The Charles Schwab Corporation Reports Monthly Activity Highlights, Net New Assets Total $10.3 Billion
September 15 2005 - 9:45AM
PR Newswire (US)
SAN FRANCISCO, Sept. 15 /PRNewswire-FirstCall/ -- The Charles
Schwab Corporation released its Monthly Market Activity Report
today. Company highlights for the month of August 2005 include: --
Net new assets brought to the Company by new and current clients in
August 2005 totaled $10.3 billion, including inflows of $3.0
billion at U.S. Trust relating to Special Fiduciary business
clients. -- Total client assets were $1.150 trillion as of
month-end August, up 17% from August 2004 and up 1% from July 2005.
In comparison, the Schwab 1000 Index(R) was up 12% from August 2004
and down 1% from July 2005. -- Client daily average trades, which
include daily average revenue trades (DART), Schwab
Institutional(R) asset-based trades and Schwab Private Client(TM)
asset-based trades, were 215.3 thousand in August 2005, up 61% from
August 2004 and up 1% from July 2005. CFO Christopher Dodds
commented, "Our client fundamentals remain very encouraging --
August marked our third consecutive month of net new assets in
excess of $6 billion, daily average trades for the first two months
of the traditionally slower summer quarter were up 9% from the
second quarter, and client trading activity thus far in September
has been slightly higher than August levels. Given these results
and our continuing focus on expense discipline, we believe the
Company's third quarter earnings will be 5-10% higher than our
second quarter results, which would represent the second highest
quarterly earnings in Schwab's history." "In light of this
financial strength and our confidence in our strategy, we've
decided to pursue two growth investments to enhance the Company's
business momentum -- the elimination of account service and order
handling fees, which we announced today, and a new national
advertising campaign," Mr. Dodds added. "The campaign rollout
follows successful testing in three pilot markets over the past
five months. We estimate that these investments will reduce fourth
quarter earnings by approximately $40 million pre-tax, or $0.02 in
earnings per share." This press release contains forward looking
statements that reflect management's current expectations. These
statements relate to third quarter 2005 earnings, as well as the
impact of certain investments on fourth quarter earnings.
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, a significant
downturn in the securities markets, trading volumes and investor
confidence over a short period of time; material systems
interruptions, errors or downtime; a significant discrepancy
between estimated and actual revenues associated with the Company's
account service and order handling fees; and material changes in
the extent and/or duration of the Company's planned advertising
campaign. The Charles Schwab Corporation (NYSE / Nasdaq: SCH),
through its operating subsidiaries, provides securities brokerage
and financial services to individual investors and the independent
investment advisors who work with them. With over 7 million
individual investor accounts and more than $1 trillion in client
assets, The Charles Schwab Corporation is one of the nation's
largest financial services firms. Its subsidiary Charles Schwab
& Co., Inc. (member SIPC) provides a complete range of
investment services and products, including an extensive selection
of mutual funds; financial planning and investment advice;
retirement plans; referrals to independent fee-based investment
advisors; and custodial, operational and trading support for
independent fee-based investment advisors. Its subsidiary Charles
Schwab Bank (member FDIC) provides banking and mortgage services
and products. The corporation's other operating subsidiaries
include U.S. Trust Corporation (member FDIC) and CyberTrader(R),
Inc. (member SIPC). These companies' Web sites can be reached at
http://www.schwab.com/, http://www.schwabbank.com/,
http://www.ustrust.com/, and http://www.cybertrader.com/.
DATASOURCE: Charles Schwab CONTACT: media, Glen Mathison,
+1-415-636-5448, or Investors/Analysts, Rich Fowler,
+1-415-636-9869, both of Charles Schwab Web site:
http://www.schwab.com/
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