Charles Schwab 2010 Annual Report Download - page 43

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THE CHARLES SCHWAB CORPORATION
Management’s Discussion and Analysis of Financial Condition and Results of Operations
(Tabular Amounts in Millions, Except Ratios, or as Noted)
Financial information for the Company’s reportable segments is presented in the following tables:
N/M Not meaningful.
Investor Services Institutional Services
Year Ended December 31,
Growth Rate
2010-2009 2010 2009 2008
Growth Rate
2010-2009 2010 2009 2008
Net Revenues:
Asset management
and administration
fees
1%
$ 976
$ 968
$ 1,293
(7%)
$ 846
$ 907
$ 1,062
Net interest revenue
23%
1,297
1,058
1,398
21%
227
187
283
Tradin
g
revenue
(18%)
557
679
725
(14%)
273
317
355
Other
(25%)
70
93
24
(21%)
65
82
60
Provision for loan
losses
(32%)
(23)
(34)
(15)
—
(4)
(4)
(2)
Net impairment losses
on securities
(41%)
(32)
(54) (4
0
) (33%) (4)
(6)
(4)
Total net revenues
5%
2,845
2,710
3,385
(5%)
1,403
1,483
1,754
Expenses Excluding
Interest
8%
2,065
1,906
2,107
3%
96
0
929
1,001
Income from
continuing
operations before
taxes on income
(3%)
$78
0
$ 804
$ 1,278
(2
0
%)
$ 443
$ 554
$ 753
Unallocated Total
Year Ended December 31,
Growth Rate
2010-2009 2010 2009 2008
Growth Rate
2010-2009 2010 2009 2008
Net Revenues:
Asset management
and administration
fees
—
$
—
$
—
$
—
(3%)
$ 1,822
$ 1,875
$ 2,355
Net interest revenue
—
—
—
1
22%
1,524
1,245
1,682
Tradin
g
revenue
—
—
—
—
(17%)
83
0
996
1,080
Other
—
—
—
1
0
(23%) 135
175
94
Provision for loan
losses
—
—
—
—
(29%)
(27)
(38)
(17)
Net impairment losses
on securities
—
—
—
—
(40%)
(36)
(60)
(44)
Total net revenues
—
—
—
11
1%
4,248
4,193
5,150
Expenses Excluding
Interest
N/M
444
82 14 19% 3,469
2,917
3,122
Income from
continuing
operations before
taxes on income
N/M
$ (444)
$ (82)
(3)
(39%)
$ 779
$ 1,276
$ 2,028
Taxes on income
(34%)
(325)
(489)
(798)
Income from
continuing
o
p
erations
(42%)
454
787
1,230
Loss from
discontinued
operations, net of
tax
—
—
—
(18)
Net Income
(42%) $ 454
$ 787
$ 1,212