Gathered $428 Billion in Annual Core Net New Assets; Added More Than 4 Million New Accounts

2022 Revenues Grew 12% to $20.8 Billion; Earnings per Share Increased to $3.50, $3.90 Adjusted ⁽¹⁾

The Charles Schwab Corporation announced today that its net income for the fourth quarter of 2022 was $2.0 billion, up 25% from $1.6 billion for the fourth quarter 2021. Net income for the twelve months ended December 31, 2022 was a record $7.2 billion, an increase of 23% versus the prior year.

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	Three Months Ended December 31,						%		Twelve Months Ended December 31,						%
Financial Highlights ⁽¹⁾	2022			2021			Change		2022			2021			Change

Net revenues (in millions)	$	5,497		$	4,708		17	%	$	20,762		$	18,520		12	%
Net income (in millions)
GAAP	$	1,968		$	1,580		25	%	$	7,183		$	5,855		23	%
Adjusted ⁽¹⁾	$	2,151		$	1,775		21	%	$	7,934		$	6,670		19	%
Diluted earnings per common share⁽²⁾
GAAP	$	.97		$	.76		28	%	$	3.50		$	2.83		24	%
Adjusted ⁽¹⁾	$	1.07		$	.86		24	%	$	3.90		$	3.25		20	%
Pre-tax profit margin
GAAP		47.3	%		43.0	%				45.2	%		41.6	%
Adjusted ⁽¹⁾		51.6	%		48.4	%				50.0	%		47.5	%
Return on average common stockholders' equity (annualized)		27	%		12	%				18	%		11	%
Return on tangible common equity (annualized) ⁽¹⁾		102	%		24	%				42	%		22	%

⁽¹⁾		Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 11-12 of this release.
⁽²⁾		All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding.

Co-Chairman and CEO Walt Bettinger said, "Our consistent 'Through Clients' Eyes' strategy helped us continue to succeed with clients even as they faced a very difficult environment in 2022. Emerging concerns around inflation and global market stability became reality, with Russia's invasion of Ukraine exacerbating the impact. Equity markets suffered their worst year since 2008, led by the S&P 500^® and NASDAQ Composite^® which contracted 19% and 33%, respectively. At the same time, the Federal Reserve tightened short-term rates at the fastest pace in 40 years – pushing the Fed Funds upper bound to 4.50% in December. Additionally, uncertainty around future economic growth increased during the back half of the year, weighing on longer-term rates and leading to an inverted yield curve. This shift reflected the persistent bearish sentiment amongst investors for most of the year – with certain indicators hitting levels below those observed during the 2008 Financial Crisis."

Mr. Bettinger continued, "Against this challenging backdrop, investors looked to Schwab for help achieving their financial goals. Both of our primary businesses contributed to core net new assets of $428 billion, a full-year organic growth rate of 5%, which included record tax-related outflows in April. Total client assets ended the year at $7.05 trillion, as the company's asset gathering was offset by $1.5 trillion in lower market values over the past 12 months. In addition, we also added over 4 million new brokerage accounts, pushing total accounts to nearly 34 million by December 31. Momentum within the retail channel was particularly strong in 2022, achieving record core inflows during 6 separate months. Similarly, Advisor Services attracted over 350 transitioning advisor teams, the second highest number ever, and recorded a transfer of account ratio of approximately 2-to-1 for the fifth consecutive year."

"Through the relentless efforts of our dedicated employees, we made significant progress on our key strategic initiatives of scale and efficiency, win-win monetization, and segmentation," Mr. Bettinger added. "This work included ongoing preparations for the largest broker-dealer integration in our industry's history – with the first wave of client conversions scheduled to begin next month. Throughout 2022, we also took meaningful steps to further empower investors with more personalization options, increased access to high-quality products, and an evolved suite of tools and solutions. We launched our proprietary direct indexing offering, Schwab Personalized Indexing™(SPI), for both registered investment advisors (RIAs) and retail clients – providing them with tax-efficient, customizable portfolio management capabilities at a much lower cost than existing alternatives in the market. Additionally, we introduced our initial thematic stock lists, which assist self-directed clients in selecting stocks aligned with their personal perspectives and values. The current range of themes spans over 40 different categories, including environmental innovation, artificial intelligence, and medical breakthroughs. We also further bolstered our leading value proposition to RIAs by expanding our institutional no transaction fee mutual fund platform to include over 900 additional equity and bond funds across 16 leading third-party asset managers. Finally, Schwab's wealth management capabilities continued to evolve with the needs of our clients, including a growing interest in fixed income. Client allocations to this asset class increased 66% versus December 2021 as they took advantage of our self-directed tools and income-focused advisory solutions such as Wasmer Schroeder™ Strategies. The Wasmer team's ability to deliver an attractive value proposition across a range of tax-exempt and taxable offers, along with rising interest rates, helped these strategies collect $7.3 billion in net flows since becoming part of Schwab in July 2020 – including $3.5 billion in 2022."

