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LPL Financial (LPLA) July Metrics Increase on Market Gains

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LPL Financial Holdings Inc.’s (LPLA - Free Report) total brokerage and advisory assets of $1.13 trillion at the end of July 2021 grew 1.6% from the prior month and 42.7% year over year. Of the total assets, brokerage assets were $541.4 billion and advisory assets totaled $588.4 billion.

The increase was mainly driven by the impressive performance of the equity markets and brokerage assets from M&T Bank that onboarded in July.

Total net new assets were $10 billion in the reported month. This included $3 billion of brokerage assets from M&T Bank that onboarded in July. In July 2021, net new assets were $10 billion compared with $2.9 billion in July 2020.

LPL Financial reported $48.5 billion of total client cash balance, flat from June 2021 but up 7.5% from $45.1 billion recorded in July 2020. Further, of the total balance, $34.4 billion was insured cash and $7.9 billion was deposit cash, while the remaining was money-market balance.

Shares of LPL Financial have surged 74.5% in the past 12 months, underperforming 84.1% growth recorded by the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Brokerage Firms

Interactive Brokers Group (IBKR - Free Report) released the Electronic Brokerage segment’s performance metrics for July 2021. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported a 32% year-over-year rise in client daily average revenue trades to 2,363,000.

Tradeweb Markets Inc. (TW - Free Report) reported total trading volume of $20.6 trillion in July 2021. Average daily volumes were $972.2 billion, up 34.2% year over year.

Charles Schwab (SCHW - Free Report) released its activity report for July 2021. Total client assets were $7.64 trillion, up 1% from June 2021 and 79% from July 2020. Client assets receiving ongoing advisory services were $3.7884 trillion, up 1% from the prior month and 74% year over year.