Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

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 attributed 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 table:

	Investor Services				Advisor Services				Total
Three Months Ended September 30,	2020		2019		2020		2019		2020		2019
Net Revenues
Net interest revenue	$	948	$	1,182	$	395	$	449	$	1,343	$	1,631
Asset management and administration fees	643		586		217		239		860		825
Trading revenue (1)	139		140		42		66		181		206
Other (1)	51		36		13		13		64		49
Total net revenues	1,781		1,944		667		767		2,448		2,711
Expenses Excluding Interest	1,167		1,070		392		405		1,559		1,475
Income before taxes on income	$	614	$	874	$	275	$	362	$	889	$	1,236

	Investor Services				Advisor Services				Total
Nine Months Ended September 30,	2020		2019		2020		2019		2020		2019
Net Revenues
Net interest revenue	$	3,028	$	3,531	$	1,276	$	1,390	$	4,304	$	4,921
Asset management and administration fees	1,826		1,679		662		687		2,488		2,366
Trading revenue (1)	396		421		166		209		562		630
Other (1)	122		115		39		83		161		198
Total net revenues	5,372		5,746		2,143		2,369		7,515		8,115
Expenses Excluding Interest	3,489		3,189		1,202		1,190		4,691		4,379
Income before taxes on income	$	1,883	$	2,557	$	941	$	1,179	$	2,824	$	3,736

(1) Beginning in the first quarter of 2020, order flow revenue was reclassified from other revenue to trading revenue. Prior period amounts have been reclassified to reflect this change.