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LPL Financial (LPLA) October Metrics Rise on Upbeat Markets
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LPL Financial Holdings Inc.’s (LPLA - Free Report) total brokerage and advisory assets were $1.09 trillion at the end of October 2022, increasing 4.6% from the prior month but down 8% year over year. The rise in LPLA’s assets balance from the September level was mainly driven by upbeat market performance.
Of LPLA’s total assets, brokerage assets were $517.3 billion and advisory assets totaled $569.3 billion. Brokerage assets were up 4.3% from September 2022 but down 7.2% year over year. Likewise, advisory assets grew 4.9% from the prior month but declined 8.7% from October 2021.
LPL Financial’s total net new assets were $4 billion in the reported month. Net new assets were $5.4 billion and $7.2 billion in September 2022 and October 2021, respectively.
The company reported $65.2 billion of total client cash balance, down 2.4% from September 2022 but up 29.1% from October 2021. Of the total balance, $46.9 billion was insured cash and $12.2 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 36.4% so far this year against a 6.3% decline witnessed by the industry.
A couple of other brokerage firms that have already come out with monthly data are Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .
Interactive Brokers’ Electronic Brokerage segment announced performance metrics for October 2022. The segment (dealing with the clearance and settlement of trades for individual and institutional clients globally) reported relatively stable Daily Average Revenue Trades (DARTs) on a sequential basis.
Total client DARTs for the month were 1,965,000, on par with September 2022 but down 15% from October 2021. On an annualized basis, IBKR recorded Cleared Average DARTs per customer account of 218. The metric grew 1% sequentially and 29% from the prior-year period.
Schwab released its monthly activity report for October 2022. Core net new assets were $42 billion in the reported month, growing 6% sequentially and 14% year over year. This was likely driven by upbeat market performance.
Total client assets at SCHW were $7 trillion, up 5% from September 2022 but down 12% from October 2021. Likewise, client assets receiving ongoing advisory services were $3.59 trillion, rising 5% from the prior month but decreasing 9% year over year.
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LPL Financial (LPLA) October Metrics Rise on Upbeat Markets
LPL Financial Holdings Inc.’s (LPLA - Free Report) total brokerage and advisory assets were $1.09 trillion at the end of October 2022, increasing 4.6% from the prior month but down 8% year over year. The rise in LPLA’s assets balance from the September level was mainly driven by upbeat market performance.
Of LPLA’s total assets, brokerage assets were $517.3 billion and advisory assets totaled $569.3 billion. Brokerage assets were up 4.3% from September 2022 but down 7.2% year over year. Likewise, advisory assets grew 4.9% from the prior month but declined 8.7% from October 2021.
LPL Financial’s total net new assets were $4 billion in the reported month. Net new assets were $5.4 billion and $7.2 billion in September 2022 and October 2021, respectively.
The company reported $65.2 billion of total client cash balance, down 2.4% from September 2022 but up 29.1% from October 2021. Of the total balance, $46.9 billion was insured cash and $12.2 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 36.4% so far this year against a 6.3% decline witnessed by the industry.
Image Source: Zacks Investment Research
LPLA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Competitive Landscape
A couple of other brokerage firms that have already come out with monthly data are Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .
Interactive Brokers’ Electronic Brokerage segment announced performance metrics for October 2022. The segment (dealing with the clearance and settlement of trades for individual and institutional clients globally) reported relatively stable Daily Average Revenue Trades (DARTs) on a sequential basis.
Total client DARTs for the month were 1,965,000, on par with September 2022 but down 15% from October 2021. On an annualized basis, IBKR recorded Cleared Average DARTs per customer account of 218. The metric grew 1% sequentially and 29% from the prior-year period.
Schwab released its monthly activity report for October 2022. Core net new assets were $42 billion in the reported month, growing 6% sequentially and 14% year over year. This was likely driven by upbeat market performance.
Total client assets at SCHW were $7 trillion, up 5% from September 2022 but down 12% from October 2021. Likewise, client assets receiving ongoing advisory services were $3.59 trillion, rising 5% from the prior month but decreasing 9% year over year.