Mr. Bettinger concluded, "Our focus on meeting the needs of individual investors and the advisors who serve them remains steadfast across any environment. This commitment to consistency of mission, service, and experience sets us apart, helping to drive our strong performance and keeping us positioned as one of the most trusted names in financial services. While we are proud of the firm's success thus far, we believe there is tremendous opportunity still ahead of us and we are excited to keep striving to deliver value for all of our key stakeholders – clients, employees, and owners."

CFO Peter Crawford commented, "Schwab's record financial performance in 2022 highlighted the resiliency of our diversified financial model. Sustained business momentum through an uneven macroeconomic environment helped drive 12% growth in total net revenues. Net interest revenue reached $10.7 billion, an increase of 33% versus the prior year, as higher interest rates more than offset the impact of balance sheet contraction due to client cash sorting. Lower market valuations throughout the year pushed asset management and administration fees down slightly to $4.2 billion, or 1% year-over-year. Trading revenue declined by 12% to $3.7 billion as daily average trades subsided from 2021's unprecedented levels to just under 6 million for the full year. Transitioning to expenses, our total GAAP spending grew 5% to $11.4 billion, reflecting client engagement and growth, as well as the 12-month impact of the broad employee salary increase that went into effect at the end of 2021. Acquisition and integration-related costs and amortization of acquired intangibles were $392 million and $596 million, respectively. Exclusive of these items, adjusted total expenses ⁽¹⁾ were up 7% year-over-year. Strong revenue growth and balanced expense management enabled us to deliver a 45.2% pre-tax profit margin for the full year – 50.0% on an adjusted basis ⁽¹⁾."

"Over the course of the year, our approach to balance sheet management prioritized flexibility to help navigate through a dynamic environment," Mr. Crawford added. "As rates rose from the ultra-low levels observed during the most recent period of the Federal Reserve's Zero Interest-rate Policy, clients allocated a growing portion of their assets to higher yielding cash and fixed income alternatives. As a result of this expected sorting activity, the balance sheet shrank by $115 billion, a decline of 17% versus December 31, 2021. To facilitate these movements, we took steps to further bolster liquidity by limiting new portfolio investments to help build available cash and utilizing a limited amount of short-term funding sources such as Federal Home Loan Bank Advances and retail certificates of deposit. At the same time, the combination of Schwab's enhanced earnings power and lower capital intensity enabled us to accelerate the pace of capital return to our owners. Following the authorization of a $15 billion buyback program in July, we have repurchased an aggregate of 47 million shares for $3.4 billion in 2022. During the year, we also redeemed $1 billion of preferred equity and increased our common dividend by 22%. Inclusive of these actions, the company's preliminary Tier 1 Leverage Ratio finished the year at 7.2%, above our stated operating objective of 6.50% – 6.75%."

Mr. Crawford concluded, "Although 2022 unfolded much differently than we and many others anticipated at the start of the year, Schwab's unwavering focus on serving clients, along with our all-weather business model, delivered another year of record financial performance. We believe the core tenets of the company's financial formula remain firmly intact. The combination of strong business momentum, diversified revenue growth, expense discipline, and attentive capital management supports our long-term growth plus capital return story."

⁽¹⁾ Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 11-12 of this release.

Commentary from the CFO

Peter Crawford, Managing Director and Chief Financial Officer, provides additional perspective on our fourth quarter and full-year 2022 financial results at: https://www.aboutschwab.com/cfo-commentary.

Winter Business Update

The company has scheduled a Winter Business Update for institutional investors on Friday, January 27, 2023. The Update is scheduled to run from approximately 8:00 a.m. - 1:00 p.m. CT, 9:00 a.m. - 2p.m. ET. Registration for this Update is accessible at https://www.aboutschwab.com/schwabevents.

