Schwab Reports Monthly Activity Highlights by EON

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									Schwab Reports Monthly Activity Highlights
September 15, 2010 08:48 AM Eastern Daylight Time  

SAN FRANCISCO--(EON: Enhanced Online News)--The Charles Schwab Corporation released its Monthly
Market Activity Report today. Company highlights for the month of August 2010 include:

    l   Net new assets entering the company by new and existing clients in August 2010 totaled $4.2 billion. 
    l   Total client assets were $1.394 trillion as of month-end August, up 6% from August 2009 and down 2% from
        July 2010.
    l   Client daily average trades were 346.7 thousand in August 2010, down 16% from August 2009 and down 
        5% from July 2010.

CFO Joe Martinetto commented, “Our ongoing focus on building stronger relationships continues to resonate with
our clients and helped to sustain growth in our business even in August, when client trading and asset flows slowed in
keeping with vacation season and signs of a potential pause in the economic recovery. We currently expect that the
company’s third quarter earnings will be comparable to the $205 million we earned in the second quarter, prior to
including the effect of two recent developments. First, we expect that our third quarter results will include a pre-tax
charge of approximately $20 million relating to our Invest First and WorldPoints Visa credit cards, as we are ending
our sponsorship due to challenging card industry economics. Additionally, the company has chosen to cover all
losses recognized by Schwab money market mutual funds as a result of their investments in a single structured
investment vehicle that defaulted in 2008. Our third quarter results will include a pre-tax charge of approximately
$130 million in connection with this action. Our clients currently hold $154 billion in money fund balances at
Schwab.” 

Mr. Martinetto concluded, “With interest rates and equity market valuations remaining at or above their year-to-date
lows, our operating performance continues to recover. We expect that third quarter revenues will show a year-over-
year increase for the first time since the second quarter of 2008, and we are poised to resume sequential
improvement in revenues and earnings as soon as interest rates and equity valuations stabilize or improve.” 

The SMART report can be viewed with its accompanying 12-month data at
www.aboutschwab.com/investor/financials/financial_reports.html.

This press release contains forward looking statements relating to the company’s expected third quarter financial
results, including earnings, revenues and pre-tax charges, and the company's improving financial performance. 
Achievement of these expectations 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, general market conditions, including the level of interest rates, equity valuations and trading activity; the
company’s ability to attract and retain clients and grow client assets/relationships; the impact of changes in market
conditions on money market fund fee waivers, revenue, expenses and pre-tax margins; competitive pressures on
rates and fees; the level of client assets, including cash balances; unanticipated adverse developments in litigation or
regulatory matters and the extent of any charges associated with legal matters, including the outcome of ongoing
discussions with state and federal regulators and FINRA regarding the Schwab YieldPlus Fund; the unknown costs
of complying with new regulations emerging from recent financial reform legislation; and other factors set forth in the
company’s Form 10-Q for the period ending June 30, 2010.

About Charles Schwab

The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial services, with more than
300 offices and 7.9 million client brokerage accounts, 1.5 million corporate retirement plan participants, 
824,000 banking accounts, and $1.4 trillion in client assets. Through its operating subsidiaries, the company provides
a full range of securities brokerage, banking, money management and financial advisory services to individual
investors and independent investment advisors. Named Highest in Investor Satisfaction by J.D. Power and
Associates, its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, http://www.sipc.org), and
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 its Advisor Services division. Its banking subsidiary, Charles Schwab Bank
(member FDIC and an Equal Housing Lender), provides banking and mortgage services and products. More
information is available at www.schwab.com.

Contacts
Charles Schwab
Greg Gable, 415-667-0473 (Media)
Rich Fowler, 415-667-1841 (Investors/Analysts)

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