EXHIBIT 99.1

News Release

Contacts:
cslogoa031a.jpg
MEDIA:
Mayura Hooper
Charles Schwab
Phone: 415-667-1525
INVESTORS/ANALYSTS:
Jeff Edwards
Charles Schwab
Phone: 415-667-1524

SCHWAB REPORTS RECORD FIRST QUARTER EARNINGS PER SHARE
Unprecedented Client Engagement Included $148.2 Billion in Core Net New Assets,
3.2 Million New Brokerage Accounts and 8.4 Million Daily Average Trades, All Records

    WESTLAKE, Texas, April 15, 2021 – The Charles Schwab Corporation announced today that its net income for the first quarter of 2021 was a record $1.5 billion, compared with $1.1 billion for the fourth quarter of 2020, and $795 million for the first quarter of 2020. 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 $273 million pre-tax for the first quarter of 2021.
Three Months Ended March 31,%
Financial Highlights20212020Change
Net revenues (in millions)$4,715 $2,617 80%
Net income (in millions)
GAAP$1,484 $795 87%
Adjusted (1)
$1,690 $827 104%
Diluted earnings per common share
GAAP$.73 $.58 26%
Adjusted (1)
$.84 $.61 38%
Pre-tax profit margin
GAAP41.6 %40.0 %
Adjusted (1)
47.4 %41.7 %
Return on average common
    stockholders’ equity (annualized)12 %14 %
Return on tangible
common equity (annualized) (1)
24 %16 %
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 GAAP reported results are included on pages 10-11 of this release.

CEO Walt Bettinger said, “The first three months of 2021 have in many ways been both the most successful and the most challenging in our history. As the U.S. economic recovery advanced, supported by expanding COVID-19 vaccine rollouts and government aid packages, the equity markets continued to climb, with the S&P 500® rising 78% between the pandemic-driven low in March 2020 and the end of this year’s first quarter. Interest rates began to lift as well, with the 10-year Treasury yield moving to 1.74% by quarter-end – its highest level since January 2020. This environment contributed to another rise in client engagement and activity beyond the record levels of late last year. As investors turned to Schwab for help in navigating current conditions, they opened 3.2 million new brokerage accounts – a level that exceeds our reported total for all of 2020, excluding the accounts we acquired as part of our recent M&A activity. At the same time, elevated interest in technology and other growth-oriented stocks, as well as heightened market attention to certain names via social media, significantly bolstered trading activity. Daily trades rose to an average of 8.4 million in the first three months of 2021, with a single day peak of 12.3 million. That

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average is approximately four times higher than the pro forma combined pace for the fourth quarter of 2019 – the onset of the $0 online equity commission era. Amidst this surge in activity, investors entrusted us with $148.2 billion in core net new assets – including $62.6 billion in March alone – up 102% from a year ago, and 24% higher than the record we just set last quarter. This strength in asset gathering enabled us to end March serving a record $7.07 trillion in client assets, up 102% from a year ago, and up 6% in just three months.”

Mr. Bettinger continued, “Early in the first quarter, we were challenged to keep pace with extraordinary activity from both new and existing clients. On the heels of an already strong 2020, retail call volumes accelerated further to 8.3 million across the combined company, up 19% from a year ago and 51% above the busiest quarter in 2019. In addition, mobile and web logins topped 1.1 billion, up 138% year-over-year. This strength in engagement was felt broadly – all of our top 25 market opens occurred during the first quarter, and we have seen multiple days where we handled at least 10 million trades and concurrently accommodated more than 15 million logins across mobile and web. With activity levels running well beyond anything we’ve ever seen, our service quality was impacted at times. As a result, we took multiple steps to better deliver the service experience our clients deserve and rely on, including enhancing online self-service capabilities, streamlining our call-routing processes, and actively ramping up hiring to expand capacity. We’ve increased our team of client service professionals by 10% since month-end December and are developing a pipeline of talent to support ongoing growth. Our efforts were already yielding results by quarter-end, with average speed-to-answer progressing back towards a more normalized range and call handle times declining back to late 2020 levels. Whatever lies ahead for us during the remainder of the year, living up to our ‘no trade-offs’ approach to service is our priority. Our team comes to work each day committed to earning the trust clients place in us to do just that.”

