LPL Financial's (LPLA) July Metrics Up on Robust Markets
LPL Financial Holdings Inc.’s LPLA total brokerage and advisory assets were $1.12 trillion at the end of July 2022, increasing 5.6% from the prior month but falling 0.5% year over year. The rise in LPLA’s assets balance from the June level was mainly driven by upbeat market performance.
Of LPLA’s total assets, brokerage assets were $530.9 billion and advisory assets totaled $593.4 billion. Brokerage assets were up 4.9% from June 2022 but declined 1.9% year over year. Advisory assets grew 6.2% from the prior month and 0.8% year over year.
LPL Financial’s total net new assets were $4.8 billion in the reported month. Net new assets were $10.5 billion and $10 billion in June 2022 and July 2021, respectively.
LPL Financial reported $69.41 billion of total client cash balance, down 0.3% from the June 2022-level but jumped 44.9% from July 2021. Of the total balance, $41.9 billion was insured cash and $12.3 billion was deposit cash, while the remaining was money-market balance.
LPL Financial’s recruiting efforts and solid advisor productivity will aid advisory revenues. Also, it is expanding through strategic buyouts on the back of a solid balance sheet position.
The stock has surged 44.8% so far this year against a 9.3% decline witnessed by the industry.
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LPLA currently carries a Zacks Rank #2 (Buy). 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 monthly data are Interactive Brokers Group IBKR and Charles Schwab SCHW.
Interactive Brokers’ Electronic Brokerage segment announced performance metrics for July 2022. The segment (dealing with the clearance and settlement of trades for individual and institutional clients globally) reported a decline in client Daily Average Revenue Trades (DARTs) both on a sequential and a year-over-year basis.
Total client DARTs for the month were 1,823,000, down 10% from the June 2022 level and 23% year over year. On an annualized basis, IBKR recorded Cleared Average DARTs per customer account of 210. The metric decreased 11% sequentially and 44% from the prior-year period.
Schwab released its activity report for July 2022. Total client assets were $7.3 trillion, up 7% from June 2022 and down 4% from July 2021.
Further, SCHW’s core net new assets were $31.5 billion in the reported month. This compared with net new assets of $40.6 billion in June 2022 and $44.3 billion in July 2021. Client assets receiving ongoing advisory services were $3.74 trillion, up 6% from the prior month but down 1% year over year.
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