Schwab Charles Corp (SCHW) SEC Filing 10-K Annual report for the fiscal year ending Tuesday, December 31, 2019

Earnings Press Release
10-K Annual Report
10-K YoY Changes
Schwab Charles Corp
Ticker: SCHW CIK: 316709



		EXHIBIT 99.1
News Release Contacts:
MEDIA: Mayura Hooper Charles Schwab Phone: 415-667-1525	INVESTORS/ANALYSTS: Rich Fowler Charles Schwab Phone: 415-667-1841

SCHWAB REPORTS 4Q EARNINGS PER SHARE OF $.62 AND A RECORD $2.67 FOR 2019

Full Year Revenues and Net Income Grow 6% to $10.7 Billion and $3.7 Billion, Respectively, Both Records

Core Net New Assets Total $211.7 Billion, Representing a 7% Organic Growth Rate

SAN FRANCISCO, January 16, 2020

– The Charles Schwab Corporation announced today that its net income for the fourth quarter of 2019 was $852 million, down 9% from $935 million for the fourth quarter of 2018. Net income for the twelve months ended December 31, 2019 was a record $3.7 billion, up 6% year-over-year. The company’s financial results for the fourth quarter and full-year 2019 include acquisition-related expenses and severance charges described below.



	Three Months Ended December 31,						%	Twelve Months Ended December 31,						%
Financial Highlights	2019			2018			Change	2019			2018			Change

Net revenues (in millions)	$	2,606		$	2,669		(2)%	$	10,721		$	10,132		6%
Net income (in millions)	$	852		$	935		(9)%	$	3,704		$	3,507		6%
Diluted earnings per common share	$	.62		$	.65		(5)%	$	2.67		$	2.45		9%
Pre-tax profit margin	42.7		%	45.3		%		45.2		%	45.0		%
Return on average common
stockholders’ equity (annualized)	17		%	20		%		19		%	19		%
EPS Impact of Certain Items
$25 million in expenses relating to	$	(.01	)	—				$	(.01	)	—
pending acquisitions ⁽¹⁾
$62 million charge relating to position	$	—		—				$	(.04	)	—
eliminations ⁽²⁾

Note: All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding.

⁽¹⁾ The pre-tax acquisition-related expenses associated with the pending USAA and TD Ameritrade transactions include $17 million in the fourth quarter and $25 million for the year. These expenses reduced fourth quarter and full-year earnings per share by $.01, and are primarily included in professional services expense.

⁽²⁾The pre-tax severance charges related to position eliminations in the third quarter of 2019, which reduced quarterly earnings per share by $.04, are included in compensation and benefits expense.

CEO Walt Bettinger said, “In 2019, we stayed true to our heritage of challenging the status quo to benefit individual investors and the independent advisors who serve them. Throughout the year, investor sentiment reflected a complex market environment that included ongoing global trade negotiations, the Brexit debate, and an uncertain economic outlook at home. The Federal Reserve reversed course on monetary policy, cutting the Fed Funds target three times in 2019, and the yield on 10-year Treasury notes hit a low of 1.47% before rebounding to average 2.14% for the year – leaving the rate environment significantly lower than our initial expectations. At the same time, stocks continued their steady march upward, with the S&P 500 rising 29% in the year to record levels. Both of our primary businesses contributed to core net new assets of $211.7 billion, which included record fourth quarter core net new assets of $66.2 billion and represented a

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The following information was filed by Schwab Charles Corp (SCHW) on Thursday, January 16, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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