EXHIBIT 99.1



News Release

 

Contacts:

 

C:\Users\tiffany.dietz\Desktop\LOG-CSCrprtn-Stck-core_blue (3).jpg

Media:

Joe Carberry

Charles Schwab

Phone: 415-667-1677

Investors/Analysts:

Rich Fowler

Charles Schwab

Phone: 415-667-1841



SCHWAB FOURTH QUARTER NET INCOME OF $522 MILLION CAPS RECORD YEAR

2016 Revenues Rise 17% to $7.5 Billion, Net Income Grows 31% to $1.9 Billion, Both Records

Total Client Assets Rise 11% to a Record $2.78 Trillion at Year-end



SAN FRANCISCO, January 18, 2017

– The Charles Schwab Corporation announced today that its net income for the fourth quarter of 2016 was a record $522 million, up 4% from $503 million for the prior quarter, and up 25% from $416 million for the fourth quarter of 2015. Net income for the twelve months ended December 31, 2016 was $1.9 billion, up 31% year-over-year.  









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended

 

 

 

 

Twelve Months Ended

 

 

 



 

December 31,

 

%

 

December 31,

 

%

Financial Highlights

 

2016

 

2015

 

Change

 

2016

 

2015

 

Change



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues (in millions)

 

$

1,972 

 

 

$

1,691 

 

 

17 

%

 

$

7,478 

 

 

$

6,380 

 

 

17 

%

Net income (in millions)

 

$

522 

 

 

$

416 

 

 

25 

%

 

$

1,889 

 

 

$

1,447 

 

 

31 

%

Diluted earnings per common share

 

$

.36 

 

 

$

.28 

 

 

29 

%

 

$

1.31 

 

 

$

1.03 

 

 

27 

%

Pre-tax profit margin

 

 

41.8 

%

 

 

38.1 

%

 

 

 

 

 

40.0 

%

 

 

35.7 

%

 

 

 

Return on average common 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 stockholders’ equity (annualized)

 

 

14 

%

 

 

13 

%

 

 

 

 

 

14 

%

 

 

12 

%

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS Impact of Certain Non-Recurring Items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net litigation proceeds (1)

 

$

 -

 

 

$

.03 

 

 

 

 

 

$

.01 

 

 

$

.04 

 

 

 

 

Net tax benefits (2)

 

$

 -

 

 

$

.01 

 

 

 

 

 

$

 -

 

 

$

.02 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





 

(1)

Net litigation proceeds include $57 million in the fourth quarter of 2015, and $16 million and $75 million in full-year 2016 and 2015, respectively, relating to the company’s non-agency residential mortgage-backed securities (RMBS) portfolio, which are included in Other revenue.

(2)

Net tax benefits include $15 million in the fourth quarter of 2015 and $29 million for the full year, relating to certain current and prior-year matters, which are included in Taxes on income.



CEO Walt Bettinger said, “Schwab achieved truly noteworthy results in 2016 by sustaining our ‘Through Clients’ Eyes’ strategy and working to earn our clients’ trust every day. During the year, from disappointing economic news early on, to the disruption of the Brexit vote, and then through the tumult of the presidential election, clients could trust that Schwab stood ready to help them navigate market volatility, and they made active use of our full-service capabilities. Our financial consultants held planning conversations with approximately 132,000 clients last year, up 18% from 2015. Client assets enrolled in one of our retail advisory solutions and those guided by independent advisors totaled $1.40 trillion at the end of 2016, up 12%. New and existing clients brought $125.5 billion in core net new assets to Schwab during 2016, marking a 5% annual organic growth rate and the 5th consecutive year over $100 billion. Net new assets in our Retail and Advisor Services businesses rose by 10% and 21%, respectively, over the prior year, while Mutual Fund Clearing and Retirement Plan flows slowed due to client turnover. Total client assets at year-end were a record $2.78 trillion, up 11%.

1


The following information was filed by Schwab Charles Corp (SCHW) on Wednesday, January 18, 2017 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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