Forward-Looking Statements

This press release contains forward-looking statements relating to success with clients; strategic initiatives; TD Ameritrade integration; opportunity; stakeholder value; earnings power; capital needs and management; returning capital to stockholders; Tier 1 Leverage Ratio operating objective; all-weather business model; business momentum; revenue growth; and expense discipline. 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 attract and retain clients and independent investment advisors and grow those relationships and client assets; 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 and retain talent; support client activity levels; successfully implement integration strategies and plans; monetize client assets; and manage expenses. Other important factors include client use of the company's advisory solutions and other products and services; general market conditions, including equity valuations and the level of interest rates; the level and mix of client trading activity; market volatility; margin loan balances; securities lending; competitive pressures on pricing; client cash sorting; client sensitivity to rates; level of client assets, including cash balances; capital and liquidity needs and management; balance sheet positioning relative to changes in interest rates; interest earning asset mix and growth; the migration of bank deposit account balances; and other factors set forth in the company's most recent reports on Form 10-K and Form 10-Q.

About Charles Schwab

The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial services, with 33.8 million active brokerage accounts, 2.4 million corporate retirement plan participants, 1.7 million banking accounts, and $7.05 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.

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

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2022			2021			2022			2021
Net Revenues
Interest revenue	$	3,841		$	2,270		$	12,227		$	8,506
Interest expense		(812	)		(128	)		(1,545	)		(476	)
Net interest revenue		3,029			2,142			10,682			8,030
Asset management and administration fees ⁽¹⁾		1,049			1,110			4,216			4,274
Trading revenue		895			1,017			3,673			4,152
Bank deposit account fees		350			304			1,409			1,315
Other		174			135			782			749
Total net revenues		5,497			4,708			20,762			18,520
Expenses Excluding Interest
Compensation and benefits		1,488			1,399			5,936			5,450
Professional services		266			271			1,032			994
Occupancy and equipment		320			254			1,175			976
Advertising and market development		123			122			419			485
Communications		144			130			588			587
Depreciation and amortization		176			145			652			549
Amortization of acquired intangible assets		136			154			596			615
Regulatory fees and assessments		62			67			262			275
Other		184			143			714			876
Total expenses excluding interest		2,899			2,685			11,374			10,807
Income before taxes on income		2,598			2,023			9,388			7,713
Taxes on income		630			443			2,205			1,858
Net Income		1,968			1,580			7,183			5,855
Preferred stock dividends and other		147			131			548			495
Net Income Available to Common Stockholders	$	1,821		$	1,449		$	6,635		$	5,360
Weighted-Average Common Shares Outstanding:
Basic		1,864			1,892			1,885			1,887
Diluted		1,873			1,902			1,894			1,897
Earnings Per Common Shares Outstanding ⁽²⁾:
Basic	$	.98		$	.77		$	3.52		$	2.84
Diluted	$	.97		$	.76		$	3.50		$	2.83

⁽¹⁾		No fee waivers were recognized for the three months ended December 31, 2022. Includes fee waivers of $57 million for the twelve months ended December 31, 2022, and $80 million and $326 million for the three and twelve months ended months ended December 31, 2021, respectively.
⁽²⁾		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.

THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)
	Q4-22 % change				2022													2021
	vs.		vs.			Fourth			Third			Second			First			Fourth
(In millions, except per share amounts and as noted)	Q4-21		Q3-22			Quarter			Quarter			Quarter			Quarter			Quarter
Net Revenues
Net interest revenue	41	%	4	%		$	3,029		$	2,926		$	2,544		$	2,183		$	2,142
Asset management and administration fees	(5	) %	—				1,049			1,047			1,052			1,068			1,110
Trading revenue	(12	) %	(4	) %			895			930			885			963			1,017
Bank deposit account fees	15	%	(15	) %			350			413			352			294			304
Other	29	%	(5	) %			174			184			260			164			135
Total net revenues	17	%	—				5,497			5,500			5,093			4,672			4,708
Expenses Excluding Interest
Compensation and benefits	6	%	1	%			1,488			1,476			1,426			1,546			1,399
Professional services	(2	) %	1	%			266			264			258			244			271
Occupancy and equipment	26	%	10	%			320			292			294			269			254
Advertising and market development	1	%	38	%			123			89			105			102			122
Communications	11	%	10	%			144			131			169			144			130
Depreciation and amortization	21	%	5	%			176			167			159			150			145
Amortization of acquired intangibles assets	(12	) %	(11	) %			136			152			154			154			154
Regulatory fees and assessments	(7	) %	(5	) %			62			65			67			68			67
Other	29	%	(2	) %			184			187			187			156			143
Total expenses excluding interest	8	%	3	%			2,899			2,823			2,819			2,833			2,685
Income before taxes on income	28	%	(3	) %			2,598			2,677			2,274			1,839			2,023
Taxes on income	42	%	(4	) %			630			657			481			437			443
Net Income	25	%	(3	) %			1,968			2,020			1,793			1,402			1,580
Preferred stock dividends and other	12	%	8	%			147			136			141			124			131
Net Income Available to Common Stockholders	26	%	(3	) %		$	1,821		$	1,884		$	1,652		$	1,278		$	1,449
Earnings per common share ⁽¹⁾:
Basic	27	%	(2	) %		$	.98		$	1.00		$	.87		$	.67		$	.77
Diluted	28	%	(2	) %		$	.97		$	.99		$	.87		$	.67		$	.76
Dividends declared per common share	22	%	—			$	.22		$	.22		$	.20		$	.20		$	.18
Weighted-average common shares outstanding:
Basic	(1	) %	(1	) %			1,864			1,887			1,896			1,894			1,892
Diluted	(2	) %	(1	) %			1,873			1,895			1,904			1,905			1,902
Performance Measures
Pre-tax profit margin							47.3	%		48.7	%		44.6	%		39.4	%		43.0	%
Return on average common stockholders' equity (annualized) ⁽²⁾							27	%		25	%		19	%		12	%		12	%
Financial Condition (at quarter end, in billions)
Cash and cash equivalents	(36	) %	(14	) %		$	40.2		$	46.5		$	64.6		$	91.1		$	63.0
Cash and investments segregated	(20	) %	(2	) %			43.0			44.1			53.5			54.4			53.9
Receivables from brokerage clients — net	(26	) %	(10	) %			66.6			73.9			76.1			84.1			90.6
Available for sale securities ⁽³⁾	(62	) %	(37	) %			147.9			236.5			265.3			272.0			390.1
Held to maturity securities ⁽³⁾	N/M		80	%			173.1			96.3			100.1			105.3			—
Bank loans — net	17	%	—				40.5			40.4			39.6			37.2			34.6
Total assets	(17	) %	(4	) %			551.8			577.6			637.6			681.0			667.3
Bank deposits	(17	) %	(7	) %			366.7			395.7			442.0			465.8			443.8
Payables to brokerage clients	(23	) %	(11	) %			97.4			110.0			114.9			125.3			125.7
Short-term borrowings	N/M		N/M				17.1			0.5			1.4			4.2			4.9
Long-term debt	10	%	—				20.8			20.8			21.1			21.9			18.9
Stockholders' equity	(35	) %	(1	) %			36.6			37.0			44.5			48.1			56.3
Other
Full-time equivalent employees (at quarter end, in thousands)	6	%	—				35.3			35.2			35.2			34.2			33.4
Capital expenditures — purchases of equipment, office facilities, and property, net (in millions)	(51	) %	9	%		$	211		$	193		$	339		$	209		$	431
Expenses excluding interest as a percentage of average client assets (annualized)							0.16	%		0.16	%		0.16	%		0.15	%		0.13	%
Clients' Daily Average Trades (DATs) (in thousands)	(12	) %	(2	) %			5,389			5,523			6,227			6,578			6,102
Number of Trading Days	(2	) %	(2	) %			62.5			64.0			62.0			62.0			63.5
Revenue Per Trade ⁽⁴⁾	2	%	1	%		$	2.66		$	2.63		$	2.29		$	2.36		$	2.62

⁽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.
⁽²⁾		Return on average common stockholders' equity is calculated using net income available to common stockholders divided by average common stockholders' equity.
⁽³⁾		In January and November 2022, the Company transferred a portion of its investment securities designated as available for sale to the held to maturity category, as described in Part I – Item 1 – Note 4 of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022.
⁽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.

