33.6
$
68.5
$
29.3
Cash and investments segregated
146
%
70
%
50.4
29.6
33.2
34.3
20.5
Receivables from brokerage clients —
net
195
%
154
%
64.4
25.4
21.4
19.0
21.8
Available for sale securities (5)
N/M
11
%
337.4
303.8
281.2
221.2
61.4
Held to maturity securities (5)
(100)
%
—
—
—
—
—
134.7
Bank loans — net
31
%
7
%
23.8
22.3
20.9
19.5
18.2
Total assets
87
%
31
%
549.0
419.4
400.5
370.8
294.0
Bank deposits
63
%
12
%
358.0
320.7
301.6
277.5
220.1
Payables to brokerage clients
166
%
100
%
104.2
52.0
50.1
49.3
39.2
Long-term debt
84
%
74
%
13.6
7.8
8.5
8.5
7.4
Stockholders’ equity
159
%
79
%
56.1
31.3
30.8
26.3
21.7
Other
Full-time equivalent employees (at quarter
end, in thousands)
62
%
45
%
32.0
22.1
21.8
20.2
19.7
Capital expenditures — purchases of
equipment, office facilities, and property, net (in millions)
(4)
%
64
%
$
200
$
122
$
169
$
250
$
209
Expenses excluding interest as a
percentage of average client assets (annualized)
0.17
%
0.14
%
0.16
%
0.16
%
0.15
%
Clients’ Daily Average Trades
(DATs) (in thousands)
N/M
N/M
5,796
1,460
1,619
1,540
785
Number of Trading Days
—
(2)
%
63.0
64.0
63.0
62.0
63.0
Revenue Per Trade (6)
(5)
%
21
%
$
2.34
$
1.94
$
1.89
$
1.97
$
2.47
Note: The above table reflects the recognition of TD Ameritrade’s
assets acquired and liabilities assumed at provisional fair value
as of October 6, 2020. Results of operations and metrics are
inclusive of TD Ameritrade beginning October 6, 2020.
(1)
Beginning in the first quarter of 2020,
order flow revenue was reclassified from other revenue to trading
revenue. Prior periods have been reclassified to reflect this
change.
(2)
Beginning in the third quarter of 2020,
amortization of acquired intangible assets was reclassified from
depreciation and amortization. Prior periods have been reclassified
to reflect this change.
(3)
During the fourth quarter of 2020, the
Company had 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.
(4)
Return on average common stockholders’
equity is calculated using net income available to common
stockholders divided by average common stockholders’ equity.
(5)
On January 1, 2020, the Company
transferred all of its investment securities designated as held to
maturity to the available for sale category, as described in Part I
– Item 1 – Note 5 of our Quarterly Report on Form 10-Q for the
quarter ended September 30, 2020.
(6)
Revenue per trade is calculated as trading
revenue divided by DATs multiplied by the number of trading
days.
N/M Not meaningful.