CFO Peter Crawford commented, “Schwab’s strong financial performance in early 2021 reflects the power of our diversified revenue streams. Net interest revenue grew 6% versus the fourth quarter of 2020, largely due to elevated margin utilization and higher overall interest-earning assets stemming from rising client cash balances. These factors more than offset the ongoing impacts of the Fed’s Zero Interest Rate Policy, including elevated prepayments of mortgage-backed securities. Asset management and administration fees increased 3% from the fourth quarter of 2020 as growth in advisory solution balances and strong equity markets more than offset a small increase in money market fund fee waivers. Trading revenue rose dramatically, up 42% sequentially, boosted by early-2021 market events on top of an already busy trading environment. Bank deposit account fee revenue declined 1% as balances ended the first quarter relatively flat to December 31 at $164.2 billion and certain balances repriced to current rates. Altogether, total revenues grew 13% from the prior quarter to a record $4.7 billion. On the expense side, total GAAP spending increased 2% to $2.8 billion for the quarter, including $119 million in acquisition and integration-related costs and $154 million in amortization of acquired intangibles. Exclusive of these items (1), adjusted total expenses were up 9% quarter-over-quarter, reflecting the impact of extraordinary client activity alongside our planned spending. Overall, our ability to maintain disciplined expense management while investing to support current and future growth through this period enabled us to produce a 41.6% pre-tax profit margin – our highest level in four quarters – or 47.4% on an adjusted basis (1).”

Mr. Crawford concluded, “During the first quarter we took advantage of favorable market conditions to help optimize our capital mix. We executed two preferred offerings equal to $2.25 billion and $600 million – which placed outstanding balances at the upper-end of our 25%-30% guideline relative to Total Tier 1 Capital. As previously announced, proceeds from the more recent Series J issuance will be used to redeem our $600 million Series C preferred. Additionally, we moved to enhance our liquidity position ahead of pending debt maturities by issuing 3- and 7- year senior notes totaling $4 billion in March. Our priority for capital management remains centered on maintaining flexibility to support ongoing growth – which will soon include the first Bank Deposit Account transfers, set to begin as early as June 30 – while also helping us move towards our long-term Tier 1 Leverage Ratio operating objective of 6.75%-7.00%. Consolidated balance sheet assets ended the quarter at $563 billion, up 3% from December 31 and our preliminary Tier 1 Leverage Ratio increased to 6.4%. Overall, our healthy financial performance, high-quality balance sheet, and solid capital base enabled us to achieve a 12% return on equity and a 24% ROTCE (1) for the first quarter. Confidence in our all-weather business model, coupled with a focus on balancing near-term profitability and long-term investment, enables us to continue driving scale while endeavoring to meet our clients’ needs.”

(1) Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-11 of this release.

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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 trends in client trading activity, was posted on March 12, 2021.

Forward-Looking Statements
This press release contains forward-looking statements relating to actions being taken to expand capacity, enhance service quality and support ongoing growth; maintaining disciplined expense management while investing to support current and future growth, meet client needs, and drive scale and efficiency; guideline percentage of preferred stock relative to Total Tier 1 Capital; Tier 1 Leverage Ratio operating objective; capital management; Bank Deposit Account transfers; and balancing near-term profitability and long-term investment. 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 and capacity, in a timely and successful manner; hire talent; support client activity levels; successfully implement integration strategies and plans; manage expenses; attract and retain clients and registered investment advisors and grow those relationships and client assets; and monetize client assets. Other important factors include general market conditions, including equity valuations, trading activity, the level of interest rates – which can impact money market fund fee waivers, and credit spreads; market volatility; client use of the company’s advisory solutions and other products and services; capital and liquidity needs and management; client sensitivity to rates; level of client assets, including cash balances; the transfer of Bank Deposit Account balances; balance sheet cash; 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 report on Form 10-K.

About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 31.9 million active brokerage accounts, 2.1 million corporate retirement plan participants, 1.6 million banking accounts, and approximately $7.07 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.

