AMTD 2018 Letter to Shareholders

ii We have an abundant supply of energy and smarts, and a passion for innovation. This uptick in trading overall amounted to about a $300 million benefit to income above and beyond what we had projected to start the year. We also gathered a record $92 billion in net new client assets in the midst of a major integration, driven by record asset gathering from our Institutional channel and efficient and effective marketing efforts on both sides of the business. Client assets now total $1.3 trillion, up 16 percent from last year. Let’s talk about the corporate tax cut. The benefit for TD Ameritrade was just under $300 million, which was significant. Combine that with roughly an additional $175 million thanks to three Federal Reserve interest rate hikes, plus significant revenue tailwinds from trading and balance growth, and we’ve been given some level of flexibility to reinvest back in our business. Let’s talk about where we’re doing that. Not in the status quo The thing about tailwinds is that they can disappear just as quickly as they appear. Even the strongest business models can fall victim to complacency. That’s why we consider now to be the most urgent time for TD Ameritrade. So we’re investing in a client experience to make it better than the rest To start, we’ve tweaked our strategic focus. Think of it as an investment in exceptionalism, which, by our definition, amounts to delivering a best-in-class client experience. If the Scottrade integration was THE top priority in 2018 , winning on the client experience is what matters most in 2019 … and, frankly, well beyond that. If it sounds a little idealistic, rest assured that within our walls it’s something our employees can see and measure with concrete plans to improve, structure, and milestones that keep us all accountable. In our business We’ve also been reflecting on a Retail business model that’s been successful, but held back to some extent recently as we’ve tried to be all things to all types of investors. That’s why you’ll start to see a renewed emphasis on investors who are positive, confident, and enjoy managing their own finances. Think of them as the 2020 version of the 1975 self-directed investor … someone we won over then and, in no uncertain terms, will CONTINUE to seek to win over today with a relationship that’s high-tech, right touch. Our Institutional business continues to zip right along. We’ve seen growth from all advisor segments, including new, existing, and breakaway brokers, which continues to contribute to strong asset gathering. We will continue to optimize the existing business, expand capabilities, revamp advice based on client segmentation, and continue to extend our technology advantage with a focus on automation. And, of course, deliver world-class, white-glove service. In past letters, we’ve been hesitant to talk too much about our international expansion effort because of its limited size, but it’s a promising start as part of our five-year growth story. Today we’re in Singapore and Hong Kong, taking our time to learn what Asian clients need and want when it comes to trading, research, and education. Judging from their initial interest and high engagement levels in the U.S. markets, the potential opportunity is significant. Letter to shareholders (continued)