THE CHARLES SCHWAB
CORPORATION
Net Interest Revenue
Information
(In millions, except ratios or as
noted)
(Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Average Balance
Interest Revenue/ Expense
Average Yield/ Rate
Average Balance
Interest Revenue/ Expense
Average Yield/ Rate
Average Balance
Interest Revenue/ Expense
Average Yield/ Rate
Average Balance
Interest Revenue/ Expense
Average Yield/ Rate
Interest-earning assets
Cash and cash equivalents
$
35,008
$
8
0.09
%
$
20,563
$
86
1.64
%
$
39,052
$
120
0.30
%
$
23,512
$
518
2.17
%
Cash and investments segregated
45,828
13
0.11
%
18,434
81
1.71
%
34,100
141
0.41
%
15,694
345
2.17
%
Receivables from brokerage clients
53,719
444
3.23
%
19,241
185
3.77
%
28,058
848
2.97
%
19,270
821
4.20
%
Available for sale securities (1,2)
305,231
1,103
1.44
%
56,528
357
2.51
%
253,555
4,537
1.78
%
58,181
1,560
2.67
%
Held to maturity securities (2)
—
—
—
136,717
870
2.53
%
—
—
—
134,708
3,591
2.65
%
Bank loans
22,971
134
2.34
%
17,457
141
3.22
%
20,932
545
2.60
%
16,832
584
3.47
%
Total interest-earning assets
462,757
1,702
1.46
%
268,940
1,720
2.53
%
375,697
6,191
1.64
%
268,197
7,419
2.75
%
Securities lending revenue (3)
201
41
334
147
Other interest revenue (3)
2
2
6
14
Total interest-earning assets (4)
$
462,757
$
1,905
1.63
%
$
268,940
$
1,763
2.59
%
$
375,697
$
6,531
1.73
%
$
268,197
$
7,580
2.80
%
Funding sources
Bank deposits
$
336,912
$
12
0.01
%
$
211,172
$
84
0.16
%
$
291,206
$
93
0.03
%
$
212,605
$
700
0.33
%
Payables to brokerage clients
77,160
2
0.01
%
27,051
11
0.16
%
46,347
12
0.02
%
24,353
79
0.33
%
Short-term borrowings (5)
306
—
0.19
%
11
—
1.72
%
89
—
0.20
%
17
—
2.36
%
Long-term debt
11,903
77
2.59
%
7,428
66
3.54
%
8,992
289
3.22
%
7,199
258
3.58
%
Total interest-bearing liabilities
426,281
91
0.09
%
245,662
161
0.26
%
346,634
394
0.11
%
244,174
1,037
0.42
%
Non-interest-bearing funding sources
(4)
36,476
23,278
29,063
24,023
Securities lending expense (3)
7
9
33
38
Other interest expense (3)
(2)
(2)
(9)
(11)
Total funding sources (4)
$
462,757
$
96
0.08
%
$
268,940
$
168
0.25
%
$
375,697
$
418
0.11
%
$
268,197
$
1,064
0.39
%
Net interest revenue
$
1,809
1.55
%
$
1,595
2.34
%
$
6,113
1.62
%
$
6,516
2.41
%
Note: The above table reflects the acquisition of TD Ameritrade,
effective October 6, 2020.
(1)
Amounts have been calculated based on
amortized cost.
(2)
On January 1, 2020, the Company
transferred all of its investment securities designated as held to
maturity to the available for sale category, as described in Part I
– Item 1 – Note 5 of our Quarterly Report on Form 10-Q for the
quarter ended September 30, 2020.
(3)
Beginning in the fourth quarter of 2020,
securities lending revenue has been reclassified from
broker-related receivables and other revenue. Securities lending
expense has been reclassified from other expense. Prior period
amounts have been reclassified to reflect this change.
(4)
Beginning in the fourth quarter of 2020,
broker-related receivables were removed from total interest earning
assets and netted against non-interest-bearing funding sources,
resulting in an immaterial reduction to total interest-earning
assets and total funding sources. Prior period amounts have been
reclassified to reflect this change.
(5)
Interest revenue or expense was less than
$500 thousand in the period or periods presented.