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THE CHARLES SCHWAB CORPORATION
Consolidated Statements of Income
(In millions, except per share amounts)
(Unaudited)




Three Months Ended
March 31,
20212020
Net Revenues
Interest revenue$2,015 $1,708 
Interest expense(104)(136)
Net interest revenue1,911 1,572 
Asset management and administration fees (1)
1,016 827 
Trading revenue1,216 188 
Bank deposit account fees351 — 
Other221 30 
Total net revenues4,715 2,617 
Expenses Excluding Interest
Compensation and benefits1,430 897 
Professional services226 182 
Occupancy and equipment237 142 
Advertising and market development116 67 
Communications147 75 
Depreciation and amortization (2)
129 90 
Amortization of acquired intangible assets (2)
154 
Regulatory fees and assessments78 34 
Other238 77 
Total expenses excluding interest2,755 1,570 
Income before taxes on income1,960 1,047 
Taxes on income476 252 
Net Income1,484 795 
Preferred stock dividends and other96 38 
Net Income Available to Common Stockholders$1,388 $757 
Weighted-Average Common Shares Outstanding:
Basic1,882 1,287 
Diluted1,892 1,294 
Earnings Per Common Shares Outstanding (3):
Basic$.74 $.59 
Diluted$.73 $.58 

(1) Includes fee waivers of $78 million for the three months ended March 31, 2021.
(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) For the three months ended March 31, 2021, 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.
        
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THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)
Q1-21 % change20212020
vs.vs.FirstFourthThirdSecondFirst
(In millions, except per share amounts and as noted)Q1-20Q4-20QuarterQuarterQuarterQuarterQuarter
Net Revenues
Net interest revenue22 %%$1,911 $1,809 $1,343 $1,389 $1,572 
Asset management and administration fees23 %%1,016 987 860 801 827 
Trading revenueN/M42 %1,216 854 181 193 188 
Bank deposit account feesN/M(1)%351 355 — — — 
OtherN/M29 %221 171 64 67 30 
Total net revenues80 %13 %4,715 4,176 2,448 2,450 2,617 
Expenses Excluding Interest
Compensation and benefits59 %%1,430 1,398 840 819 897 
Professional services24 %(16)%226 269 194 198 182 
Occupancy and equipment67 %(7)%237 254 155 152 142 
Advertising and market development73 %(6)%116 123 66 70 67 
Communications96 %16 %147 127 73 78 75 
Depreciation and amortization (1)
43 %(1)%129 130 97 97 90 
Amortization of acquired intangible assets (1)
N/M%154 147 25 12 
Regulatory fees and assessments129 %37 %78 57 36 36 34 
OtherN/M22 %238 195 73 100 77 
Total expenses excluding interest75 %%2,755 2,700 1,559 1,562 1,570 
Income before taxes on income87 %33 %1,960 1,476 889 888 1,047 
Taxes on income89 %40 %476 341 191 217 252 
Net Income87 %31 %$1,484 $1,135 $698 $671 $795 
Preferred stock dividends and other153 %13 %96 85 83 50 38 
Net Income Available to Common Stockholders83 %32 %$1,388 $1,050 $615 $621 $757 
Earnings per common share (2):
Basic25 %30 %$.74 $.57 $.48 $.48 $.59 
Diluted26 %28 %$.73 $.57 $.48 $.48 $.58 
Dividends declared per common share— — $.18 $.18 $.18 $.18 $.18 
Weighted-average common shares outstanding:
Basic46 %%1,882 1,848 1,289 1,288 1,287 
Diluted46 %%1,892 1,855 1,294 1,294 1,294 
Performance Measures
Pre-tax profit margin41.6 %35.3 %36.3 %36.2 %40.0 %
Return on average common stockholders’ equity (annualized) (3)
12 %11 %10 %10 %14 %
Financial Condition (at quarter end, in billions)
Cash and cash equivalents(29)%21 %$48.6 $40.3 $27.5 $33.6 $68.5 
Cash and investments segregated18 %(20)%40.4 50.4 29.6 33.2 34.3 
Receivables from brokerage clients — netN/M16 %74.7 64.4 25.4 21.4 19.0 
Available for sale securities54 %%341.6 337.4 303.8 281.2 221.2 
Bank loans — net30 %%25.4 23.8 22.3 20.9 19.5 
Total assets52 %%563.5 549.0 419.4 400.5 370.8 
Bank deposits33 %%369.9 358.0 320.7 301.6 277.5 
Payables to brokerage clients105 %(3)%101.3 104.2 52.0 50.1 49.3 
Short-term borrowingsN/MN/M2.5 — — — — 
Long-term debt108 %30 %17.7 13.6 7.8 8.5 8.5 
Stockholders’ equity111 %(1)%55.6 56.1 31.3 30.8 26.3 
Other
Full-time equivalent employees (at quarter end, in thousands)58 %— 32.0 32.0 22.1 21.8 20.2 
Capital expenditures — purchases of equipment, office facilities, and
        property, net (in millions)
(16)%%$209 $200 $122 $169 $250 
Expenses excluding interest as a percentage of average client assets
  (annualized)
0.16 %0.17 %0.14 %0.16 %0.16 %
Clients’ Daily Average Trades (DATs) (in thousands)
N/M45 %8,414 5,796 1,460 1,619 1,540 
Number of Trading Days(2)%(3)%61.0 63.0 64.0 63.0 62.0 
Revenue Per Trade (4)
20 %%$2.37 $2.34 $1.94 $1.89 $1.97 
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 third quarter of 2020, amortization of acquired intangible assets was reclassified from depreciation and amortization. Prior periods have been reclassified to reflect this change.
(2) Beginning in 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.
(3) Return on average common stockholders’ equity is calculated using net income available to common stockholders divided by average common stockholders’ equity.
(4) Revenue per trade is calculated as trading revenue divided by DATs multiplied by the number of trading days.
N/M Not meaningful. Percentage changes greater than 200% are presented as not meaningful.

