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LPL Financial's (LPLA) August Metrics Decline on Weak Markets
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LPL Financial's (LPLA - Free Report) total brokerage and advisory assets were $1.27 trillion at the end of August 2023, decreasing 0.6% from the prior month but growing 15.1% year over year. The fall in LPL Financial’s asset balance from the July level was mainly due to weak market performance.
Of LPLA’s total assets, brokerage assets were $590.5 billion and advisory assets amounted to $680.8 billion. Brokerage assets were down 0.6% from July 2023 but increased 12.5% year over year. Advisory assets declined 0.5% from the prior month but jumped 17.4% from August 2022.
LPL Financial’s total net new assets (NNAs) were $13.1 billion in the reported month. NNAs were $11 billion and $9.7 billion in July 2023 and August 2022, respectively.
The company reported $48.2 billion of total client cash balance, down 1.2% from July 2023 and 26.7% from August 2022. Of the total balance, $34.7 billion was insured cash and $9.1 billion was deposit cash, while the remaining was money-market balance.
LPL Financial’s recruiting efforts and solid advisor productivity will aid advisory revenues. The company is expanding through strategic buyouts on the back of a solid balance sheet position. However, the challenging operating backdrop is a major near-term headwind.
Over the past six months, shares of LPL Financial have rallied 17.2% compared with the industry’s upside of 4.5%.
A couple of other brokerage firms that have already come out with monthly data for August are Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .
Interactive Brokers released the Electronic Brokerage segment’s performance metrics for August 2023. It reported a decline in client Daily Average Revenue Trades (DARTs) on a sequential and year-over-year basis.
IBKR’s total client DARTs for August were 1,931,000, declining 3% from the July 2023 level and 2% year over year.
Schwab released its monthly activity report for August 2023. Because of the temporary attrition of TD Ameritrade clients and advisors, the company’s core net new assets of $4.9 billion in the reported month declined 64% from July 2023 and 89% from the prior-year month.
SCHW’s total client assets in August 2023 were $8.09 trillion, down 2% from July 2023 but up 14% from August 2022. Client assets receiving ongoing advisory services were $4.11 trillion, down 2% from the prior month and up 13% year over year.
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LPL Financial's (LPLA) August Metrics Decline on Weak Markets
LPL Financial's (LPLA - Free Report) total brokerage and advisory assets were $1.27 trillion at the end of August 2023, decreasing 0.6% from the prior month but growing 15.1% year over year. The fall in LPL Financial’s asset balance from the July level was mainly due to weak market performance.
Of LPLA’s total assets, brokerage assets were $590.5 billion and advisory assets amounted to $680.8 billion. Brokerage assets were down 0.6% from July 2023 but increased 12.5% year over year. Advisory assets declined 0.5% from the prior month but jumped 17.4% from August 2022.
LPL Financial’s total net new assets (NNAs) were $13.1 billion in the reported month. NNAs were $11 billion and $9.7 billion in July 2023 and August 2022, respectively.
The company reported $48.2 billion of total client cash balance, down 1.2% from July 2023 and 26.7% from August 2022. Of the total balance, $34.7 billion was insured cash and $9.1 billion was deposit cash, while the remaining was money-market balance.
LPL Financial’s recruiting efforts and solid advisor productivity will aid advisory revenues. The company is expanding through strategic buyouts on the back of a solid balance sheet position. However, the challenging operating backdrop is a major near-term headwind.
Over the past six months, shares of LPL Financial have rallied 17.2% compared with the industry’s upside of 4.5%.
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 August are Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .
Interactive Brokers released the Electronic Brokerage segment’s performance metrics for August 2023. It reported a decline in client Daily Average Revenue Trades (DARTs) on a sequential and year-over-year basis.
IBKR’s total client DARTs for August were 1,931,000, declining 3% from the July 2023 level and 2% year over year.
Schwab released its monthly activity report for August 2023. Because of the temporary attrition of TD Ameritrade clients and advisors, the company’s core net new assets of $4.9 billion in the reported month declined 64% from July 2023 and 89% from the prior-year month.
SCHW’s total client assets in August 2023 were $8.09 trillion, down 2% from July 2023 but up 14% from August 2022. Client assets receiving ongoing advisory services were $4.11 trillion, down 2% from the prior month and up 13% year over year.