THE CHARLES SCHWAB
CORPORATION
Asset Management and
Administration Fees Information
(In millions, except ratios or as
noted)
(Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Average Client Assets
Revenue
Average Fee
Average Client Assets
Revenue
Average Fee
Average Client Assets
Revenue
Average Fee
Average Client Assets
Revenue
Average Fee
Schwab money market funds before fee
waivers
$
183,846
$
136
0.29
%
$
196,074
$
147
0.30
%
$
200,119
$
605
0.30
%
$
173,558
$
525
0.30
%
Fee waivers
(68)
—
(127)
—
Schwab money market funds
183,846
68
0.15
%
196,074
147
0.30
%
200,119
478
0.24
%
173,558
525
0.30
%
Schwab equity and bond funds, ETFs, and
collective trust funds (CTFs)
334,113
81
0.10
%
288,750
79
0.11
%
301,598
300
0.10
%
267,213
298
0.11
%
Mutual Fund OneSource® and other non-
transaction fee funds
208,397
163
0.31
%
193,665
154
0.32
%
192,464
599
0.31
%
191,552
606
0.32
%
Other third-party mutual funds and ETFs
(1,2)
763,494
158
0.08
%
462,466
80
0.07
%
525,379
393
0.07
%
478,037
318
0.07
%
Total mutual funds, ETFs, and CTFs (3)
$
1,489,850
470
0.13
%
$
1,140,955
460
0.16
%
$
1,219,560
1,770
0.15
%
$
1,110,360
1,747
0.16
%
Advice solutions (3)
Fee-based
$
392,148
444
0.45
%
$
262,516
320
0.48
%
$
306,010
1,443
0.47
%
$
246,888
1,198
0.49
%
Non-fee-based
78,332
—
—
73,356
—
—
73,161
—
—
70,191
—
—
Total advice solutions
$
470,480
444
0.38
%
$
335,872
320
0.38
%
$
379,171
1,443
0.38
%
$
317,079
1,198
0.38
%
Other balance-based fees (4)
520,830
58
0.04
%
443,814
54
0.05
%
451,350
208
0.05
%
432,613
216
0.05
%
Other (5)
15
11
54
50
Total asset management and
administration fees
$
987
$
845
$
3,475
$
3,211
(1)
Beginning in the fourth quarter of 2020
includes TD Ameritrade money market funds.
(2)
Beginning in the fourth quarter of 2019,
Schwab ETF OneSourceTM was discontinued as a result of the
elimination of online trading commissions for U.S. and
Canadian-listed ETFs.
(3)
Advice solutions include managed
portfolios, specialized strategies, and customized investment
advice such as Schwab Private ClientTM, Schwab Managed
PortfoliosTM, Managed Account Select®, Schwab Advisor Network®,
Windhaven® Strategies, ThomasPartners® Strategies, Schwab Index
Advantage® advised retirement plan balances, Schwab Intelligent
Portfolios®, Institutional Intelligent Portfolios®, Schwab
Intelligent Portfolios PremiumTM, TD Ameritrade AdvisorDirect®,
Essential Portfolios, Selective Portfolios, and Personalized
Portfolios; as well as legacy non-fee advice solutions including
Schwab Advisor Source and certain retirement plan balances. Average
client assets for advice solutions may also include the asset
balances contained in the mutual fund and/or ETF categories listed
above. For the total end of period view, please see the Monthly
Activity Report.
(4)
Includes various asset-related fees, such
as trust fees, 401(k) recordkeeping fees, and mutual fund clearing
fees and other service fees.
(5)
Includes miscellaneous service and
transaction fees relating to mutual funds and ETFs that are not
balance-based.
THE CHARLES SCHWAB
CORPORATION
Growth in Client Assets and
Accounts
(Unaudited)
Q4-20 %
Change
2020
2019
vs.
vs.