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THE CHARLES SCHWAB CORPORATION
Net Interest Revenue Information
(In millions, except ratios or as noted)
(Unaudited)
Three Months Ended
March 31,
20212020
Average
Balance
Interest
Revenue/
Expense
Average
Yield/
Rate
Average
Balance
Interest
Revenue/
Expense
Average
Yield/
Rate
Interest-earning assets
Cash and cash equivalents$38,898 $0.08 %$32,134 $85 1.04 %
Cash and investments segregated48,149 10 0.08 %23,716 87 1.45 %
Receivables from brokerage clients67,738 563 3.32 %19,151 168 3.47 %
Available for sale securities (1)
338,245 1,091 1.29 %197,745 1,185 2.39 %
Bank loans24,476 139 2.27 %18,897 144 3.06 %
Total interest-earning assets517,506 1,810 1.40 %291,643 1,669 2.28 %
Securities lending revenue (2)
204 37 
Other interest revenue (2)
Total interest-earning assets (3)
$517,506 $2,015 1.56 %$291,643 $1,708 2.33 %
Funding sources
Bank deposits$363,099 $13 0.01 %$227,523 $57 0.10 %
Payables to brokerage clients87,339 0.01 %30,287 0.10 %
Short-term borrowings (4)
1,093 — 0.22 %— 1.07 %
Long-term debt14,245 85 2.37 %7,527 66 3.53 %
Total interest-bearing liabilities465,776 100 0.09 %265,340 131 0.20 %
Non-interest-bearing funding sources (3)
51,730 26,303 
Securities lending expense (2)
Other interest expense (2)
(1)(2)
Total funding sources (3)
$517,506 $104 0.08 %$291,643 $136 0.19 %
Net interest revenue$1,911 1.48 %$1,572 2.14 %
(1) Amounts have been calculated based on amortized cost.
(2) 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.
(3) 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.
(4) Interest revenue or expense was less than $500 thousand in the period or periods presented.
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THE CHARLES SCHWAB CORPORATION
Asset Management and Administration Fees Information
(In millions, except ratios or as noted)
(Unaudited)

Three Months Ended
March 31,
20212020
Average
Client
Assets
RevenueAverage
Fee
Average
Client
Assets
RevenueAverage
Fee
Schwab money market funds before fee waivers$169,683 $122 0.29 %$203,772 $152 0.30 %
Fee waivers(78)— 
Schwab money market funds169,683 44 0.11 %203,772 152 0.30 %
Schwab equity and bond funds, ETFs, and
  collective trust funds (CTFs)
377,282 86 0.09 %290,808 76 0.11 %
Mutual Fund OneSource® and other non-
  transaction fee funds
222,455 172 0.31 %188,583 147 0.31 %
Other third-party mutual funds and ETFs (1)
849,409 168 0.08 %451,959 77 0.07 %
Total mutual funds, ETFs, and CTFs (2)
$1,618,829 470 0.12 %$1,135,122 452 0.16 %
Advice solutions (2)
Fee-based$424,629 468 0.45 %$263,256 312 0.48 %
Non-fee-based84,767 — — 71,229 — — 
Total advice solutions$509,396 468 0.37 %$334,485 312 0.38 %
Other balance-based fees (3)
576,562 64 0.05 %432,847 54 0.05 %
Other (4)
14 
Total asset management and administration fees$1,016 $827 
(1) Beginning in the fourth quarter of 2020, includes third-party money funds related to the acquisition of TD Ameritrade.
(2) 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 Premium®, 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.
(3) Includes various asset-related fees, such as trust fees, 401(k) recordkeeping fees, and mutual fund clearing fees and other service fees.
(4) Includes miscellaneous service and transaction fees relating to mutual funds and ETFs that are not balance-based.
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THE CHARLES SCHWAB CORPORATION
Growth in Client Assets and Accounts
(Unaudited)

