LPL Financial's (LPLA) January Metrics Rise on Upbeat Markets
LPL Financial's LPLA total brokerage and advisory assets were $1.36 trillion at the end of January 2024, increasing 0.6% from the prior month and 16.9% year over year. The rise in the company’s asset balance was mainly due to a robust market performance.
Of LPLA’s total assets, brokerage assets were $621.1 billion and advisory assets amounted to $740.7 billion. Brokerage assets increased 0.5% from December 2023 and 13% year over year. Advisory assets increased 0.7% from the previous month and 20.4% from January 2023.
Total net new assets (NNAs) were $2 billion in the reported month. NNAs were $9.2 billion and $8.6 billion in December 2023 and January 2023, respectively.
The company reported $47.3 billion of total client cash balance, down 2.5% from December 2023 and 20.8% from January 2023. Of the total balance, $33.7 billion was insured cash and $8.9 billion was deposit cash, while the remaining was money-market and client-cash balance.
LPL Financial’s recruiting efforts and solid advisor productivity will likely keep supporting advisory revenues. The company is expected to keep expanding through strategic buyouts, with a robust balance sheet position. However, the challenging operating backdrop remains a major near-term headwind.
Over the past year, LPLA shares have gained 6.2% against the industry’s decline of 3.7%.
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Currently, LPL Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Competitive Landscape
A couple of other brokerage firms that have come out with data for January 2024 are Interactive Brokers Group IBKR and Charles Schwab SCHW.
Interactive Brokers released the Electronic Brokerage segment’s performance metrics for January 2024. The segment deals with the clearance and settlement of trades for individual and institutional clients globally. It reported a rise in client Daily Average Revenue Trades (DARTs) on a sequential and year-over-year basis.
IBKR’s total client DARTs for the month were 2,201,000, which increased 12% from December 2023 and 11% year over year.
Schwab released its monthly activity report for January 2024.
The company’s core net new assets of $17.2 billion declined 60% from the previous month’s level and 52% from the prior-year month’s figure.
SCHW’s total client assets were $8.52 trillion, relatively stable with the December 2023 level and up 14% from January 2023. Client assets receiving ongoing advisory services were $4.36 trillion, marginally up from the prior month and rising 13% year over year.
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The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
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LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report
