Segment Information

6 Months Ended

Jun. 30, 2020

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 June 30,	2020		2019		2020		2019		2020		2019
Net Revenues
Net interest revenue	$	952	$	1,154	$	437	$	455	$	1,389	$	1,609
Asset management and administration fees	583		560		218		226		801		786
Trading revenue ⁽¹⁾	138		140		55		67		193		207
Other ⁽¹⁾	51		37		16		42		67		79
Total net revenues	1,724		1,891		726		790		2,450		2,681
Expenses Excluding Interest	1,168		1,057		394		388		1,562		1,445
Income before taxes on income	$	556	$	834	$	332	$	402	$	888	$	1,236



	Investor Services				Advisor Services				Total
Six Months Ended June 30,	2020		2019		2020		2019		2020		2019
Net Revenues
Net interest revenue	$	2,080	$	2,349	$	881	$	941	$	2,961	$	3,290
Asset management and administration fees	1,183		1,093		445		448		1,628		1,541
Trading revenue ⁽¹⁾	257		281		124		143		381		424
Other ⁽¹⁾	71		79		26		70		97		149
Total net revenues	3,591		3,802		1,476		1,602		5,067		5,404
Expenses Excluding Interest	2,322		2,119		810		785		3,132		2,904
Income before taxes on income	$	1,269	$	1,683	$	666	$	817	$	1,935	$	2,500

⁽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.