Q1-21 % Change20212020
vs.vs.FirstFourthThirdSecondFirst
(In billions, at quarter end, except as noted)Q1-20Q4-20QuarterQuarterQuarterQuarterQuarter
Assets in client accounts
Schwab One®, certain cash equivalents and bank deposits
44 %%$467.3 $458.4 $370.3 $349.2 $324.4 
Bank deposit account balancesN/M(1)%164.2 165.9 — — — 
Proprietary mutual funds (Schwab Funds® and Laudus Funds®) and CTFs
Money market funds (1)
(20)%(7)%163.6 176.1 190.3 211.6 203.7 
Equity and bond funds and CTFs (2)
54 %%152.9 142.9 125.5 117.0 99.1 
Total proprietary mutual funds and CTFs%(1)%316.5 319.0 315.8 328.6 302.8 
Mutual Fund Marketplace® (3)
Mutual Fund OneSource® and other non-transaction fee funds
41 %%227.3 223.9 203.6 193.0 161.6 
Mutual fund clearing services38 %(2)%248.7 252.9 228.4 217.3 180.8 
Other third-party mutual funds (4)
103 %%1,375.8 1,304.6 848.1 796.5 676.2 
Total Mutual Fund Marketplace82 %%1,851.8 1,781.4 1,280.1 1,206.8 1,018.6 
Total mutual fund assets64 %%2,168.3 2,100.4 1,595.9 1,535.4 1,321.4 
Exchange-traded funds (ETFs)
Proprietary ETFs (2)
62 %11 %220.9 198.8 168.9 156.3 136.5 
Other third-party ETFs171 %%1,035.1 947.3 512.6 468.0 382.5 
Total ETF assets142 %10 %1,256.0 1,146.1 681.5 624.3 519.0 
Equity and other securities163 %%2,721.0 2,504.7 1,453.2 1,305.8 1,035.5 
Fixed income securities16 %(3)%364.5 377.1 318.0 314.8 313.8 
Margin loans outstandingN/M19 %(72.2)(60.9)(23.6)(19.4)(17.2)
Total client assets102 %%$7,069.1 $6,691.7 $4,395.3 $4,110.1 $3,496.9 
Client assets by business
Investor Services109 %%$3,865.9 $3,667.9 $2,377.7 $2,223.5 $1,846.8 
Advisor Services94 %%3,203.2 3,023.8 2,017.6 1,886.6 1,650.1 
Total client assets102 %%$7,069.1 $6,691.7 $4,395.3 $4,110.1 $3,496.9 
Net growth in assets in client accounts (for the quarter ended)
Net new assets by business
Investor Services (5)
84 %(93)%$65.1 $939.2 $18.9 $113.0 $35.3 
Advisor Services (6)
81 %(91)%68.7 751.5 32.3 24.4 37.9 
Total net new assets83 %(92)%$133.8 $1,690.7 $51.2 $137.4 $73.2 
Net market gains (losses)N/M(60)%243.6 605.7 234.0 475.8 (615.1)
Net growth (decline)N/M(84)%$377.4 $2,296.4 $285.2 $613.2 $(541.9)
New brokerage accounts (in thousands, for the quarter ended) (7)
N/M(80)%3,153 15,774 592 1,652 609 
Client accounts (in thousands)
Active brokerage accounts150 %%31,902 29,629 14,393 14,107 12,736 
Banking accounts13 %%1,608 1,499 1,486 1,463 1,426 
Corporate retirement plan participants22 %%2,105 2,054 1,722 1,716 1,721 
(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 March 31, 2021, off-platform equity and bond funds, CTFs, and ETFs were $18.5 billion, $5.8 billion, and $72.4 billion, respectively.
(3) Excludes all proprietary mutual funds and ETFs.
(4) As of March 31, 2021, third-party money funds were $18.2 billion.
(5) First quarter of 2021 includes an outflow of $14.4 billion from a mutual fund clearing services client. 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.
(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. Percentage changes greater than 200% are presented as not meaningful.
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The Charles Schwab Corporation Monthly Activity Report For March 2021
2020                  2021    Change
MarAprMayJunJulAugSepOctNovDecJanFebMarMo.Yr.
Market Indices (at month end)
Dow Jones Industrial Average21,917 24,346 25,383 25,813 26,428 28,430 27,782 26,502 29,639 30,606 29,983 30,932 32,982 %50 %
Nasdaq Composite7,700 8,890 9,490 10,059 10,745 11,775 11,168 10,912 12,199 12,888 13,071 13,192 13,247 — 72 %
