The Charles Schwab Corporation is one of the nation’s leading providers of financial services. Through our operating subsidiaries, we provide securities brokerage, banking, money management, and financial advisory services to individual investors, independent investment advisors, and corporate and retirement plan sponsors and participants.
The Charles Schwab Corporation is financially strong, and we are committed to our continued financial health. Our capital structure and liquidity are sound, and our internal controls and business standards are designed to keep client assets safe. We maintain a disciplined focus on risk management and operate the firm conservatively to minimize investment risks. We know that our success ultimately depends on how well we serve all our clients and their confidence in us.
Key financial data as of Dec. 31, 2011
For The Charles Schwab Corporation:
- $7.7 billion in equity capital1
- Approximately $929 million of freely available cash2
- Long-term debt-to-equity ratio of 25.9%1
- Net income of $864 million over the last 12 months3
- $1.68 trillion in client assets4
- $145.9 billion in net new assets (reported total over the last 12 months).4 Includes inflows of 56.1 billion and $7.5 billion in 2011 from a mutual fund clearing services client and the acquisition of optionsXpress, respectively.
- Strong credit ratings from Moody's (A2), S&P (A) and Fitch (A)5
- A diversified investment portfolio6
- The Corporation maintains an $800 million committed, unsecured credit facility.5 Additionally, the Corporation has direct access to $750 million in uncommitted, unsecured bank credit lines.7
While The Charles Schwab Corporation is not subject to specific statutory capital requirements, it is required to maintain capital that is sufficient to support the holding company and its subsidiaries’ business activities. Charles Schwab Bank is subject to specific capital requirements specified by federal banking laws and regulations. Charles Schwab Bank is considered well capitalized (the highest category) with a Tier 1 Risk-Based Capital Ratio of 23.4%, a Total Risk-Based Capital Ratio of 23.7%, and a Tier 1 Core Capital Ratio of 7.5%.8
For Charles Schwab & Co., Inc. (the brokerage subsidiary of The Charles Schwab Corporation):
- Net capital of $1.2 billion (10% of aggregate debit balances), which was $948 million in excess of its minimum required net capital.7
For Charles Schwab Bank (the banking subsidiary of The Charles Schwab Corporation):
- $66.1 billion in assets, including $9.1 billion in outstanding mortgages and home equity lines of credit (HELOCs).9
- Strong credit quality of the bank's portfolio of mortgages and HELOCs, with credit scores and loan-to-value ratios significantly better than industry averages, reflecting our solid underwriting discipline.10
- Payment delinquencies representing a very small fraction of outstanding loan balances (approximately 0.81%)11 for mortgages and HELOCs combined, Rest of Market delinquency rates as of December 2011 were 12.14% for mortgages and 4.84% for HELOCs.10
- High-quality investment portfolio with no subprime securities or collateralized debt obligations (CDOs).
Our Commitment to Our Clients
Ongoing developments in the market highlight the importance of choosing wisely among financial services firms. That’s just one of the reasons our clients should continue to feel good about doing business with Schwab. We are highly focused on maintaining our financial health. We deeply appreciate and value the trust our clients have placed in us and look forward to continuing to help them achieve their financial goals.
Financial results and more information about The Charles Schwab Corporation’s business and financial condition can be viewed at any time at www.aboutschwab.com.
DISCLOSURES:
1 Consolidated Balance Sheet, The Charles Schwab Corporation Annual Report on Form 10-K for the Year Ended December 31, 2011, p.49
2 Condensed Balance Sheet, The Charles Schwab Corporation Annual Report on Form 10-K for the Year Ended December 31, 2011, p.88
3 Consolidated Statements of Income, The Charles Schwab Corporation Annual Report on Form 10-K for the Year Ended December 31, 2011, p.48
4 Management’s Discussion and Analysis of Financial Condition and Results of Operations, The Charles Schwab Corporation Annual Report on Form 10-K for the Year Ended December 31, 2011, p.17.
5 Management’s Discussion and Analysis of Financial Condition and Results of Operations, The Charles Schwab Corporation Annual Report on Form 10-K for the Year Ended December 31, 2011, p.30.
6 The Charles Schwab Corporation Annual Report on Form 10-K for the Year Ended December 31, 2011, pp.59-62.
7 Management’s Discussion and Analysis of Financial Condition and Results of Operations, The Charles Schwab Corporation Annual Report on Form 10-K for the Year Ended December 31, 2011, p.31.
8 Management’s Discussion and Analysis of Financial Condition and Results of Operations, The Charles Schwab Corporation Annual Report on Form 10-K for the Year Ended December 31, 2011, p.32.
9 Quarterly earnings press release for the period ended December 31, 2011, p.2
10 Rest of Market data is from CoreLogic Loan Performance Prime Mortgage Servicing TrueStandings Database, which consists of data contributed by many top servicers including Fannie Mae and Freddie Mac (GSEs). It is estimated to cover 85 percent of the overall Prime Mortgage Market.
11 Management’s Discussion and Analysis of Financial Condition and Results of Operations, The Charles Schwab Corporation Annual Report on Form 10-K for the Year Ended December 31, 2011, p.38
Charles Schwab & Co., Inc. and Charles Schwab Bank are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products offered by Charles Schwab & Co., Inc., Member SIPC, are not insured by the FDIC, are not deposits or obligations of Charles Schwab Bank, and are subject to investment risk, including the possible loss of principal invested. Deposit and lending products and services are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender.
optionsXpress, Inc. (Member SIPC) and Charles Schwab & Co., Inc. (Member SIPC) are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.
