Schwab Authorizes $15 Billion Stock Repurchase, Declares 10% Increase in Quarterly Common Stock Dividend, and Declares Preferred Stock Dividends

The Board of Directors of The Charles Schwab Corporation at its meeting today authorized additional repurchases of the company’s common stock and declared a 2 cent, or 10% increase in the quarterly cash dividend to $0.22 per common share. The dividend is payable August 26, 2022 to stockholders of record as of the close of business on August 12, 2022.

The Share Repurchase Program previously had $1.8 billion of share repurchases remaining under a prior authorization. The Board’s decision today has replaced this authorization with approval to repurchase a total of $15 billion of its common stock. Shares may be repurchased through open market or privately negotiated transactions based on prevailing market conditions. For the quarter ended June 30, 2022 the company had 1.904 billion weighted-average common and common equivalent shares outstanding.

Chairman Charles Schwab commented, “The Board’s decisions regarding the Share Repurchase Program and common stock dividend increase reflect Schwab’s recent financial performance as well as our confidence in the long-term prospects of the company. We see these actions as part of an overall evolution of the Schwab story to include both strong business growth and significant capital return.”

In addition, the Board of Directors also declared dividends on the following series of outstanding preferred stock, payable September 1, 2022 to stockholders of record as of the close of business on August 17, 2022:

CFO Peter Crawford added, “The combination of our strong balance sheet, expanding earnings power, and increased capital levels creates an opportunity for significant capital return beginning as soon as later this year. While there is no set timeline for the repurchase activity, growth of the business remains our primary focus and we intend to execute this authorization as we generate surplus capital.”

Forward-Looking Statements

This press release contains forward-looking statements relating to business growth; returns to stockholders; earnings; capital levels; and surplus capital. These forward-looking statements reflect management’s expectations as of the date hereof. Achievement of these expectations and objectives 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, the company’s ability to attract and retain clients and independent investment advisors and grow those relationships and client assets; develop and launch new and enhanced products, services, and capabilities, as well as enhance its infrastructure and capacity, in a timely and successful manner; hire and retain talent; support client activity levels; successfully implement integration strategies and plans; manage expenses; and monetize client assets. Other important factors include client use of the company’s advisory solutions and other products and services; general market conditions, including equity valuations and the level of interest rates; the level and mix of client trading activity; market volatility; margin loan balances; securities lending; client cash sorting; client sensitivity to rates; level of client assets, including cash balances; capital and liquidity needs and management; balance sheet positioning relative to changes in interest rates; interest earning asset mix and growth; the migration of bank deposit account balances; and other factors set forth in the company’s most recent reports on Form 10-K and Form 10-Q.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 33.9 million active brokerage accounts, 2.3 million corporate retirement plan participants, 1.7 million banking accounts, and $6.83 trillion in client assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiaries, Charles Schwab & Co., Inc., TD Ameritrade, Inc., and TD Ameritrade Clearing, Inc., (members SIPC, www.sipc.org), and their 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 Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at www.aboutschwab.com.

TD Ameritrade, Inc. and TD Ameritrade Clearing, Inc. are separate but affiliated companies and subsidiaries of TD Ameritrade Holding Corporation. TD Ameritrade Holding Corporation is a wholly owned subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto Dominion Bank.

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