Fourth
Third
Second
First
Fourth
(In billions, at quarter end, except as
noted)
Q4-19
Q3-20
Quarter
Quarter
Quarter
Quarter
Quarter
Assets in client accounts
Schwab One®, certain cash equivalents and
bank deposits
79
%
24
%
$
458.4
$
370.3
$
349.2
$
324.4
$
256.7
Bank deposit account balances
N/M
N/M
165.9
—
—
—
—
Proprietary mutual funds (Schwab Funds®
and Laudus Funds®) and CTFs
Money market funds (1)
(12)
%
(7)
%
176.1
190.3
211.6
203.7
200.8
Equity and bond funds and CTFs (2)
17
%
14
%
142.9
125.5
117.0
99.1
122.5
Total proprietary mutual funds and
CTFs
(1)
%
1
%
319.0
315.8
328.6
302.8
323.3
Mutual Fund Marketplace® (3)
Mutual Fund OneSource® and other
non-transaction fee funds
11
%
10
%
223.9
203.6
193.0
161.6
202.1
Mutual fund clearing services
16
%
11
%
252.9
228.4
217.3
180.8
217.4
Other third-party mutual funds (4)
58
%
54
%
1,304.6
848.1
796.5
676.2
824.5
Total Mutual Fund Marketplace
43
%
39
%
1,781.4
1,280.1
1,206.8
1,018.6
1,244.0
Total mutual fund assets
34
%
32
%
2,100.4
1,595.9
1,535.4
1,321.4
1,567.3
Exchange-traded funds (ETFs)
Proprietary ETFs (2)
21
%
18
%
198.8
168.9
156.3
136.5
163.8
Other third-party ETFs
107
%
85
%
947.3
512.6
468.0
382.5
457.0
Total ETF assets
85
%
68
%
1,146.1
681.5
624.3
519.0
620.8
Equity and other securities
95
%
72
%
2,504.7
1,453.2
1,305.8
1,035.5
1,286.4
Fixed income securities
15
%
19
%
377.1
318.0
314.8
313.8
327.1
Margin loans outstanding
N/M
158
%
(60.9)
(23.6)
(19.4)
(17.2)
(19.5)
Total client assets
66
%
52
%
$
6,691.7
$
4,395.3
$
4,110.1
$
3,496.9
$
4,038.8
Client assets by business
Investor Services
72
%
54
%
$
3,667.9
$
2,377.7
$
2,223.5
$
1,846.8
$
2,131.0
Advisor Services
58
%
50
%
3,023.8
2,017.6
1,886.6
1,650.1
1,907.8
Total client assets
66
%
52
%
$
6,691.7
$
4,395.3
$
4,110.1
$
3,496.9
$
4,038.8
Net growth in assets in client
accounts (for the quarter ended)
Net new assets by business
Investor Services (5)
N/M
N/M
$
939.2
$
18.9
$
113.0
$
35.3
$
43.1
Advisor Services (6)
N/M
N/M
751.5
32.3
24.4
37.9
34.2
Total net new assets
N/M
N/M
$
1,690.7
$
51.2
$
137.4
$
73.2
$
77.3
Net market gains (losses)
N/M
N/M
605.7
234.0
475.8
(615.1)
193.1
Net growth (decline)
N/M
N/M
$
2,296.4
$
285.2
$
613.2
$
(541.9)
$
270.4
New brokerage accounts (in
thousands, for the quarter ended) (7)
N/M
N/M
15,774
592
1,652
609
433
Client accounts (in thousands)
Active brokerage accounts
140
%
106
%
29,629
14,393
14,107
12,736
12,333
Banking accounts
8
%
1
%
1,499
1,486
1,463
1,426
1,390
Corporate retirement plan participants
18
%
19
%
2,054
1,722
1,716
1,721
1,748
(1)
Total client assets in purchased money
market funds are located at:
https://www.aboutschwab.com/investor-relations.
(2)
Includes balances held on and off the
Schwab platform. As of December 31, 2020, off-platform equity and
bond funds, CTFs, and ETFs were $16.6 billion, $5.6 billion, and
$59.3 billion, respectively.
(3)
Excludes all proprietary mutual funds and
ETFs.
(4)
Fourth quarter of 2020 includes
third-party money funds of $19.7 billion related to the acquisition
of TD Ameritrade.
(5)
Fourth quarter of 2020 includes inflows of
$890.7 billion related to the acquisition of TD Ameritrade. Second
quarter of 2020 includes inflows of $79.9 billion related to the
acquisition of the assets of USAA’s Investment Management Company
and $10.9 billion from a mutual fund clearing services client.