THE CHARLES SCHWAB CORPORATION
Net Interest Revenue Information
(In millions, except ratios or as noted)
(Unaudited)
	Three Months Ended December 31,													Twelve Months Ended December 31,
	2022						2021							2022							2021
	Average Balance		Interest Revenue/ Expense		Average Yield/ Rate		Average Balance		Interest Revenue/ Expense			Average Yield/ Rate		Average Balance		Interest Revenue/ Expense			Average Yield/ Rate		Average Balance		Interest Revenue/ Expense			Average Yield/ Rate
Interest-earning assets
Cash and cash equivalents	$	38,067	$	351	3.62	%	$	41,735	$	13		0.11	%	$	57,163	$	812		1.40	%	$	40,325	$	40		0.10	%
Cash and investments segregated		45,096		383	3.33	%		44,027		5		0.05	%		49,430		691		1.38	%		43,942		24		0.05	%
Receivables from brokerage clients		66,663		1,077	6.32	%		86,485		655		2.97	%		75,614		3,321		4.33	%		77,768		2,455		3.11	%
Available for sale securities ^(1,2)		196,577		943	1.90	%		382,776		1,260		1.31	%		260,392		4,139		1.58	%		357,122		4,641		1.30	%
Held to maturity securities ⁽²⁾		146,384		626	1.70	%		—		—		—			112,357		1,688		1.50	%		—		—		—
Bank loans		40,531		366	3.59	%		33,102		172		2.08	%		38,816		1,083		2.79	%		28,789		620		2.15	%
Total interest-earning assets		533,318		3,746	2.77	%		588,125		2,105		1.42	%		593,772		11,734		1.96	%		547,946		7,780		1.41	%
Securities lending revenue				88						163							471							720
Other interest revenue				7						2							22							6
Total interest-earning assets	$	533,318	$	3,841	2.84	%	$	588,125	$	2,270		1.53	%	$	593,772	$	12,227		2.04	%	$	547,946	$	8,506		1.54	%
Funding sources
Bank deposits	$	374,812	$	438	0.46	%	$	409,961	$	14		0.01	%	$	424,168	$	723		0.17	%	$	381,549	$	54		0.01	%
Payables to brokerage clients		87,001		76	0.35	%		99,325		2		0.01	%		97,825		123		0.13	%		91,667		9		0.01	%
Short-term borrowings		11,927		142	4.71	%		4,294		3		0.27	%		4,993		154		3.07	%		3,040		9		0.30	%
Long-term debt		20,837		135	2.59	%		19,124		103		2.14	%		20,714		498		2.40	%		17,704		384		2.17	%
Total interest-bearing liabilities		494,577		791	0.64	%		532,704		122		0.09	%		547,700		1,498		0.27	%		493,960		456		0.09	%
Non-interest-bearing funding sources		38,741						55,421							46,072							53,986
Securities lending expense				20						8							48							24
Other interest expense				1						(2	)						(1	)						(4	)
Total funding sources	$	533,318	$	812	0.60	%	$	588,125	$	128		0.09	%	$	593,772	$	1,545		0.26	%	$	547,946	$	476		0.09	%
Net interest revenue			$	3,029	2.24	%			$	2,142		1.44	%			$	10,682		1.78	%			$	8,030		1.45	%

⁽¹⁾		Amounts have been calculated based on amortized cost.
⁽²⁾		In January and November 2022, the Company transferred a portion of its investment securities designated as available for sale to the held to maturity category, as described in Part I – Item 1 – Note 4 of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022.

THE CHARLES SCHWAB CORPORATION
Asset Management and Administration Fees Information
(In millions, except ratios or as noted)
(Unaudited)
	Three Months Ended December 31,													Twelve Months Ended December 31,
	2022						2021							2022							2021
	Average Client Assets		Revenue		Average Fee		Average Client Assets		Revenue			Average Fee		Average Client Assets		Revenue			Average Fee		Average Client Assets		Revenue			Average Fee
Schwab money market funds before fee waivers	$	243,587	$	159	0.26	%	$	147,035	$	109		0.29	%	$	179,791	$	499		0.28	%	$	155,821	$	457		0.29	%
Fee waivers				—						(80	)						(57	)						(326	)
Schwab money market funds		243,587		159	0.26	%		147,035		29		0.08	%		179,791		442		0.25	%		155,821		131		0.08	%
Schwab equity and bond funds, ETFs, and collective trust funds (CTFs)		421,238		86	0.08	%		462,059		101		0.09	%		433,005		364		0.08	%		423,999		380		0.09	%
Mutual Fund OneSource^® and other no-transaction-fee funds		219,965		149	0.27	%		231,438		184		0.32	%		202,015		602		0.30	%		229,342		724		0.32	%
Other third-party mutual funds and ETFs		659,870		137	0.08	%		928,989		193		0.08	%		768,871		647		0.08	%		898,248		726		0.08	%
Total mutual funds, ETFs, and CTFs⁽¹⁾	$	1,544,660		531	0.14	%	$	1,769,521		507		0.11	%	$	1,583,682		2,055		0.13	%	$	1,707,410		1,961		0.11	%
Advice solutions ⁽¹⁾
Fee-based	$	424,407		445	0.42	%	$	473,443		524		0.44	%	$	441,336		1,854		0.42	%	$	452,503		1,993		0.44	%
Non-fee-based		87,804		—	—			96,374		—		—			89,525		—		—			89,911		—		—
Total advice solutions	$	512,211		445	0.34	%	$	569,817		524		0.36	%	$	530,861		1,854		0.35	%	$	542,414		1,993		0.37	%
Other balance-based fees ⁽²⁾		524,465		58	0.04	%		644,164		64		0.04	%		561,416		244		0.04	%		614,787		259		0.04	%
Other ⁽³⁾				15						15							63							61
Total asset management and administration fees			$	1,049					$	1,110						$	4,216						$	4,274

