SAN FRANCISCO--(BUSINESS WIRE)--

Chairman of the Board, Charles R. Schwab commented today, “With the global economy already on a positive path, the recent tax reform enacted by Congress and signed into law in late 2017 provided new fuel for economic growth in 2018 and we expect it to be a stimulus for the market as investors anticipate the positive impact tax reductions will have on U.S. businesses. As just one example, our firm will see a reduction in its tax obligation of approximately one third, which reinforces our confidence in making ongoing investments in our business.”

President and CEO, Walt Bettinger commented, “In 2017, anticipating the tax law change and in response to the company’s strong financial performance and our employees’ unwavering commitment to clients, Schwab provided a special $1,000 bonus for about 9,000 non-executive employees. Based on the favorable environment, we also continued hiring staff across the firm’s geographic locations, adding over 1,200 net new employees, and we allocated part of our 11% overall spending increase to support client service efforts and continue to build out new business centers in Austin and Dallas that will allow us to house over 4,000 new employees in the next two years. Additionally, we expanded parental leave benefits for all Schwab employees and increased the annual corporate contribution to philanthropy to benefit our local communities.”

Mr. Schwab concluded, “Recent tax reform legislation, low unemployment, and strong growth across a wide spectrum of industries are all positive signs for the U.S. economy. Schwab is preparing for a strong 2018, with continued investments to better serve clients, recruit and retain world-class talent, contribute to our local communities, and increase returns to Schwab stockholders.”

In addition to the firm’s plans to fund growth initiatives, the Board of Directors of The Charles Schwab Corporation at its meeting today increased the quarterly cash dividend by $0.02, or 25%, to $0.10 per common share. The dividend is payable February 23, 2018 to stockholders of record as of the close of business on February 9, 2018. The new dividend rate is consistent with the company’s target range of approximately 20 - 30 percent of net income.

The Board of Directors of The Charles Schwab Corporation has also declared a regular quarterly dividend on the outstanding Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series C, in the amount of $15.00 per share or $0.375 per depositary share, each representing 1/40th interest in a share of Series C Preferred Stock. The dividend is payable March 1, 2018 to stockholders of record at the close of business on February 14, 2018.

The Board of Directors of The Charles Schwab Corporation has also declared a regular quarterly dividend on the outstanding Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series D, in the amount of $14.88 per share or $0.372 per depositary share, each representing 1/40th interest in a share of Series D Preferred Stock. The dividend is payable March 1, 2018 to stockholders of record at the close of business on February 14, 2018.

The Board of Directors of The Charles Schwab Corporation has also declared a regular semi-annual dividend on the outstanding Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series E, in the amount of $2,312.50 per share or $23.125 per depositary share, each representing 1/100th interest in a share of Series E Preferred Stock. The dividend is payable March 1, 2018 to stockholders of record at the close of business on February 14, 2018.

Forward-Looking Statements

This press release contains forward-looking statements relating to economic strength in 2018, tax reduction, returns to stockholders, and target dividend range. 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, general market conditions, including the level of interest rates and equity valuations; the company’s ability to attract and retain clients and registered investment advisors and grow those relationships and client assets; competitive pressures on pricing, including deposit rates; the timing and amount of bulk transfers; the quality of the company’s balance sheet assets; client sensitivity to interest rates; regulatory guidance; 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 more than 345 offices and 10.8 million active brokerage accounts, 1.6 million corporate retirement plan participants, 1.2 million banking accounts, and $3.36 trillion in client assets as of December 31, 2017. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, money management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and 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 banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at www.schwab.com and www.aboutschwab.com.

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