WESTLAKE, Texas, October 15, 2024 – The Charles Schwab Corporation reported net income for the third quarter totaling $1.4 billion, or $.71 diluted earnings per common share. Excluding $153 million of pre-tax transaction-related costs, adjusted (1) net income and diluted common earnings per share equaled $1.5 billion and $.77, respectively.

•Healthy net asset gathering and equity market resilience resulted in record total client assets of $9.92 trillion

•Active brokerage accounts reached 36.0 million, up 4% versus September 2023

•Core net new assets equaled $95.3 billion, bringing the year-to-date total to $252.1 billion – a 10% increase versus 2023 year-to-date

•Assets receiving ongoing advisory services are up 6% sequentially and up 26% versus September 2023, including record net flows into Schwab Wealth AdvisoryTM

•Margin balances grew sequentially by 2% to $73.0 billion, up 17% from year-end 2023

•Trading activity increased relative to the prior quarter as client engagement remained strong

•Schwab ranked #1 by J.D. Power in Participant Satisfaction with Retirement Plan Digital Experiences (3)

•Charles Schwab Bank rated #1 in Investor’s Business Daily Most Trusted Financial Companies survey (4)

•Net revenues grew on both a year-over-year and sequential basis, up 5% and 3%, respectively

•Sequential net interest margin expanded modestly to 2.08%

•Client transactional sweep cash balances finished September at $384.0 billion, a sequential increase of $9.2 billion

•Bank Supplemental Funding (2) declined sequentially by $8.9 billion to $64.8 billion at September month-end

•Asset management and administration fees achieved a new quarterly record of $1.5 billion

•Trading revenue increased 4% versus 3Q23 as a result of higher volumes and changes in trading mix

•GAAP expenses for the quarter declined 7% versus 3Q23

•Third quarter acquisition and integration-related costs, amortization of acquired intangibles, and restructuring costs equaled $153 million, or a decline of $367 million versus 3Q23; exclusive of these items, adjusted total expenses (1) increased by 6%

•Capital ratios across the firm continue to build – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) reaching 9.7% and 6.7%, respectively

(1) Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-12 of this release.

(2) Bank Supplemental Funding includes repurchase agreements at the banks, Schwab Bank Certificates of Deposit (CDs), and Federal Home Loan Bank balances.

(3) Charles Schwab received the highest score in the J.D. Power 2021-2022, and 2024 U.S. Retirement Plan Digital Satisfaction Studies, which measures group retirement plan participant satisfaction with plan provider digital experiences. Visit https://www.jdpower.com/business/awards for more details. Use of study results in promotional materials is subject to a license fee.

(4) The Investor’s Business Daily Most Trusted Bank accolade/recognition was published by Investor’s Business Daily on September 20, 2024, and is licensed for a 15-month timeframe. The criteria, evaluation, and ranking were determined by Investor’s Business Daily in conjunction with its research partner, TechnoMetrica Market Intelligence, and were based on consumer surveys conducted May-July 2024. (https://www.investors.com/news/most-trusted-financial-companies-top-30-list-2024/) Schwab paid a licensing fee to York Graphic Services, LLC. for uses of the award and logos through January 4, 2026.

The company will host its Fall Business Update for institutional investors this morning from 7:30 a.m. - 8:30 a.m. CT, 8:30 a.m. - 9:30 a.m. ET.

Registration for this Update webcast is accessible at https://www.aboutschwab.com/schwabevents.

This press release contains forward-looking statements relating to asset gathering and the company’s momentum with clients; client interest in wealth solutions; the company’s diversified operating model; and capital ratios. 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 are described in the company’s most recent reports on Form 10-K and Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company’s website (https://www.aboutschwab.com/financial-reports) and on the Securities and Exchange Commission’s website (https://www.sec.gov). The company makes no commitment to update any forward-looking statements.

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 36.0 million active brokerage accounts, 5.4 million workplace plan participant accounts, 2.0 million banking accounts, and $9.92 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 subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its 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.

Mayura Hooper, 415-667-1525

public.relations@schwab.com

INVESTORS/ANALYSTS

Jeff Edwards, 817-854-6177

investor.relations@schwab.com

THE CHARLES SCHWAB CORPORATION

(In millions, except per share amounts)

(Unaudited)

(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.

        

(1) Fourth quarter of 2023 includes $16 million in restructuring costs. Third quarter of 2023 includes $276 million in restructuring costs.

(2) Fourth quarter of 2023 includes $181 million in restructuring costs.

(3) 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.

(4) Return on average common stockholders’ equity is calculated using net income available to common stockholders divided by average common stockholders’ equity.

(5) Revenue per trade is calculated as trading revenue divided by the product of DATs multiplied by the number of trading days.

(Unaudited)

(1) Amounts have been calculated based on amortized cost.

(Unaudited)

(1) Advice solutions include managed portfolios, specialized strategies, and customized investment advice such as Schwab Wealth AdvisoryTM, 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 Premium®, 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.

(2) Includes various asset-related fees, such as trust fees, 401(k) recordkeeping fees, and mutual fund clearing fees and other service fees.

