The Charles Schwab Corporation Reports Monthly Activity Highlights; Net New Assets Total $7.6 Billion
16 November 2005 - 12:45AM
PR Newswire (US)
SAN FRANCISCO, Nov. 15 /PRNewswire-FirstCall/ -- The Charles Schwab
Corporation (NYSE / Nasdaq: SCH) released its Monthly Market
Activity Report today. Company highlights for the month of October
2005 include: -- Net new assets brought to the Company by new and
current clients in October 2005 totaled $7.6 billion. -- Total
client assets were $1.152 trillion as of month-end October, up 13%
from October 2004 and down 1% from September 2005. In comparison,
the Schwab 1000 Index(R) was up 8% from October 2004 and down 2%
from September 2005. -- Client daily average trades, which include
daily average revenue trades (DART), Schwab Institutional(R)
asset-based trades and Schwab Private Client(TM) asset-based
trades, were 258.9 thousand in October 2005, up 52% from October
2004 and up 10% from September 2005. CFO Chris Dodds commented,
"Client fundamentals were strong again in October -- net new assets
topped $6 billion for the fifth consecutive month and exceeded last
October's total by 95%. As previously disclosed in September, we
are pursuing two growth investments to enhance the Company's
business momentum -- the elimination of certain fees and a new
national advertising campaign -- which are expected to impact
fourth quarter earnings by approximately $40 million pre-tax. In
light of these investments, combined with approximately $10 million
of pre-tax severance charges relating to staffing reductions at
U.S. Trust, we currently estimate that fourth quarter earnings per
share will be approximately $0.02 lower than our third quarter 2005
results." This press release contains forward-looking statements
relating to the Company's fourth quarter 2005 earnings that reflect
management's current expectations. 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, a significant discrepancy between
estimated and actual revenues associated with the Company's account
service and order handling fees, material changes in the extent
and/or duration of the Company's advertising campaign, and the
final amount of severance associated with fourth quarter staff
reductions at U.S. Trust. The Charles Schwab Corporation, through
its operating subsidiaries, provides securities brokerage and
financial services to individual investors and the independent
investment advisors who work with them. With over 7 million
individual investor accounts and more than $1 trillion in client
assets, The Charles Schwab Corporation is one of the nation's
largest financial services firms. Its subsidiary Charles Schwab
& Co., Inc. (member SIPC) provides a complete range of
investment services and products, including an extensive selection
of mutual funds; financial planning and investment advice;
retirement plans; referrals to independent fee-based investment
advisors; and custodial, operational and trading support for
independent fee-based investment advisors. Its subsidiary Charles
Schwab Bank, N.A. (member FDIC) provides banking and mortgage
services and products. The corporation's other operating
subsidiaries include U.S. Trust Corporation (member FDIC) and
CyberTrader(R), Inc. (member SIPC). These companies' Web sites can
be reached at http://www.schwab.com/, http://www.schwabbank.com/,
http://www.ustrust.com/, and http://www.cybertrader.com/.
DATASOURCE: Charles Schwab CONTACT: media, Glen Mathison,
+1-415-636-5448, or investors/analysts, Rich Fowler,
+1-415-636-9869, both of Charles Schwab Web site:
http://www.schwab.com/
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