Fourth quarter of 2019 includes an inflow of $11.1 billion from a
mutual fund clearing services client.
(6)
Fourth quarter of 2020 includes inflows of
$680.6 billion related to the acquisition of TD Ameritrade. Third
quarter of 2020 includes an inflow of $8.5 billion related to the
acquisition of Wasmer, Schroeder & Company, LLC.
(7)
Fourth quarter of 2020 includes 14.5
million new brokerage accounts related to the acquisition of TD
Ameritrade. Second quarter of 2020 includes 1.1 million new
brokerage accounts related to the acquisition of the assets of
USAA’s Investment Management Company.
N/M Not meaningful.
The Charles Schwab Corporation
Monthly Activity Report For December 2020
2019
2020
Change
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Mo.
Yr.
Market Indices (at month end)
Dow Jones Industrial Average
28,538
28,256
25,409
21,917
24,346
25,383
25,813
26,428
28,430
27,782
26,502
29,639
30,606
3
%
7
%
Nasdaq Composite
8,973
9,151
8,567
7,700
8,890
9,490
10,059
10,745
11,775
11,168
10,912
12,199
12,888
6
%
44
%
Standard & Poor’s 500
3,231
3,226
2,954
2,585
2,912
3,044
3,100
3,271
3,500
3,363
3,270
3,622
3,756
4
%
16
%
Client Assets (in billions of
dollars)
Beginning Client Assets
3,942.2
4,038.8
4,051.6
3,862.8
3,496.9
3,778.3
4,009.0
4,110.1
4,278.0
4,489.7
4,395.3
5,878.5
6,421.0
Net New Assets (1)
30.1
20.9
24.4
27.9
15.3
97.5
24.6
11.2
20.0
20.0
1,596.9
32.1
61.7
92
%
105
%
Net Market Gains (Losses)
66.5
(8.1)
(213.2)
(393.8)
266.1
133.2
76.5
156.7
191.7
(114.4)
(113.7)
510.4
209.0
Total Client Assets (at month end)
4,038.8
4,051.6
3,862.8
3,496.9
3,778.3
4,009.0
4,110.1
4,278.0
4,489.7
4,395.3
5,878.5
6,421.0
6,691.7
4
%
66
%
Core Net New Assets (2)
30.1
20.9
24.4
27.9
15.3
17.6
13.7
2.7
20.0
20.0
25.6
32.1
61.7
92
%
105
%
Receiving Ongoing Advisory Services (at
month end)(3)
Investor Services
337.1
336.8
323.2
291.5
309.9
339.8
345.2
355.6
366.8
361.2
425.3
457.1
471.8
3
%
40
%
Advisor Services (4)
1,769.7
1,773.2
1,694.0
1,531.3
1,647.9
1,711.7
1,747.5
1,818.5
1,900.5
1,870.1
2,505.5
2,715.7
2,828.3
4
%
60
%
Client Accounts (at month end, in
thousands)
Active Brokerage Accounts
12,333
12,431
12,521
12,736
12,866
14,007
14,107
14,220
14,311
14,393
29,013
29,202
29,629
1
%
140
%
Banking Accounts
1,390
1,403
1,411
1,426
1,439
1,448
1,463
1,480
1,493
1,486
1,496
1,504
1,499
—
8
%
Corporate Retirement Plan Participants
1,748
1,732
1,726
1,721
1,696
1,714
1,716
1,712
1,715
1,722
2,072
2,045
2,054
—
18
%
Client Activity
New Brokerage Accounts (in thousands)
(5)
164
167
159
283
201
1,250
201
206
202
184
14,718
430
626
46
%
N/M
Client Cash as a Percentage of Client
Assets (6)
11.3
%
11.3
%
12.0
%
15.1
%
14.3
%
14.0
%
13.6
%
13.0
%
12.5
%
12.8
%
13.4
%
12.4
%
12.3
%
(10) bp
100 bp
Derivative Trades as a Percentage of Total
Trades
10.7
%
12.0
%
11.5
%
7.0
%
10.2
%
12.2
%
10.6
%
13.1
%
13.8
%
14.5
%
20.5
%
19.4
%
18.9
%
(50) bp
820 bp
Mutual Fund and Exchange-Traded
Fund
Net Buys (Sells) (7,8) (in millions
of dollars)
Large Capitalization Stock