(3) Includes miscellaneous service and transaction fees relating to mutual funds and ETFs that are not balance-based.

(Unaudited)

(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 September 30, 2024, off-platform equity and bond funds, CTFs, and ETFs were $34.4 billion, $4.1 billion, and $129.3 billion, respectively.

(3) Excludes all proprietary mutual funds and ETFs.

(4) Third quarter of 2024 includes net outflows of $4.4 billion from off-platform Schwab Bank Retail CDs and an outflow of $0.1 billion from an international relationship. Second quarter of 2024 includes net inflows of $2.7 billion from off-platform Schwab Bank Retail CDs and an inflow of $10.3 billion from a mutual fund clearing services client. First quarter of 2024 includes net outflows of $7.4 billion from off-platform Schwab Bank Retail CDs. Fourth quarter of 2023 includes net inflows of $2.4 billion from off-platform Schwab Bank Retail CDs and outflows of $5.8 billion from an international relationship. Third quarter of 2023 includes net inflows of $3.3 billion from off-platform Schwab Bank Retail CDs.

(5) Fourth quarter of 2023 includes outflows of $6.4 billion from an international relationship. Third quarter of 2023 includes an outflow of $0.8 billion from an international relationship.

(6) Beginning in the fourth quarter 2023, Retirement Plan Participants was expanded to include accounts in Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business. Third quarter 2023 has been recast to reflect this change.

			2023												2024																											Change
			Sep			Oct			Nov			Dec			Jan			Feb			Mar			Apr			May			Jun			Jul			Aug			Sep			Mo.			Yr.
Market Indices (at month end)
Dow Jones Industrial Average®			33,508			33,053			35,951			37,690			38,150			38,996			39,807			37,816			38,686			39,119			40,843			41,563			42,330			2		%	26		%
Nasdaq Composite®			13,219			12,851			14,226			15,011			15,164			16,092			16,379			15,658			16,735			17,733			17,599			17,714			18,189			3		%	38		%
Standard & Poor’s® 500			4,288			4,194			4,568			4,770			4,846			5,096			5,254			5,036			5,278			5,460			5,522			5,648			5,762			2		%	34		%
Client Assets (in billions of dollars)
Beginning Client Assets			8,094.7			7,824.5			7,653.4			8,180.6			8,516.6			8,558.1			8,879.5			9,118.4			8,847.5			9,206.3			9,407.5			9,572.1			9,737.7
Net New Assets (1)			27.2			5.0			19.2			42.1			14.8			31.7			41.7			10.0			31.0			33.2			29.0			31.5			30.3			(4)		%	11		%
Net Market Gains (Losses)			(297.4)			(176.1)			508.0			293.9			26.7			289.7			197.2			(280.9)			327.8			168.0			135.6			134.1			152.5
Total Client Assets (at month end)			7,824.5			7,653.4			8,180.6			8,516.6			8,558.1			8,879.5			9,118.4			8,847.5			9,206.3			9,407.5			9,572.1			9,737.7			9,920.5			2		%	27		%
Core Net New Assets (1,2)			27.1			11.3			21.7			43.1			17.2			33.4			45.0			1.0			31.1			29.1			29.0			32.8			33.5			2		%	24		%
Receiving Ongoing Advisory Services (at month end)
Investor Services			533.0			522.2			557.0			581.4			584.1			601.8			618.5			602.2			624.0			632.9			649.1			663.7			675.1			2		%	27		%
Advisor Services (3)			3,448.0			3,380.3			3,604.4			3,757.4			3,780.4			3,902.5			4,009.5			3,893.9			4,027.3			4,090.0			4,185.4			4,268.1			4,343.8			2		%	26		%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts			34,540			34,571			34,672			34,838			35,017			35,127			35,301			35,426			35,524			35,612			35,743			35,859			35,982			—			4		%
Banking Accounts			1,799			1,812			1,825			1,838			1,856			1,871			1,885			1,901			1,916			1,931			1,937			1,940			1,954			1		%	9		%
Workplace Plan Participant Accounts (4)			5,141			5,212			5,212			5,221			5,226			5,268			5,277			5,282			5,345			5,363			5,382			5,373			5,388			—			5		%
Client Activity
New Brokerage Accounts (in thousands)			280			284			286			340			366			345			383			361			314			310			327			324			321			(1)		%	15		%
Client Cash as a Percentage of Client Assets (5)			10.8		%	11.2		%	10.7		%	10.5		%	10.5		%	10.2		%	10.0		%	10.2		%	9.9		%	9.7		%	9.6		%	9.5		%	9.5		%	—			(130) bp
Derivative Trades as a Percentage of Total Trades			24.2		%	23.2		%	23.1		%	21.8		%	21.8		%	22.2		%	21.9		%	22.1		%	21.9		%	21.3		%	21.2		%	20.8		%	21.5		%	70 bp			(270) bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (6)			444,864			438,522			439,118			446,305			443,694			434,822			431,456			423,532			415,950			417,150			417,379			420,191			420,203			—			(6)		%
Average Margin Balances			64,014			63,946			61,502			62,309			61,368			63,600			66,425			68,827			67,614			69,730			73,206			73,326			72,755			(1)		%	14		%
Average Bank Deposit Account Balances (7)			100,404			97,893			94,991			95,518			95,553			92,075			90,774			88,819			86,844			85,195			83,979			82,806			82,336			(1)		%	(18)		%
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) (8,9) (in millions of dollars)
Equities			675			(3,039)			6,099			7,903			8,182			7,624			10,379			3,472			5,734			3,379			10,908			5,609			5,217
Hybrid			(828)			(1,457)			(1,466)			(1,596)			(501)			(1,330)			(439)			(703)			(558)			(843)			(1,155)			(1,377)			(432)
Bonds			2,723			1,094			255			6,104			7,510			9,883			7,561			5,949			5,854			6,346			8,651			10,919			11,015
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (8)			(5,853)			(12,245)			(9,267)			(7,406)			(966)			(1,348)			(1,607)			(4,818)			(5,544)			(4,254)			(4,679)			(4,003)			(1,261)
Exchange-Traded Funds (9)			8,423			8,843			14,155			19,817			16,157			17,525			19,108			13,536			16,574			13,136			23,083			19,154			17,061
Money Market Funds			13,388			16,976			11,670			7,745			11,717			10,129			9,085			(2,357)			9,790			3,858			9,110			8,048			9,672

