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LPL Financial's (LPLA) May Metrics Rise on Favorable Markets
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LPL Financial's (LPLA - Free Report) total brokerage and advisory assets were $1.19 trillion at the end of May 2023, increasing just 0.2% from the prior month and 6.2% year over year. The rise in LPLA’s assets balance was mainly due to decent market performance.
Of LPLA’s total assets, brokerage assets were $560.2 billion and advisory assets amounted to $629.8 billion. Brokerage assets were up 0.1% from April 2023 and 6% year over year. Advisory assets grew 0.3% from the prior month and 6.4% from May 2022.
LPL Financial’s total net new assets (NNAs) were $8.1 billion in the reported month. NNAs were $4.4 billion and $24.8 billion in April 2023 and May 2022, respectively.
The company reported $50.6 billion of total client cash balance, down 0.6% from April 2023 and 24.7% from May 2022. Of the total balance, $36.5 billion was insured cash and $9.7 billion was deposit cash, while the remaining was money-market balance.
LPL Financial’s recruiting efforts and solid advisor productivity will support advisory revenues. Also, it is expanding through strategic buyouts on the back of a robust balance sheet position. However, the challenging operating backdrop is a major near-term headwind.
The stock has rallied 3.4% over the past three months, outperforming 2.3% growth witnessed by the industry.
A couple of other brokerage firms that have already come out with monthly data for May are Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .
Interactive Brokers released the Electronic Brokerage segment’s performance metrics for May 2023. It reported a rise in client Daily Average Revenue Trades (DARTs) on a sequential basis.
IBKR’s total client DARTs for the month were 1,860,000, which grew 5% from the April 2023 level but declined 19% year over year.
Schwab released its monthly activity report for May 2023. Core net new assets were $20.7 billion. It reported negative core net new assets of $2.3 billion in April 2023 and net new assets of $32.8 billion in the year-earlier month.
SCHW’s total client assets were $7.65 trillion in May, up marginally from April 2023 and 5% from May 2022. Client assets receiving ongoing advisory services were $3.90 trillion, declining marginally from the prior month but rising 5% year over year.
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LPL Financial's (LPLA) May Metrics Rise on Favorable Markets
LPL Financial's (LPLA - Free Report) total brokerage and advisory assets were $1.19 trillion at the end of May 2023, increasing just 0.2% from the prior month and 6.2% year over year. The rise in LPLA’s assets balance was mainly due to decent market performance.
Of LPLA’s total assets, brokerage assets were $560.2 billion and advisory assets amounted to $629.8 billion. Brokerage assets were up 0.1% from April 2023 and 6% year over year. Advisory assets grew 0.3% from the prior month and 6.4% from May 2022.
LPL Financial’s total net new assets (NNAs) were $8.1 billion in the reported month. NNAs were $4.4 billion and $24.8 billion in April 2023 and May 2022, respectively.
The company reported $50.6 billion of total client cash balance, down 0.6% from April 2023 and 24.7% from May 2022. Of the total balance, $36.5 billion was insured cash and $9.7 billion was deposit cash, while the remaining was money-market balance.
LPL Financial’s recruiting efforts and solid advisor productivity will support advisory revenues. Also, it is expanding through strategic buyouts on the back of a robust balance sheet position. However, the challenging operating backdrop is a major near-term headwind.
The stock has rallied 3.4% over the past three months, outperforming 2.3% growth witnessed by the industry.
Image Source: Zacks Investment Research
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 already come out with monthly data for May are Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .
Interactive Brokers released the Electronic Brokerage segment’s performance metrics for May 2023. It reported a rise in client Daily Average Revenue Trades (DARTs) on a sequential basis.
IBKR’s total client DARTs for the month were 1,860,000, which grew 5% from the April 2023 level but declined 19% year over year.
Schwab released its monthly activity report for May 2023. Core net new assets were $20.7 billion. It reported negative core net new assets of $2.3 billion in April 2023 and net new assets of $32.8 billion in the year-earlier month.
SCHW’s total client assets were $7.65 trillion in May, up marginally from April 2023 and 5% from May 2022. Client assets receiving ongoing advisory services were $3.90 trillion, declining marginally from the prior month but rising 5% year over year.