The Charles Schwab Corporation (CSC) is a savings and loan holding company offering wealth management, securities brokerage, banking, asset management, custody, and financial advisory services through its subsidiaries. As of December 31, 2023, Schwab had $8.52 trillion in client assets, 34.8 million active brokerage accounts, 5.2 million workplace plan participant accounts, and 1.8 million banking accounts. Key subsidiaries include Charles Schwab & Co., Inc. (CS&Co), TD Ameritrade, Inc., TD Ameritrade Clearing, Inc. (TDAC), Charles Schwab Bank, SSB (CSB), and Charles Schwab Investment Management, Inc. (CSIM). Schwab operates through two segments: Investor Services and Advisor Services.

Investor Services provides brokerage, investment advisory, banking, and trust services to individual investors, along with retirement plan services and corporate brokerage services to businesses and their employees. Advisor Services offers custodial, trading, banking and trust, and support services, as well as retirement business services, to independent registered investment advisors (RIAs), independent retirement advisors, and recordkeepers.

Schwab's competitive advantages include its scale, operating efficiency, integrated service offering, brand reputation, service culture, and willingness to disrupt traditional industry practices. The company's strategy, "Through Clients' Eyes," prioritizes client needs and aims to deliver a superior investing experience.

• Employees: Approximately 33,000 (as of December 31, 2023)
• Geographic Footprint: Operates in 48 states and the District of Columbia, as well as Puerto Rico, the United Kingdom, Hong Kong, and Singapore.
• Headquarters: Westlake, Texas (since January 1, 2021)
• Founded: 1971 (CS&Co)
• Number of locations/facilities: Over 380 domestic branch offices.
• Revenue: $18.8 billion (FY2023)
• Client Assets: $8.52 trillion (as of December 31, 2023)
• Key Subsidiaries/Brands: Charles Schwab & Co., Inc., TD Ameritrade, Charles Schwab Bank, Charles Schwab Investment Management

• Co-Chairman of the Board: Charles R. Schwab
• Co-Chairman of the Board and Chief Executive Officer: Walter W. Bettinger II
• President: Richard A. Wurster
• Managing Director and Chief Financial Officer: Peter B. Crawford
• Managing Director and Chief Operating Officer: Joseph R. Martinetto
• Managing Director, General Counsel and Corporate Secretary: Peter J. Morgan III
• Managing Director and Chief Risk Officer: Nigel J. Murtagh
• Managing Director and Head of Advisor Services: Bernard J. Clark
• Managing Director and Head of Investor Services and Marketing: Jonathan M. Craig

• Annual Revenue: $18.8 billion (FY2023)
• Net Income: $5.1 billion (FY2023)
• Total Assets: $493.2 billion (FY2023)
• Key Financial Highlights (FY2023): Net revenue decreased 9% year-over-year, net income decreased 29%, and diluted EPS was $2.54.

Schwab offers a wide range of financial products and services, including:

• Brokerage: Brokerage accounts with equity and fixed income trading, margin lending, options trading, futures and forex trading, and cash management capabilities.
• Mutual Funds: Third-party and proprietary mutual funds, including no-transaction-fee (NTF) funds.
• Exchange-Traded Funds (ETFs): Proprietary and third-party ETFs.
• Advice Solutions: Managed portfolios, personalized advice, specialized planning, and full-time portfolio management.
• Banking: Checking and savings accounts, mortgages, home equity lines of credit (HELOCs), and pledged asset lines (PALs).
• Trust: Trust custody, personal trust reporting, and administrative trustee services.

Schwab also offers specialized services such as Schwab Trading Powered by Ameritrade, Schwab Equity Ratings, and Schwab Stock Slices.

Schwab operates through two primary business segments: Investor Services and Advisor Services.

• Investor Services: Serves individual investors and provides retail brokerage, investment advisory, banking, and trust services. It also offers retirement plan services and other corporate brokerage services to businesses and their employees.
• Advisor Services: Serves independent registered investment advisors (RIAs) and provides custodial, trading, banking and trust, and support services, as well as retirement business services.

Financial information for the segments is available in Note 24 to the Consolidated Financial Statements.

Schwab's business strategy centers around its "Through Clients' Eyes" approach, which prioritizes understanding and meeting client needs. This strategy focuses on delivering a better investing experience by challenging traditional industry practices and providing superior service. Schwab aims to offer a broad range of products and solutions with a focus on transparency, value, and trust.

Key strategic initiatives include enhancing the client experience, providing deeper resources for individual investors and RIAs, and improving operating efficiency. Schwab leverages its scale and resources while maintaining expense discipline to offer affordable products and solutions.

Schwab operates in the highly competitive financial services industry, competing with brokerage firms, wealth management firms, asset management firms, banks, trust companies, financial technology companies, retirement service providers, institutional custodians, wirehouses, regional and independent broker-dealers.

Key market trends affecting the business include evolving client needs and expectations, advancements in technology, and changes in the regulatory landscape.

• Economic and Market Conditions: Schwab's business is sensitive to changes in the economic, market, and geopolitical environment, including interest rates, equity market valuations, and investor sentiment.
• Client Cash Allocation: Changes in client cash allocations, particularly shifts away from sweep products, can impact Schwab's revenue and income.
• Interest Rate Risk: Significant changes in interest rates can affect Schwab's profitability, particularly its net interest revenue and bank deposit account fee revenue.
• Competition: The financial services industry is highly competitive, and Schwab faces pressure from various competitors, including traditional brokerage firms, banks, and fintech companies.
• Cybersecurity Risk: Schwab is exposed to cybersecurity risks, including unauthorized access, data breaches, and system disruptions, which could result in financial losses, reputational damage, and regulatory scrutiny.