Charles Schwab 2015 Annual Report Download - page 42

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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)
- 22 -
x the Company’s ability to develop and launch new products, services and capabilities in a timely and successful
manner;
x fluctuations in client asset values due to changes in equity valuations;
x the performance or valuation of securities available for sale and securities held to maturity;
x trading activity;
x the level of interest rates, including yields available on money market mutual fund eligible instruments;
x the timing and impact of changes in the Company’s level of investments in land, leasehold improvements,
information technology equipment and software;
x the adverse impact of financial reform legislation and related regulations;
x the amount of loans to the Company’s brokerage and banking clients;
x the level of the Company’s stock repurchase activity;
x the availability and terms of external financing;
x capital needs and management;
x client sensitivity to interest rates;
x timing, amount and impact of the migration of certain balances from brokerage accounts and sweep money market
funds into Schwab Bank;
x the Company’s ability to manage expenses;
x regulatory guidance;
x the level of client assets, including cash balances;
x competitive pressures on rates and fees;
x acquisition integration costs;
x potential breaches of contractual terms for which the Company has indemnification and guarantee obligations;
x client use of the Company’s investment advisory services and other products and services;
x the volume of prepayments in the Company’s mortgage-backed securities portfolio; and
x the impact of changes in market conditions on money market fund fee waivers, revenues and pre-tax profit margin.
Certain of these factors, as well as general risk factors affecting the Company, are discussed in greater detail in this Annual
Report on Form 10-K, including “Item 1A – Risk Factors.”