Standard & Poor’s® 500
2,585 2,912 3,044 3,100 3,271 3,500 3,363 3,270 3,622 3,756 3,714 3,811 3,973 %54 %
Client Assets (in billions of dollars)
Beginning Client Assets3,862.8 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 6,759.6 6,900.5 
Net New Assets (1)
27.9 15.3 97.5 24.6 11.2 20.0 20.0 1,596.9 32.1 61.7 34.2 37.0 62.6 69 %124 %
Net Market Gains (Losses)(393.8)266.1 133.2 76.5 156.7 191.7 (114.4)(113.7)510.4 209.0 33.7 103.9 106.0 
Total Client Assets (at month end)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 6,759.6 6,900.5 7,069.1 %102 %
Core Net New Assets (2)
27.9 15.3 17.6 13.7 2.7 20.0 20.0 25.6 32.1 61.7 34.2 51.4 62.6 22 %124 %
Receiving Ongoing Advisory Services (at month end) (3)
Investor Services291.5 309.9 339.8 345.2 355.6 366.8 361.2 425.3 457.1 471.8 472.4 481.3 495.2 %70 %
Advisor Services (4)
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 2,840.6 2,913.3 2,997.9 %96 %
Client Accounts (at month end, in thousands)
Active Brokerage Accounts 12,736 12,866 14,007 14,107 14,220 14,311 14,393 29,013 29,202 29,629 30,534 31,523 31,902 %150 %
Banking Accounts1,426 1,439 1,448 1,463 1,480 1,493 1,486 1,496 1,504 1,499 1,518 1,542 1,608 %13 %
Corporate Retirement Plan Participants1,721 1,696 1,714 1,716 1,712 1,715 1,722 2,072 2,045 2,054 2,069 2,093 2,105 %22 %
Client Activity
New Brokerage Accounts (in thousands) (5)
283 201 1,250 201 206 202 184 14,718 430 626 1,095 1,211 847 (30)%199 %
Client Cash as a Percentage of Client Assets (6)
15.1 %14.3 %14.0 %13.6 %13.0 %12.5 %12.8 %13.4 %12.4 %12.3 %12.2 %11.8 %11.5 %(30) bp(360) bp
Derivative Trades as a Percentage of Total Trades7.0 %10.2 %12.2 %10.6 %13.1 %13.8 %14.5 %20.5 %19.4 %18.9 %17.4 %16.6 %18.5 %190 bp1,150 bp
Mutual Fund and Exchange-Traded Fund
  Net Buys (Sells) (7,8) (in millions of dollars)
Large Capitalization Stock984 (693)(768)(1,254)(2,536)(1,422)(1,360)(935)4,454 3,693 (1,604)3,143 6,447 
Small / Mid Capitalization Stock(954)151 (401)(1,063)(1,476)(441)(497)(753)2,431 2,293 1,841 1,492 1,995 
International(2,116)(2,207)(1,953)(1,580)(773)230 370 168 2,110 4,112 4,330 4,439 4,323 
Specialized333 2,059 1,512 1,020 1,505 906 115 215 1,985 3,777 3,667 5,172 3,536 
Hybrid(4,790)(860)(518)(97)(769)(124)(12)(553)(402)359 407 832 1,133 
Taxable Bond(23,142)1,642 5,469 9,215 7,314 7,680 5,734 5,904 4,825 10,004 10,922 8,418 6,584 
Tax-Free Bond(5,229)(242)805 1,710 1,297 1,648 1,123 861 1,131 2,165 2,679 916 1,653 
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds (7)
(34,382)(3,863)(564)1,768 (147)2,568 757 (2,260)2,832 6,336 5,713 6,273 6,190 
Exchange-Traded Funds (8)
(532)3,713 4,710 6,183 4,709 5,909 4,716 7,167 13,702 20,067 16,529 18,139 19,481 
Money Market Funds(1,233)8,465 4,833 (5,673)(9,039)(5,614)(6,627)(4,021)(5,908)(7,332)(5,248)(4,405)(4,528)
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets (9,10)
317,850 353,018 361,814 373,986 379,521 384,690 392,784 442,119 466,677 482,394 517,306 514,885 520,074 %64 %
Average Bank Deposit Account Balances (10,11)
— — — — — — — 132,030 162,315 163,463 167,980 167,433 164,866 (2)%N/M
(1) February 2021 includes an outflow of $14.4 billion from a mutual fund clearing services client. 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, third-party bank deposit accounts, 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. Percentage changes greater than 200% are presented as not meaningful.
- 9 -

