Segment Information

9 Months Ended

Sep. 30, 2019

Schwab’s two reportable segments are Investor Services and Advisor Services. Schwab structures the operating segments according to its clients and the services provided to those clients. The Investor Services segment provides retail brokerage and banking services to individual investors, and retirement plan services, as well as other corporate brokerage services, to businesses and their employees. The Advisor Services segment provides custodial, trading, banking, and support services, as well as retirement business services, to independent RIAs, independent retirement advisors, and recordkeepers. Revenues and expenses are allocated to the two segments based on which segment services the client.

Management evaluates the performance of the segments on a pre-tax basis. Segment assets and liabilities are not used for evaluating segment performance or in deciding how to allocate resources to segments. There are no revenues from transactions between the segments.

Financial information for the segments is presented in the following tables:



	Investor Services				Advisor Services				Total
Three Months Ended September 30,	2019		2018		2019		2018		2019		2018
Net Revenues
Net interest revenue	$	1,182	$	1,138	$	449	$	389	$	1,631	$	1,527
Asset management and administration fees	586		565		239		244		825		809
Trading revenue	108		112		64		64		172		176
Other	68		53		15		14		83		67
Total net revenues	1,944		1,868		767		711		2,711		2,579
Expenses Excluding Interest	1,070		1,015		405		345		1,475		1,360
Income before taxes on income	$	874	$	853	$	362	$	366	$	1,236	$	1,219



	Investor Services				Advisor Services				Total
Nine Months Ended September 30,	2019		2018		2019		2018		2019		2018
Net Revenues
Net interest revenue	$	3,531	$	3,158	$	1,390	$	1,039	$	4,921	$	4,197
Asset management and administration fees	1,679		1,727		687		747		2,366		2,474
Trading revenue	329		354		202		203		531		557
Other	207		182		90		53		297		235
Total net revenues	5,746		5,421		2,369		2,042		8,115		7,463
Expenses Excluding Interest	3,189		3,069		1,190		1,042		4,379		4,111
Income before taxes on income	$	2,557	$	2,352	$	1,179	$	1,000	$	3,736	$	3,352