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LPL Financial's (LPLA) November Metrics Rise on Upbeat Markets
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LPL Financial's (LPLA - Free Report) total brokerage and advisory assets were $1.30 trillion at the end of November 2023, increasing 6.6% from the prior month and 14.5% year over year. The rise in the company’s asset balance was mainly due to solid market performance.
Of LPLA’s total assets, brokerage assets were $598.2 billion and advisory assets amounted to $702.3 billion. Brokerage assets increased 5.7% from October 2023 and 11.4% year over year. Advisory assets gained 7.5% from the prior month and 17.2% from November 2022.
Total net new assets (NNAs) were $8.4 billion in the reported month. NNAs were $7.2 billion and $5.6 billion in October 2023 and November 2022, respectively.
The company reported $47.3 billion of total client cash balance, up 0.9% from October 2023 but down 24.3% from November 2022. Of the total balance, $33.8 billion was insured cash and $8.9 billion was deposit cash, while the remaining was money-market and client-cash balance.
LPL Financial’s recruiting efforts and solid advisor productivity will likely keep supporting advisory revenues. The company is expected to keep expanding through strategic buyouts with a robust balance sheet position. However, the challenging operating backdrop remains a major near-term headwind.
Over the past three months, shares of LPLA have declined 11.5% against the industry’s growth of 8%.
Image Source: Zacks Investment Research
LPLA currently carries a Zacks Rank #5 (Strong Sell).
A couple of other brokerage firms that have come out with monthly data for November are Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .
Interactive Brokers released its Electronic Brokerage segment’s performance metrics for November 2023. The segment deals with the clearance and settlement of trades for individual and institutional clients globally. It reported a decline in client Daily Average Revenue Trades (DARTs) on a sequential and year-over-year basis.
For IBKR, total client DARTs for the month were 1,898,000, declining 2% from the October 2023 level and 3% year over year.
Schwab released its monthly activity report for November 2023.
The company’s core net new assets of $21.7 billion jumped 92% from the previous month’s levels but declined 34% from the prior-year month’s figures. SCHW’s total client assets in November 2023 were $8.18 trillion, up 7% from October 2023 levels and 12% from November 2022 levels.
Client assets receiving ongoing advisory services were $4.16 trillion, rising 7% from the prior month and 10% year over year.
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LPL Financial's (LPLA) November Metrics Rise on Upbeat Markets
LPL Financial's (LPLA - Free Report) total brokerage and advisory assets were $1.30 trillion at the end of November 2023, increasing 6.6% from the prior month and 14.5% year over year. The rise in the company’s asset balance was mainly due to solid market performance.
Of LPLA’s total assets, brokerage assets were $598.2 billion and advisory assets amounted to $702.3 billion. Brokerage assets increased 5.7% from October 2023 and 11.4% year over year. Advisory assets gained 7.5% from the prior month and 17.2% from November 2022.
Total net new assets (NNAs) were $8.4 billion in the reported month. NNAs were $7.2 billion and $5.6 billion in October 2023 and November 2022, respectively.
The company reported $47.3 billion of total client cash balance, up 0.9% from October 2023 but down 24.3% from November 2022. Of the total balance, $33.8 billion was insured cash and $8.9 billion was deposit cash, while the remaining was money-market and client-cash balance.
LPL Financial’s recruiting efforts and solid advisor productivity will likely keep supporting advisory revenues. The company is expected to keep expanding through strategic buyouts with a robust balance sheet position. However, the challenging operating backdrop remains a major near-term headwind.
Over the past three months, shares of LPLA have declined 11.5% against the industry’s growth of 8%.
Image Source: Zacks Investment Research
LPLA currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Competitive Landscape
A couple of other brokerage firms that have come out with monthly data for November are Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .
Interactive Brokers released its Electronic Brokerage segment’s performance metrics for November 2023. The segment deals with the clearance and settlement of trades for individual and institutional clients globally. It reported a decline in client Daily Average Revenue Trades (DARTs) on a sequential and year-over-year basis.
For IBKR, total client DARTs for the month were 1,898,000, declining 2% from the October 2023 level and 3% year over year.
Schwab released its monthly activity report for November 2023.
The company’s core net new assets of $21.7 billion jumped 92% from the previous month’s levels but declined 34% from the prior-year month’s figures. SCHW’s total client assets in November 2023 were $8.18 trillion, up 7% from October 2023 levels and 12% from November 2022 levels.
Client assets receiving ongoing advisory services were $4.16 trillion, rising 7% from the prior month and 10% year over year.