991
845
(178)
984
(693)
(768)
(1,254)
(2,536)
(1,422)
(1,360)
(935)
4,454
3,693
Small / Mid Capitalization Stock
201
(314)
(531)
(954)
151
(401)
(1,063)
(1,476)
(441)
(497)
(753)
2,431
2,293
International
993
1,360
132
(2,116)
(2,207)
(1,953)
(1,580)
(773)
230
370
168
2,110
4,112
Specialized
455
762
397
333
2,059
1,512
1,020
1,505
906
115
215
1,985
3,777
Hybrid
(96)
615
(257)
(4,790)
(860)
(518)
(97)
(769)
(124)
(12)
(553)
(402)
359
Taxable Bond
4,710
5,714
3,830
(23,142)
1,642
5,469
9,215
7,314
7,680
5,734
5,904
4,825
10,004
Tax-Free Bond
1,255
1,481
1,066
(5,229)
(242)
805
1,710
1,297
1,648
1,123
861
1,131
2,165
Net Buy (Sell) Activity (in
millions of dollars)
Mutual Funds (7)
1,097
2,684
(565)
(34,382)
(3,863)
(564)
1,768
(147)
2,568
757
(2,260)
2,832
6,336
Exchange-Traded Funds (8)
7,412
7,779
5,024
(532)
3,713
4,710
6,183
4,709
5,909
4,716
7,167
13,702
20,067
Money Market Funds
1,515
1,911
1,312
(1,233)
8,465
4,833
(5,673)
(9,039)
(5,614)
(6,627)
(4,021)
(5,908)
(7,332)
Selected Average Balances (in
millions of dollars)
Average Interest-Earning Assets (9,10)
274,911
279,437
278,966
317,850
353,018
361,814
373,986
379,521
384,690
392,784
442,119
466,677
482,394
3
%
75
%
Average Bank Deposit Account Balances
(10,11)
—
—
—
—
—
—
—
—
—
—
132,030
162,315
163,463
1
%
N/M
(1)
October 2020 includes an inflow of $1.6
trillion related to the acquisition of TD Ameritrade. July 2020
includes an inflow of $8.5 billion related to the acquisition of
Wasmer, Schroeder & Company, LLC. June 2020 includes an inflow
of $10.9 billion from a mutual fund clearing services client. May
2020 includes an inflow of $79.9 billion related to the acquisition
of the assets of USAA’s Investment Management Company.
(2)
Net new assets before significant one-time
inflows or outflows, such as acquisitions/divestitures or
extraordinary flows (generally greater than $10 billion) relating
to a specific client. These flows may span multiple reporting
periods.
(3)
Beginning in December 2020, AdvisorDirect®
assets are presented as Investor Services. In December 2020, $46.5
billion and $50.4 billion for October and November, respectively,
were reclassified from Advisor Services to Investor Services.
(4)
Excludes Retirement Business Services.
(5)
October 2020 includes 14.5 million new
brokerage accounts related to the acquisition of TD Ameritrade. May
2020 includes 1.1 million new brokerage accounts related to the
acquisition of the assets of USAA’s Investment Management
Company.
(6)
Schwab One®, certain cash equivalents,
bank deposits, and money market fund balances as a percentage of
total client assets.
(7)
Represents the principal value of client
mutual fund transactions handled by Schwab, including transactions
in proprietary funds. Includes institutional funds available only
to Investment Managers. Excludes money market fund
transactions.
(8)
Represents the principal value of client
ETF transactions handled by Schwab, including transactions in
proprietary ETFs.
