Charles Schwab 2006 Annual Report Download - page 23

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Schwab Investor Services meets the needs of
the individual investor, offering services on-
line, by phone, or at more than 300 Schwab
branches nationwide. In 2006, we served
more than 5.2 million accounts and, by year-
end, held over $670 billion in client assets.
The Investor Services enterprise also includes
other client-focused divisions, including:
- Corporate & Retirement Services, which helps
companies administer 401(k) and equity com-
pensation plans;
- CyberTrader®, which provides tools for highly
active online traders; and
- International and Multicultural Services,
which serves U.S.- based Asian and Hispanic
investors and operates outside the U.S. with
branches in Puerto Rico and London, and a
subsidiary in Hong Kong.
In 2006, we saw net new client assets grow
by 54 percent over the prior year by focusing
on four foundational areas of our business.
1. We enhanced our value. We eliminated
many service, maintenance, and “nuisance”
fees and ensured that our web equity
commissions were competitive.
2. We strengthened client relationships. More
than 500,000 clients now have a dedicated
Schwab Financial Consultant, and all clients
have access to complimentary investing
consultations and better online tools.
3. We improved client service. With our new
client concierge service, phone professionals
reach out to new clients to welcome them
to Schwab. We also enabled direct call-
back, allowing clients to talk with the same
knowledgeable phone-service professional
whenever they call back with a related
question.
4. We expanded help and guidance. We extended
our best market research to all clients
and expanded distribution of our quarterly
On Investing® magazine to all of our client
households.
While Schwab currently administers or provides
trust/custody services for thousands of retire-
ment plans, most are small to midsize, with a
more recent focus on attracting larger compa-
nies. The planned acquisition of The 401(k)
Company will bring expertise with some of
America’s largest companies.
In 2007 and beyond, we will continue to view
our business though our clients’ eyes as we
help more investors achieve financial success
through expanded help and guidance.
SCHWAB INVE S TOR S ERVIC E S
2006 F I N ANCIA L HIGHLI G H TS
- ANNUAL REVENUES INCREASED 18 PERCENT TO $3.2 BILLION
- PRE-TAX MARGIN WAS 32.0 PERCENT, UP FROM 27.6 PERCENT IN 2005
Erick Hoyer, Sacramento
branch manager