LPL Financial's (LPLA) November Metrics Rise on Upbeat Markets
LPL Financial's LPLA total brokerage and advisory assets were $1.30 trillion at the end of November 2023, increasing 6.6% from the prior month and 14.5% year over year. The rise in the company’s asset balance was mainly due to solid market performance.
Of LPLA’s total assets, brokerage assets were $598.2 billion and advisory assets amounted to $702.3 billion. Brokerage assets increased 5.7% from October 2023 and 11.4% year over year. Advisory assets gained 7.5% from the prior month and 17.2% from November 2022.
Total net new assets (NNAs) were $8.4 billion in the reported month. NNAs were $7.2 billion and $5.6 billion in October 2023 and November 2022, respectively.
The company reported $47.3 billion of total client cash balance, up 0.9% from October 2023 but down 24.3% from November 2022. Of the total balance, $33.8 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 three months, shares of LPLA have declined 11.5% against the industry’s growth of 8%.
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LPLA currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Competitive Landscape
A couple of other brokerage firms that have come out with monthly data for November are Interactive Brokers Group IBKR and Charles Schwab SCHW.
Interactive Brokers released its Electronic Brokerage segment’s performance metrics for November 2023. The segment deals with the clearance and settlement of trades for individual and institutional clients globally. It reported a decline in client Daily Average Revenue Trades (DARTs) on a sequential and year-over-year basis.
For IBKR, total client DARTs for the month were 1,898,000, declining 2% from the October 2023 level and 3% year over year.
Schwab released its monthly activity report for November 2023.
The company’s core net new assets of $21.7 billion jumped 92% from the previous month’s levels but declined 34% from the prior-year month’s figures. SCHW’s total client assets in November 2023 were $8.18 trillion, up 7% from October 2023 levels and 12% from November 2022 levels.
Client assets receiving ongoing advisory services were $4.16 trillion, rising 7% from the prior month and 10% year over year.
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The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report
LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report