(9)
Represents average total interest-earning
assets on the company’s balance sheet.
(10)
October 2020 averages reflect a full month
of Schwab balances and 26 days of TD Ameritrade balances following
the acquisition closing on October 6, 2020. Calculating the
consolidated daily average from the closing date onwards would
result in Average Interest Earning Assets and Average Bank Deposit
Account Balances of $450,004 million and $157,414 million,
respectively.
(11)
Represents average TD Ameritrade clients’
uninvested cash sweep account balances held in deposit accounts at
third-party financial institutions.
N/M Not meaningful.
THE CHARLES SCHWAB CORPORATION Non-GAAP
Financial Measures (In millions, except ratios and per share
amounts) (Unaudited)
In addition to disclosing financial results in accordance with
generally accepted accounting principles in the U.S. (GAAP),
Schwab’s fourth quarter earnings release contains references to the
non-GAAP financial measures described below. We believe these
non-GAAP financial measures provide useful supplemental information
about the financial performance of the Company, and facilitate
meaningful comparison of Schwab’s results in the current period to
both historic and future results. These non-GAAP measures should
not be considered a substitute for, or superior to, financial
measures calculated in accordance with GAAP, and may not be
comparable to non-GAAP financial measures presented by other
companies.
Schwab’s use of non-GAAP measures is reflective of certain
adjustments made to GAAP financial measures as described below.
Non-GAAP Adjustment or
Measure
Definition
Usefulness to Management and
Investors
Acquisition and integration-related costs
and amortization of acquired intangible assets
Schwab adjusts certain GAAP financial
measures to exclude the impact of acquisition and
integration-related costs incurred as a result of the Company’s
business acquisitions, amortization of acquired intangible assets,
and, where applicable, the income tax effect of these expenses.
Adjustments made to exclude amortization of acquired intangible
assets are reflective of all acquired intangible assets, which were
recorded as part of purchase accounting. These acquired intangible
assets contribute to the Company’s revenue generation. Amortization
of acquired intangible assets will continue in future periods over
their remaining useful lives.
We exclude acquisition and
integration-related costs and amortization of acquired intangible
assets for the purpose of calculating certain non-GAAP measures
because we believe doing so provides additional transparency of
Schwab’s ongoing operations, and may be useful in both evaluating
the operating performance of the business and facilitating
comparison of results with prior and future periods. Acquisition
and integration-related costs fluctuate based on the timing of
acquisitions and integration activities, thereby limiting
comparability of results among periods, and are not representative
of the costs of running the Company’s on-going business.
Amortization of acquired intangible assets is excluded because
management does not believe it is indicative of the Company’s
underlying operating performance.
Return on tangible common equity
Return on tangible common equity
represents annualized adjusted net income available to common
stockholders as a percentage of average tangible common equity.
Tangible common equity represents common equity less goodwill,
acquired intangible assets — net, and related deferred tax
liabilities.
Acquisitions typically result in the
recognition of significant amounts of goodwill and acquired
intangible assets. We believe return on tangible common equity may
be useful to investors as a supplemental measure to facilitate
assessing capital efficiency and returns relative to the
composition of Schwab’s balance sheet.
The tables below present reconciliations of GAAP measures to
non-GAAP measures and include the results of operations for TD
Ameritrade beginning October 6, 2020.
