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2017 ANNUAL REPORT

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L E TTE R TO SHAR E HOLDERS

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FI NANCI AL R E SULTSi v

TR ANSFO R MI NG THE C LIEN T EXPERIEN C E

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FI ND I NG O UR PUR PO S Evi

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CO R PO R ATE L E ADE R S H IP

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LETTER TO SHAREHOLDERS

We'll go first.

It's hard to believe 2018 is here. And as we look back over the accomplishments of 2017, we are incredibly proud of what we have been able to achieve for our shareholders, clients, and Associates.

Consider these organic growth trends to start: ? A record $80 billion in net new client assets. ? Record client trades averaging 511,000 per day,

despite persistently low market volatility. ? A 13 percent increase in investment product fees,

further diversifying our revenue. Then, when you add the benefit of a rising interest rate environment, you get: ? A 10 percent increase in net revenues, to

$3.7 billion. ? A 4 percent increase in GAAP earnings per share

of $1.64. ? And a 10 percent increase in Non-GAAP earnings

per share of $1.84.(1) Financial strength and powerful momentum. These are the things we like to see as we end another year at TD Ameritrade. With interest rates on the rise and investors broadly engaged, it was a good

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(1) See reconciliation of Non-GAAP financial measures on page 113. i

LETTER TO SHAREHOLDERS

year. And, what makes us particularly proud, is that our teams delivered all of this while facing the challenges of a pending integration and renewed pricing competition.

For us, it wasn't a year of excuses--it was one of solutions.

We are competing every day for the trust of investors and independent Registered Investment Advisors (RIAs). That trust starts and stops with an exceptional client experience--one we remain steadfastly committed to enhancing. Our net advocate scores, a measurement

of client satisfaction, were up across the board this year, and particularly high in our branches and among advisors. We're pleased with that progress, but at the same time, we know more needs to be done.

You see, the world is changing all around us. New technologies are rapidly influencing consumer behaviors--and expectations. And those who choose to sit back and adapt to change, rather than lead this transformation, run the risk of becoming obsolete.

We want to lead. So here's what you can expect from us this year.

First, we're committing to accelerating and diversifying

our revenue growth.

Organic growth remains strong, and while revenues were up this year, that didn't happen without some

challenges. 2017 was a year of intense competitive pressure. And, while we have the financial strength and flexibility to engage when compelled to do so, further diversification is imperative. New initiatives, like our enhanced ETF Market Center and our Model Market Center for RIAs, are not only giving our clients more choice and value, they are new ways for us to tap into emerging industry trends and further evolve our business model.

Next, we're increasing our organizational agility

and efficiency.

We must make it possible for our teams to get more done, more efficiently. Doing so will free up resources we can invest in stronger relationships with clients, Associate development, and new opportunities to gain a competitive edge.

Because we want to build an environment that breeds innovation.

We want TD Ameritrade to be a place that empowers anyone with an idea to take risks, fail fast, and, ultimately, break through.

Innovation takes many forms. It's the little things we do behind the scenes to make life easier for our Associates and clients. It's taking an hours-long process and compressing it to just seconds.

And every once in a while it's something that completely changes the game.

This year we launched a roboadvisor, Essential Portfolios, which attracted more than $1 billion in assets under management in its first 12 months. We embraced artificial

JOE MOGLIA CHAIRMAN

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intelligence and launched our first skill for Amazon's Alexa, and this fall we became the first to offer trading via chatbot in Facebook Messenger.

We believe that investing is the key to financial well-being--something that can and should be seamlessly integrated into our daily lives. So we're going to the places where our clients "live." We're working on the periphery of our daily operations to identify new ways to do what we've been doing since 1975-- making investing easier.

And hopefully we'll change some lives while we're at it.

clearing conversion, integrating Scottrade clients and Associates, and working to deliver on synergy plans.

This is the beginning of something special.

The best client experiences today balance high tech with the right touch. We're investing in both, but Scottrade significantly enhances the touch, with a tripling of our physical footprint, adding significant size and scale to our business. It's a combination that allows us to take the best things TD Ameritrade has to offer--and share them with more people, in more ways, than ever before.

None of this matters, however, unless we successfully integrate Scottrade.

A little over a year ago, we revealed our plans to acquire Scottrade, and now here we are 15 months later, approaching

And thanks to your continued support, and that of all of our TD Ameritrade Associates, together, we will do just that, transforming lives--and investing--for the better.

This is the beginning of something special.

TIM HOCKEY PRESIDENT & CEO

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FINANCIAL RESULTS

What yea

As we head into 2018, we are exactly where we want to be: a company with strong momentum and financial strength across all core metrics.

With a market rally and broader investor engagement, there were many opportunities to capture money in motion in 2017. Trading was strong, despite persistently low intraday volatility, and new business was up in both our Retail and Institutional channels. New accounts, asset flows, and other key indicators were the highest we've seen since the financial crisis, and Institutional asset gathering was up more than 50 percent from last year's record results.

This organic growth paid off. Combined with the benefits of the rising rate environment, we delivered double-digit revenue growth, invested in more innovation and efficiency, and added incremental value to our shareholders. Nearly $380 million was paid out in dividends in 2017, and we've increased our quarterly dividend by 17 percent for 2018. We will continue to invest to grow and diversify revenue, focus on financial results, and deliver on our commitment to shareholders.

511,000

AVERAGE CLIENT TRADES PER DAY

(UP 10% YOY)

$1.1 trillion

TOTAL CLIENT ASSETS

(UP 45% YOY)

$80 billion

NET NEW CLIENT ASSETS

(UP 33% YOY)

38%

PRE-TA X MARGIN

(1) See reconciliation of Non-GAAP financial measures on page 113.

$1.64

GAAP EARNINGS PER SHARE (UP 4% YOY)

$1.84

NON-GAAP EARNINGS PER SHARE(1) (UP 10% YOY)

We are exactly where we want to be.

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