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Schwab Repurchases $1 Billion of Shares Held by TD Bank Group

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Rhea-AI Summary

The Charles Schwab Corporation (NYSE: SCHW) announced the purchase of approximately 15 million shares of its nonvoting common stock from TD Bank Group for $1 billion. This acquisition aligns with Schwab's recent repurchase authorization, and the purchase price was set at the lowest price TD Bank received from a third-party sale. This strategic buyback reflects Schwab's commitment to enhancing shareholder value and optimizing capital management.

Positive
  • Strategic buyback of 15 million shares enhances shareholder value.
  • Purchase executed at a favorable price below current market value, indicating effective capital management.
Negative
  • None.

WESTLAKE, Texas--(BUSINESS WIRE)-- The Charles Schwab Corporation (“Schwab” or the “Company”) announced today that it has purchased approximately 15 million shares of its nonvoting common stock directly from TD Bank Group (“TD Bank") for $1 billion. The shares are being acquired pursuant to Schwab’s recent repurchase authorization. Under the terms of a Repurchase Agreement entered into with a subsidiary of TD Bank, the purchase price paid by Schwab is equal to the lowest price per share that TD Bank received in a contemporaneous share sale facilitated with a third-party market maker, which resulted in a purchase price lower than today’s closing price.

Commentary from the CFO

Peter Crawford, Chief Financial Officer, provides additional perspective on this repurchase agreement at www.aboutschwab.com/cfo-commentary.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 33.9 million active brokerage accounts, 2.3 million corporate retirement plan participants, 1.7 million banking accounts, and $6.83 trillion in client assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiaries, Charles Schwab & Co., Inc., TD Ameritrade, Inc., and TD Ameritrade Clearing, Inc., (members SIPC, www.sipc.org), and their affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at www.aboutschwab.com.

TD Ameritrade, Inc. and TD Ameritrade Clearing, Inc. are separate but affiliated companies and subsidiaries of TD Ameritrade Holding Corporation. TD Ameritrade Holding Corporation is a wholly owned subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto Dominion Bank.

MEDIA:

Mayura Hooper

Charles Schwab

Phone: 415-667-1525

INVESTORS/ANALYSTS:

Jeff Edwards

Charles Schwab

Phone: 415-667-1524

Source: The Charles Schwab Corporation

FAQ

What is the purpose of Schwab's $1 billion buyback?

The buyback aims to enhance shareholder value and optimize capital management.

How many shares did Schwab repurchase from TD Bank Group?

Schwab repurchased approximately 15 million shares of its nonvoting common stock.

What is the impact of the buyback on Schwab's stock price?

The buyback could potentially increase the stock price by reducing the number of shares outstanding.

When was the buyback announcement made?

The announcement was made recently, as part of Schwab's ongoing capital management strategy.

What is the stock symbol for Charles Schwab?

The stock symbol for Charles Schwab is SCHW, and for its subsidiary, it is SWTXX.

The Charles Schwab Corporation

NYSE:SCHW

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