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Total Expenses Excluding
Interest
Net Income
Total Expenses Excluding
Interest
Net Income
Total Expenses Excluding
Interest
Net Income
Total Expenses Excluding
Interest
Net Income
Total expenses excluding interest
(GAAP), Net income (GAAP)
$
2,700
$
1,135
$
1,494
$
852
$
7,391
$
3,299
$
5,873
$
3,704
Acquisition and integration-related costs
(1)
(282)
282
(18)
18
(442)
442
(26)
26
Amortization of acquired intangible
assets
(147)
147
(7)
7
(190)
190
(27)
27
Income tax effects (2)
N/A
(105)
N/A
(6)
N/A
(154)
N/A
(13)
Adjusted total expenses (non-GAAP),
Adjusted net income (non-GAAP)
$
2,271
$
1,459
$
1,469
$
871
$
6,759
$
3,777
$
5,820
$
3,744
(1)
Acquisition and integration-related costs
for the three months ended December 31, 2020 primarily consist of
$193 million of compensation and benefits, $66 million of
professional services, and $10 million of other expense.
Acquisition and integration-related costs for the twelve months
ended December 31, 2020 primarily consist of $235 million of
compensation and benefits, $158 million of professional services,
and $30 million of other expense.
(2)
The income tax effect of the non-GAAP
adjustments is determined using an effective tax rate reflecting
the exclusion of non-deductible acquisition costs and is used to
present the acquisition and integration-related costs and
amortization of acquired intangible assets on an after-tax
basis.
N/A Not applicable.
THE CHARLES SCHWAB
CORPORATION
Non-GAAP Financial
Measures
(In millions, except ratios and
per share amounts)
(Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Amount
% of Total Net Revenues
Amount
% of Total Net Revenues
Amount
% of Total Net Revenues
Amount
% of Total Net Revenues
Income before taxes on income (GAAP),
Pre-tax profit margin (GAAP)
$
1,476
35.3
%
$
1,112
42.7
%
$
4,300
36.8
%
$
4,848
45.2
%
Acquisition and integration-related
costs
282
6.8
%
18
0.7
%
442
3.8
%
26
0.2
%
Amortization of acquired intangible
assets
147
3.5
%
7
0.2
%
190
1.6
%
27
0.3
%
Adjusted income before taxes on income
(non-GAAP), Adjusted pre-tax profit margin
(non-GAAP)
$
1,905
45.6
%
$
1,137
43.6
%
$
4,932
42.2
%
$
4,901
45.7
%
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Amount
Diluted EPS
Amount
Diluted EPS
Amount
Diluted EPS
Amount
Diluted EPS
Net income available to common
stockholders (GAAP), Earnings per common share — diluted
(GAAP)
$
1,050
$
.57
$
801
$
.62
$
3,043
$
2.12
$
3,526
$
2.67
Acquisition and integration-related
costs
282
.15
18
.01
442
.31
26
.02
Amortization of acquired intangible
assets
147
.08
7
.01
190
.13
27
.02
Income tax effects
(105)
(.06)
(6)
(.01)
(154)
(.11)
(13)
(.01)
Adjusted net income available to common
stockholders (non-GAAP), Adjusted diluted EPS
(non-GAAP)
$
1,374
$
.74
$
820
$
.63
$
3,521
$
2.45
$
3,566
$
2.70
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Return on average common stockholders'
equity (GAAP)
11
%
17
%
9
%
19
%
Average common stockholders' equity
$
37,198
$
18,757
$
33,640
$
18,415
Less: Average goodwill
(6,845)
(1,227)
(6,590)
(1,227)
Less: Average acquired intangible assets —
net
(5,624)
(130)
(5,059)
(140)
Plus: Average deferred tax liabilities
related to goodwill and acquired intangible assets — net
1,005
67
1,005
67
Average tangible common equity
$
25,734
$
17,467
$
22,996
$
17,115
Adjusted net income available to common
stockholders (1)
$
1,374
$
820
$
3,521
$
3,566
Return on tangible common equity
(non-GAAP)
21
%
19
%
15
%
21
%
(1)
See table above for the reconciliation of
net income available to common stockholders to adjusted net income
available to common stockholders (non-GAAP).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210119005104/en/
MEDIA: Mayura Hooper Charles Schwab Phone:
415-667-1525
INVESTORS/ANALYSTS: Jeff Edwards Charles Schwab Phone:
415-667-1524
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