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SCHWAB REPORTS THIRD QUARTER RESULTS

 SCHWAB REPORTS THIRD QUARTER RESULTS
 SAN FRANCISCO, Oct. 13 /PRNewswire/ -- The Charles Schwab Corp.


(NYSE: SCH; PSE) reported net income of $7.8 million, or 20 cents per share, for the quarter ended Sept. 30, 1992, compared with net income of $13.2 million, or 34 cents per share, for the third quarter in 1991. For the nine months ended Sept. 30, 1992, the company earned $56 million, or $1.43 per share, on net revenues of $556 million, compared with net income of $33.4 million, or 85 cents per share, on net revenues of $402.4 million during the same period last year.
 CHARLES SCHWAB CORP.
 Financial Highlights Three Months Nine Months
 (in millions, except Ended Sept. 30 Ended Sept. 30
 per share amounts) 1992 1991 1992 1991
 Total revenues $196.8 $202.3 $680.9 $572.1
 Net revenues 159.3 147.4 556.0 402.4
 Expenses excluding interest 144.3 122.9 455.1 342.9
 Income before taxes 15.0 24.5 100.9 59.5
 Net income 7.80 13.2 56.0 33.4
 Net income per share 0.20 0.34 1.43 0.85
 Weighted average shares
 outstanding 38.8 39.2 39.2 39.0
 Net revenues for 1992's third quarter increased 8 percent over 1991's third quarter to $159.3 million, principally due to higher commission and principal transaction revenues.
 Expenses excluding interest were $144.3 million for the third quarter of 1992, up 17 percent from 1991's level. The increase resulted from higher expenditures to support the company's expansion in its branch office and customer telephone service center network, the growth in technology and marketing programs, and the development of new products and services.
 "While individual investors are more cautious than we've seen in at least two years, they continued to bring Schwab new accounts and customer assets at a rate of over $1 billion per month during the third quarter," said Chairman Charles R. Schwab. "Our focus on customer service-generated growth in new accounts and assets of more than 37 percent over last year's comparable period -- an impressive rate in any market environment and a vital measure of our long-term growth potential. We added 127,000 new accounts during the third quarter, 43 percent over the comparable period last year, and net assets in customer accounts reached a record $58 billion by Sept. 30, 1992.
 "So far in 1992, the company has opened 15 branch offices, introduced a No-Fee IRA account and a No Transaction Fee (NTF) Mutual Fund Service covering over 80 mutual funds. Since its introduction, the NTF Mutual Fund offering has attracted $537 million in customer assets by quarter-end. Schwab also formed a new Trust Company subsidiary, added a new money market fund and two new bond funds, and introduced the industry's first dividend reinvestment service available on all domestic stocks, including over 3,500 exchange-listed and Nasdaq stocks."
 The Charles Schwab Corp., through its principal operating subsidiary, Charles Schwab & Co. Inc., provides brokerage and related investment services to 1.9 million active investor accounts through 173 offices nationwide.
 THE CHARLES SCHWAB CORP.
 CONSOLIDATED STATEMENT OF INCOME
 (In millions, except per share amounts)
 Three Months Nine Months
 Ended Ended
 Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Revenues
 Commissions $ 88.5 $ 84.2 $327.0 $254.2
 Interest 60.1 75.3 192.9 229.9
 Principal transactions 27.5 23.2 98.9 25.3
 Mutual fund service fees 16.4 13.6 44.9 41.0
 Other 4.3 6.0 17.2 21.7
 Total revenues 196.8 202.3 680.9 572.1
 Interest expense 37.5 54.9 124.9 169.7
 Net revenues 159.3 147.4 556.0 402.4
 Expenses Excluding Interest
 Compensation and benefits 68.6 60.7 231.5 166.5
 Communications 18.0 14.3 56.6 40.8
 Depreciation and amortization 9.4 13.0 31.5 38.6
 Occupancy and equipment 17.1 13.0 48.6 37.0
 Advertising & market development 10.6 5.2 27.8 16.1
 Commissions, clearance and floor
 brokerage 6.7 6.2 23.8 13.7
 Professional services 3.5 2.5 10.0 9.3
 Other 10.4 8.0 25.3 20.9
 Total exp. excluding interest 144.3 122.9 455.1 342.9
 Interest before taxes on income 15.0 24.5 100.9 59.5
 Taxes on income 7.2 11.3 44.9 26.1
 Net income $ 7.8 $ 13.2 $ 56.0 $ 33.4
 Weighted average number of common
 and common equivalent shares 38.8 39.2 39.20 39.0
 Earnings per Common
 Equivalent Share $ 0.20 $ 0.34 $ 1.43 $0.85
 Dividends Declared per
 Common Share $ 0.060 $ 0.033 $ 0.160 0.087
 Certain 1991 revenues and expenses have been reclassified to conform with the 1992 presentation.
 THE CHARLES SCHWAB CORPORATION SELECTED STATISTICAL INFORMATION

 Three Months Nine Months
 Ended Ended
 Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Operating Statistics (A)
 Average daily trades (B) 18,800 17,000 22,800 17,900
 Average daily no-transaction-
 fee mutual fund trades (C) 1,500 300 900 300
 Average daily trading activity 20,300 17,300 23,700 18,200
 Tot. no. of trades (thousands) 1,301 1,108 4,499 3,436
 Av. commission per agency trade $74.11 $77.86 $75.93 $75.60
 Number of customer accounts that
 traded (in thousands) 430 357 905 698
 Customer accounts opened during
 the period (in thousands) 127 89 401 285
 As of Sept. 30,
 1992 1991
 Financial Condition
 Total assets (in billions) $ 5.50 $ 4.80
 Stockholders' equity (in millions) $ 236.00 $182.00
 Book value per common share (D) $ 6.22 $ 4.74
 Customer Statistics (A)
 Assets in customer accounts (billions)
 Cash and equivalents:
 -- Schwab money market funds $ 10.00 $ 8.00
 -- Schwab One(R) cash balances 4.30 3.90
 -- Other cash equivalents 0.50 0.40
 Net securities:
 -- Schwab 1000 Fund(TM) 0.30 0.10
 -- Schwab bond funds 0.30 ---
 -- Mutual Fund Marketplace(R) (E) 9.20 5.00
 -- Fixed income securities
 (excludes mutual funds) 7.80 6.00
 -- Equity and other securities
 (excludes mutual funds) 27.40 20.00
 -- Margin loans outstanding (1.70) (1.10)
 Total assets in customer accounts $ 58.10 $ 42.30
 (A) Statistics presented are for Charles Schwab & Co. Inc. (Schwab); operations of other subsidiaries are excluded.
 (B) Includes all trades that generate either commission revenue or revenue from principal markups.
 (C) Includes trades that do not generate either commission revenue or revenue from principal markups, primarily trades executed under Schwab's No Transaction Fee Mutual Fund Program.
 (D) The company repurchased 769,000 shares of its common stock during the first nine months of 1992, and 365,000 shares during the first nine months of 1991.
 (E) Excludes money market funds and all of Schwab's proprietary money market, equity and bond mutual funds. Balances include equity funds of $5.6 billion and fixed income funds of $3.6 billion at Sept. 30, 1992 and $3.3 billion and $1.7 billion, respectively, at Sept. 30, 1991.
 -0- 10/13/92
 /CONTACT: Hugo W. Quackenbush, CFA, or Mark C. Thompson of Charles Schwab, 415-627-7810/
 (SCH) CO: Charles Schwab Corp.; Charles Schwab & Co. Inc. ST: California IN: FIN SU: ERN


TM-GT -- SF010 -- 9544 10/13/92 17:11 EDT
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