Schwab Reports Quarterly Results; Net New Assets Total $23 Billion, Revenues Rise 14%

Share Name	Share Symbol	Market	Type	Share ISIN	Share Description
Safecharge International Group Limited	LSE:SCH	London	Ordinary Share	GG00BYMK4250	ORD USD0.0001

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SAN FRANCISCO, Oct. 17 /PRNewswire-FirstCall/ -- The Charles Schwab Corporation announced today that its net income for the quarter ended September 30, 2005 was $207 million. In comparison, the Company reported a net loss of $41 million for the third quarter of 2004 and net income of $186 million for the second quarter of 2005. For the nine months ended September 30, 2005, the Company's net income was $538 million, compared with net income of $233 million during the same period in 2004. Three Months Ended Nine Months Ended September 30, % September 30, % 2005 2004 Change 2005 2004 Change Financial Highlights Revenues (in millions) $1,138 $1,000 14% $3,284 $3,142 5% Net income (loss) (in millions) $207 $(41) n/m $538 $233 131% Diluted earnings per share $.16 $(.03) n/m $.41 $.17 141% Pre-tax profit margin(1) 28.9% 7.2% 26.7% 15.4% Return on stockholders' equity 19% (3)% 16% 7% (1) From continuing operations. n/m - not meaningful Note: The three and nine month periods ended September 30, 2004 reflect after-tax restructuring charges of $70 million and $71 million, respectively, and after-tax losses from discontinued operations of $87 million and $79 million, respectively. See Reconciliation of Net Income to Adjusted Operating Income for additional information. Chairman and CEO Charles Schwab commented, "Over the last fifteen months, our primary focus has been restoring our value proposition and reconnecting with our clients. Our success in this effort is reflected in Schwab's business momentum -- September marked our fourth consecutive month of net new assets in excess of $6 billion and our net new assets of $23.4 billion for the third quarter of 2005 were 80% higher than last year's third quarter. Total client assets set a new record of $1.166 trillion at month-end September, up 16% from September 2004. Our total revenues increased by 14% versus a year ago and our net income rose to $207 million for the quarter, the second- highest level in our history." "To build on this foundation, Schwab is now focused on forging a new era of profitable growth by developing stronger relationships with our clients and helping them achieve better financial outcomes," Mr. Schwab continued. "Our commitment to driving profitable growth is reflected in our recent announcements regarding a new national advertising campaign, eliminating account service and order handling fees, and the expanded availability of managed accounts to all of our retail brokerage clients." CFO Christopher Dodds said, "Schwab has now achieved ten consecutive quarterly increases in its non-trading revenues, as the Company continues to benefit from its strength in attracting client assets and the rising interest rate environment. Non-trading revenues accounted for 84% of Schwab's total third quarter revenues. Our revenue growth, combined with our ongoing focus on expense discipline, yielded a 29% pre-tax margin for the third quarter of 2005 and a year-to-date pre-tax margin of 27%. Capital management remains a priority -- we limited our capital expenditures to $25 million and repurchased $190 million of common stock during the third quarter, which helped the Company achieve a 19% return on equity, the highest quarterly level since the first quarter of 2000." Mr. Dodds added, "Client engagement continues to be strong thus far in October -- daily average revenue trades for the first nine trading days of the month totaled 229,000." Business highlights for the third quarter (data as of quarter-end unless otherwise noted): Advised Investing * For accounts at the Company with an ongoing advice component (includes accounts enrolled in Schwab Private Client(TM) and Schwab Advised Investing(TM), accounts managed by independent investment advisors (IAs), and U.S. Trust(R) accounts): o Net new client assets during the quarter = $16.4 billion. o Total assets = a record $568 billion, up 20% year-over-year. o Total number of accounts = 1.6 million. Individual Investor Business * Number of clients enrolled in Schwab Private Client and Schwab Advised Investing = 55,600, up 7% from the prior quarter. * Eliminated account service fees on U.S. individual brokerage accounts(1) and the $3.00 order handling fee on equity trades. * Enhanced operating efficiency and client service by automating the archival of forms and electronic signatures. Schwab Institutional(R) Business * Total client assets associated with Schwab Institutional (SI) = $388 billion, up 23% year-over-year. * Client assets new to the Schwab Advisor Network(R) program during the quarter = $1.7 billion, up 17% year-over-year. * Client assets at Schwab associated with IA referral programs = $28.5 billion, up 25% year-over-year. * Announced enhancements to the PortfolioCenter(R) portfolio management system, with the addition of Export Wizard and PortfolioCenter Relationship Manager(R), which help IAs identify the difference between a portfolio's investment holdings and its target allocation, and enable them to more efficiently prepare and transmit trade instructions. * Hosted the IMPACT(R) 2005 Conference, drawing a record number of more than 2,000 IAs, exhibitors and strategic partners, and featuring more than 30 educational sessions, forums and workshops. Corporate Services Business * Net new assets during the quarter = $2.3 billion. * Total client assets in employer-sponsored retirement plans at Schwab = $143 billion, up 17% year-over-year. U.S. Trust Business * Total referrals from Schwab to U.S. Trust were over 350, compared with over 360 in the prior quarter. * Client assets at U.S. Trust associated with the referral program = $5.6 billion, up 33% year-over-year and up $586 million from the prior quarter. * Total client assets at U.S. Trust = $146.9 billion, up 7% year-over- year. Products * Total client assets held in third-party Mutual Fund OneSource(R) funds = $131 billion, up 14% year-over-year. * Total client assets held in proprietary funds (Schwab Funds(R), Excelsior(R) and other) = $161 billion, up 6% year-over-year. * Total client assets held in fixed income securities = $151 billion, up 11% year-over-year. * For Charles Schwab Bank, N.A.: o Balance sheet assets = $5.9 billion, up 14% from the prior quarter. o Outstanding mortgage and home equity loans = $1.8 billion. o First mortgage originations during the quarter = $423 million. * Launched the Schwab Large-Cap Growth Fund(TM), a new fund that seeks long-term capital growth and will use Schwab Equity Ratings(R) to help identify stocks with excellent performance potential. * Debuted Schwab's ETF Center, offering clients access to exchange traded funds (ETF) through a single location that integrates research, selection, ratings, analysis and trading. * Commenced offering a number of Schwab mutual funds, including most of Schwab's active equity funds, all 10 fixed income funds and the Laudus MarketMasters Funds(TM), through third-party distributors to non-Schwab clients. (1) Account service fees are periodic fees automatically charged to accounts that fail to meet asset, trading, or other published thresholds. Other fees still apply. Accounts exempt from account service fees are subject to a minimum balance charge of $30 per quarter for brokerage accounts or $50 per year for IRAs if, after receipt of notice and a notice period, their assets remain below account opening minimums of $2,500 for brokerage accounts or $2,000 for IRAs. The minimum balance charge is waived for accounts of households with balances of at least $10,000 or at least eight equity and/or options trades in the preceding 12 months. Excludes QRP, CRA, individual 401(k), 403(b)(7), SIMPLE IRA -- plan level accounts, and all accounts held by clients who reside outside the U.S., its territories or possessions. The Charles Schwab Corporation (NYSE / Nasdaq: SCH), through its operating subsidiaries, provides securities brokerage and financial services to individual investors and the independent investment advisors who work with them. With over 7 million individual investor accounts and more than $1 trillion in client assets, The Charles Schwab Corporation is one of the nation's largest financial services firms. Its subsidiary Charles Schwab & Co., Inc. (member SIPC) provides a complete range of investment services and products, including an extensive selection of mutual funds; financial planning and investment advice; retirement plans; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent fee-based investment advisors. Its subsidiary Charles Schwab Bank, N.A. (member FDIC) provides banking and mortgage services and products. The corporation's other operating subsidiaries include U.S. Trust Corporation (member FDIC) and CyberTrader(R), Inc. (member SIPC). These companies' Web sites can be reached at http://www.schwab.com/, http://www.schwabbank.com/, http://www.ustrust.com/, and http://www.cybertrader.com/. DATASOURCE: Charles Schwab CONTACT: Media, Glen Mathison, +1-415-636-5448, or Investors/Analysts, Rich Fowler, +1-415-636-9869, both of Charles Schwab Web site: http://www.schwab.com/

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SCH Safecharge International Group Limited