⁽¹⁾		Advice solutions include managed portfolios, specialized strategies, and customized investment advice such as Schwab Wealth Advisory™, Schwab Managed Portfolios™, 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.
⁽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.

THE CHARLES SCHWAB CORPORATION
Growth in Client Assets and Accounts
(Unaudited)
	Q4-22 % Change				2022													2021
	vs.		vs.			Fourth			Third			Second			First			Fourth
(In billions, at quarter end, except as noted)	Q4-21		Q3-22			Quarter			Quarter			Quarter			Quarter			Quarter
Assets in client accounts
Schwab One^®, certain cash equivalents and bank deposits	(19	) %	(8	) %		$	459.4		$	501.4		$	552.5		$	584.3		$	566.1
Bank deposit account balances	(20	) %	(9	) %			126.6			139.6			155.6			154.8			158.5
Proprietary mutual funds (Schwab Funds^® and Laudus Funds^®) and CTFs
Money market funds ⁽¹⁾	90	%	32	%			278.9			211.1			159.2			143.1			146.5
Equity and bond funds and CTFs ⁽²⁾	(16	) %	9	%			153.6			141.5			149.5			175.8			183.1
Total proprietary mutual funds and CTFs	31	%	23	%			432.5			352.6			308.7			318.9			329.6
Mutual Fund Marketplace^{® (3)}
Mutual Fund OneSource^® and other no-transaction-fee funds	—		30	%			235.7			181.5			196.6			235.5			234.9
Mutual fund clearing services	(25	) %	9	%			191.1			175.3			184.4			235.4			254.2
Other third-party mutual funds ⁽⁴⁾	(28	) %	(3	) %			1,077.1			1,105.7			1,189.4			1,383.3			1,497.7
Total Mutual Fund Marketplace	(24	) %	3	%			1,503.9			1,462.5			1,570.4			1,854.2			1,986.8
Total mutual fund assets	(16	) %	7	%			1,936.4			1,815.1			1,879.1			2,173.1			2,316.4
Exchange-traded funds (ETFs)
Proprietary ETFs ⁽²⁾	(5	) %	12	%			259.3			232.2			237.7			268.5			271.8
Other third-party ETFs	(7	) %	10	%			1,208.4			1,094.6			1,129.0			1,270.6			1,296.4
Total ETF assets	(6	) %	11	%			1,467.7			1,326.8			1,366.7			1,539.1			1,568.2
Equity and other securities	(22	) %	3	%			2,529.4			2,451.3			2,548.5			3,131.1			3,259.8
Fixed income securities	66	%	23	%			593.4			481.5			403.5			360.7			356.4
Margin loans outstanding	(28	) %	(12	) %			(63.1	)		(71.5	)		(73.4	)		(81.0	)		(87.4	)
Total client assets	(13	) %	6	%		$	7,049.8		$	6,644.2		$	6,832.5		$	7,862.1		$	8,138.0
Client assets by business
Investor Services	(16	) %	5	%		$	3,682.1		$	3,508.1		$	3,598.7		$	4,235.5		$	4,400.7
Advisor Services	(10	) %	7	%			3,367.7			3,136.1			3,233.8			3,626.6			3,737.3
Total client assets	(13	) %	6	%		$	7,049.8		$	6,644.2		$	6,832.5		$	7,862.1		$	8,138.0
Net growth in assets in client accounts (for the quarter ended)

Schwab Reports Record Full-year Earnings Per Share