Note: Certain supplemental details related to the information above can be found at: https://www.aboutschwab.com/financial-reports.

(1) Unless otherwise noted, differences between net new assets and core net new assets are net flows from off-platform Schwab Bank Retail CDs. Additionally, 2024 includes an outflow from a large international relationship of $0.1 billion in August and an inflow of $10.3 billion from a mutual fund clearing services client in April. 2023 also includes outflows from a large international relationship of $0.8 billion in September, $6.2 billion in October, $5.4 billion in November, and $0.6 billion in December.

(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, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods.

(3) Excludes Retirement Business Services.

(4) Beginning October 2023, Retirement Plan Participants was expanded to include accounts in Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business. September 2023 has been recast to reflect this change.

(5) Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets; client cash excludes brokered CDs issued by Charles Schwab Bank.

(6) Represents average total interest-earning assets on the Company’s balance sheet.

(7) Represents average clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions.

(8) 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.

(9) Represents the principal value of client ETF transactions handled by Schwab, including transactions in proprietary ETFs.

In addition to disclosing financial results in accordance with generally accepted accounting principles in the U.S. (GAAP), Schwab’s third 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. Beginning in the third quarter of 2023, these adjustments also include restructuring costs, which the Company began incurring in connection with its previously announced plans to streamline its operations to prepare for post-integration of Ameritrade. See Part I – Item 1 – Note 10 of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 for additional information.

The Company also uses adjusted diluted EPS and return on tangible common equity as components of performance criteria for employee bonus and certain executive management incentive compensation arrangements. The Compensation Committee of CSC’s Board of Directors maintains discretion in evaluating performance against these criteria. Additionally, the Company uses adjusted Tier 1 Leverage Ratio in managing capital, including its use of the measure as its long-term operating objective.

The tables below present reconciliations of GAAP measures to non-GAAP measures:

(1) Acquisition and integration-related costs for the three and nine months ended September 30, 2024 primarily consist of $9 million and $44 million of compensation and benefits, $3 million and $32 million of professional services, and $8 million and $13 million of depreciation and amortization. Acquisition and integration-related costs for the three and nine months ended September 30, 2023 primarily consist of $52 million and $158 million of compensation and benefits, $37 million and $111 million of professional services, $7 million and $21 million of occupancy and equipment, and $4 million and $26 million of other.

(2) Restructuring costs for the nine months ended September 30, 2024 reflect a change in estimate of $34 million in compensation and benefits, offset by $3 million of occupancy and equipment and $13 million of other. Restructuring costs for the three and nine months ended September 30, 2023 primarily consist of $276 million of compensation and benefits.

(3) The income tax effects of the non-GAAP adjustments are determined using an effective tax rate reflecting the exclusion of non-deductible acquisition costs and are used to present the acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs on an after-tax basis.

N/A Not applicable.

			Three Months Ended September 30,									Nine Months Ended September 30,
			2024			2023						2024			2023
Return on average common stockholders’ equity (GAAP)			14		%	14		%				14		%	18		%
Average common stockholders’ equity			$	36,393		$	28,274					$	34,895		$	27,747
Less: Average goodwill			(11,951)			(11,951)						(11,951)			(11,951)
Less: Average acquired intangible assets — net			(7,938)			(8,457)						(8,067)			(8,589)
Plus: Average deferred tax liabilities related to goodwill   and acquired intangible assets — net			1,735			1,822						1,747			1,830
Average tangible common equity			$	18,239		$	9,688					$	16,624		$	9,037
Adjusted net income available to common stockholders (1)			$	1,416		$	1,410					$	4,118		$	4,493
Return on tangible common equity (non-GAAP)			31		%	58		%				33		%	66		%

(1) See table above for the reconciliation of net income available to common stockholders to adjusted net income available to common stockholders (non-GAAP).