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LPL Financial (LPLA) February Metrics Down on Adverse Markets

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LPL Financial Holdings Inc.’s (LPLA - Free Report) total brokerage and advisory assets were $1.14 trillion at the end of February 2022, having declined 1.1% from the prior month. Of the total assets, brokerage assets were $531.9 billion and advisory assets totaled $612.9 billion.

The decrease in LPLA’s assets balance was mainly due to the unfavorable equity market returns and decline in net new assets balance.

LPL Financial’s total net new assets were $5.2 billion in the reported month. Net new assets were $6.1 billion and $5.9 billion in January 2022 and February 2021, respectively.

LPL Financial reported $60.5 billion of total client cash balance, up 3.6% from January 2022 and 25.3% from February 2021. Of the total balance, $29.9 billion was insured cash and $10.5 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.

Shares of LPL Financial have rallied 13.1% so far this year against a 3.2% decline witnessed by the industry.

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LPLA currently 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 monthly data are Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .

Interactive Brokers’ Electronic Brokerage segment announced performance metrics for February 2022. The segment (dealing with the clearance and settlement of trades for individual and institutional clients globally) reported a fall in client Daily Average Revenue Trades (DARTs) both on a sequential and a year-over-year basis.

IBKR’s total client DARTs were 2,499,000, down 5% from the January 2022 level and 32% year over year. On an annualized basis, the company recorded Cleared Average DARTs per customer account of 319.

Schwab’s total client assets were $7.69 trillion in February 2022, down 2% from January 2022 but up 11% from February 2021. The decline from the prior month was mainly due to unfavorable equity market performance.

Client assets receiving ongoing advisory services were $3.88 trillion, down 1% from the prior month but up 14% year over year. Schwab’s core net new assets were $40.6 billion in the reported month. This reflected an increase of 21% from the previous month but a fall of 21% year over year.

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