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 first 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 MeasureDefinitionUsefulness to Investors and Uses by Management
Acquisition and integration-related costs and amortization of acquired intangible assetsSchwab 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 is 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 ongoing 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 equityReturn 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.

Beginning in 2021, 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.


- 10 -

THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)
The tables below present reconciliations of GAAP measures to non-GAAP measures:
Three Months Ended March 31,
20212020
Total Expenses Excluding InterestNet IncomeTotal Expenses Excluding InterestNet Income
Total expenses excluding interest (GAAP),
  Net income (GAAP)
$2,755 $1,484 $1,570 $795 
Acquisition and integration-related costs (1)
(119)119 (37)37 
Amortization of acquired intangible assets(154)154 (6)
Income tax effects (2)
N/A(67)N/A(11)
Adjusted total expenses (non-GAAP),
  Adjusted net income (non-GAAP)
$2,482 $1,690 $1,527 $827 
(1) Acquisition and integration-related costs for the three months ended March 31, 2021 primarily consist of $72 million of compensation and benefits, $27 million of professional services, and $16 million of occupancy and equipment. Acquisition and integration-related costs for the three months ended March 31, 2020 primarily consist of $23 million of professional services, $8 million of compensation and benefits, and $4 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.
Three Months Ended March 31,
20212020
Amount% of Total Net RevenuesAmount% of Total Net Revenues
Income before taxes on income (GAAP), Pre-tax
  profit margin (GAAP)
$1,960 41.6 %$1,047 40.0 %
Acquisition and integration-related costs119 2.5 %37 1.5 %
Amortization of acquired intangible assets154 3.3 %0.2 %
Adjusted income before taxes on income (non-GAAP),
  Adjusted pre-tax profit margin (non-GAAP)
$2,233 47.4 %$1,090 41.7 %

Three Months Ended March 31,
20212020
AmountDiluted EPSAmountDiluted EPS
Net income available to common stockholders (GAAP),
  Earnings per common share — diluted (GAAP)
$1,388 $.73 $757 $.58 
Acquisition and integration-related costs119 .06 37 .03 
Amortization of acquired intangible assets154 .08 — 
Income tax effects(67)(.03)(11)— 
Adjusted net income available to common stockholders
  (non-GAAP), Adjusted diluted EPS (non-GAAP)
$1,594 $.84 $789 $.61 

Three Months Ended March 31,
20212020
Return on average common stockholders' equity (GAAP)12 %14 %
Average common stockholders' equity$46,691 $21,215 
Less: Average goodwill(11,952)(1,227)
Less: Average acquired intangible assets — net(9,915)(125)
Plus: Average deferred tax liabilities related to goodwill and acquired intangible assets — net1,935 67 
Average tangible common equity$26,759 $19,930 
Adjusted net income available to common stockholders (1)
$1,594 $789 
Return on tangible common equity (non-GAAP)24 %16 %
(1) See table above for the reconciliation of net income available to common stockholders to adjusted net income available to common stockholders (non-GAAP).

- 11 -

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