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SCHWAB REPORTS RECORD FIRST QUARTER RESULTS

 SCHWAB REPORTS RECORD FIRST QUARTER RESULTS
 SAN FRANCISCO, April 14 /PRNewswire/ -- The Charles Schwab Corp.


(NYSE: SCH) reported record quarterly net income of $29.7 million or $.75 per share for the quarter ended March 31, 1992, compared with net income of $10.6 million or $.27 per share for the same period in 1991.
 Financial Highlights Three Months Ended
 (in millions, except March 31,
 per share amounts) 1992 1991
 Total revenues $265.0 $186.2
 Net revenues 219.9 126.1
 Expenses excluding interest 167.0 107.7
 Income before taxes 52.9 18.4
 Net income 29.7 10.6
 Net income per share .75 .27
 Weighted average shares outstanding 39.4 38.9
 Net revenues for 1992's first quarter increased 74 percent over 1991's first quarter to a record $219.9 million. Commission revenues for Charles Schwab & Co. Inc. (Schwab) were $137.3 million, up 62 percent over last year, as average daily trading activity increased 47 percent to 27,900 trades per day from 18,900 in 1991. Principal trading revenues increased substantially in 1992's first quarter over 1991's level, primarily due to the contribution of Mayer & Schweitzer Inc. (M&S), a market maker in over-the-counter securities which the company acquired in July 1991.
 Expenses excluding interest were $167 million for the first quarter of 1992, up 55 percent from 1991. The increase resulted from higher variable compensation reflecting greater profitability and growth in Schwab client assets, increased expenditures to support the company's expansion of its branch office network, product development, technology and marketing programs, and the addition of M&S operating expenses.
 "The company achieved record earnings and revenues in the first quarter of 1992, and assets in client accounts grew more than 40 percent over the year ago level to a record $51 billion," said Chairman Charles R. Schwab. "During the past twelve months, assets transferred to Schwab from other brokerage firms reached a record $4.2 billion and our active accounts reached a record 1.7 million."
 Average daily trading volume during January and February was Schwab's highest ever, reaching 32,300 and 28,100, respectively. Volume in March 1992 was 23,200 average trades per day, compared with 20,800 trades in March 1991.
 "During the year-to-date, we have increased the quarterly cash dividend 50 percent (payable in May), opened the first four of twenty new offices planned for 1992, added the new Schwab California Tax-Free Bond Fund, and introduced our new no annual fee account for IRAs of $10,000 or more," Schwab said.
 THE CHARLES SCHWAB CORP.
 Consolidated Statement of Income
 (In millions, except per share amounts)
 Three Months
 Ended
 March 31,
 1992 1991
 Revenues
 Commissions $137.3 $ 84.8
 Interest 66.8 79.4
 Principal transactions 41.2 1.0
 Mutual fund service fees 13.4 13.8
 Other 6.3 7.2
 Total revenues 265.0 186.2
 Interest expense 45.1 60.1
 Net revenues 219.9 126.1
 Expenses Excluding Interest
 Compensation and benefits 90.8 52.6
 Communications 19.3 12.0
 Depreciation and amortization 13.1 12.9
 Occupancy and equipment 15.1 11.7
 Advertising and market development 8.1 5.2
 Commissions, clearance and floor brokerage 9.6 3.5
 Professional services 3.0 3.8
 Other 8.0 6.0
 Total expenses excluding interest 167.0 107.7
 Income before taxes on income 52.9 18.4
 Taxes on income 23.2 7.8
 Net income $ 29.7 $ 10.6
 As Restated for the Three-for-Two Stock Split:
 Weighted average number of common
 and common equivalent shares 39.4 38.9
 Net income per share $.75 $.27
 Dividends declared per share $.040 $.027
 Certain 1991 revenues and expenses have been reclassified to conform with the 1992 presentation.
 THE CHARLES SCHWAB CORP.
 Selected Statistical Information
 Three Months
 Ended
 March 31,
 1992 1991
 Operating Statistics(A)
 Average daily trading volume 27,900 18,900
 Total number of revenue trades
 (in thousands) 1,755 1,154
 Average commission per agency trade $78.65 $73.95
 Number of customer accounts
 that traded (in thousands) 502 344
 Customer accounts opened during
 the quarter (in thousands) 141 96
 As of
 March 31,
 1992 1991
 Financial Condition
 Total assets (in billions) $5.6 $4.7
 Stockholders' equity (in millions) $231 $159
 Book value per common share $5.98 $4.16
 Customer Statistics(A)
 Customer equity (in billions)(B)
 Cash and cash equivalents:
 -- Schwab money market funds $9.1 $7.7
 -- Schwab One(R) cash balances 4.3 3.8
 -- Other cash equivalents .5 .3
 Net securities:
 -- Schwab 1000 Fund(TM) .2
 -- Schwab bond funds .1
 -- Mutual Fund Marketplace(R)(C) 7.0 3.7
 -- Fixed income securities
 (excludes mutual funds) 6.6 5.0
 -- Equity and other securities
 (excludes mutual funds) 24.6 16.7
 -- Margin loans outstanding (1.5) (.9)
 Total customer equity $50.9 $36.3
 (A) Statistics presented are for Charles Schwab & Co., Inc; operations of other subsidiaries are excluded.
 (B) Customer equity is defined as the net market value of customers' securities plus their cash balances at Schwab less margin loans extended to them by Schwab.
 (C) Excludes money market funds, Schwab 1000 Fund, Schwab U.S. Government Bond Fund (Short/Intermediate Term) and the Schwab California Tax-Free Bond Fund. Balances include equity funds of $4.7 billion and fixed income funds of $2.3 billion at March 31, 1992 and $2.6 billion and $1.1 billion, respectively, at March 31, 1991.
 -0- 4/14/92
 /CONTACT: Hugo W. Quackenbush or Mark C. Thompson of Schwab, 415-627-7810/
 (SCH) CO: Charles Schwab Corp. ST: California IN: FIN SU: ERN


DG-MM -- SF003 -- 8086 04/14/92 09:08 EDT
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