SCHWAB CHARLES CORP Quarterly Report for Q1 Ended Mar 31, 2014

Summary

The Charles Schwab Corporation reported strong financial performance for the quarter ended March 31, 2014, with net revenues increasing 15% year-over-year to $1.48 billion and net income rising 58% to $326 million. This growth was driven by robust increases in asset management and administration fees, net interest revenue, and trading revenue, reflecting continued client asset growth and higher market activity. The company maintained its efficiency with expenses excluding interest remaining flat year-over-year. Diluted Earnings Per Share (EPS) improved significantly to $0.24 from $0.15 in the prior year quarter. Client engagement remains strong, with total client assets growing 11% to $2.31 trillion and new brokerage accounts increasing by 6%. The company's balance sheet remains solid, with total assets at $144 billion and total liabilities of $133 billion, resulting in total stockholders' equity of $10.8 billion. Both Schwab Bank and its principal broker-dealers remain well-capitalized and in compliance with regulatory requirements, indicating a stable financial position.

Key Highlights

• 1Net revenues increased by 15% year-over-year to $1.48 billion.
• 2Net income saw a substantial increase of 58% year-over-year, reaching $326 million.
• 3Diluted Earnings Per Share (EPS) grew to $0.24, a 60% increase from $0.15 in the prior year quarter.
• 4Total client assets grew by 11% year-over-year to $2.31 trillion, indicating strong client engagement.
• 5Expenses excluding interest remained flat year-over-year, demonstrating effective cost management.
• 6The company's banking and brokerage subsidiaries are well-capitalized and meet all regulatory requirements.
• 7Asset management and administration fees increased by 11%, driven by growth in advice solutions and mutual fund services.

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