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LPL Financial's (LPLA) January Metrics Rise on Upbeat Markets
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LPL Financial's (LPLA - Free Report) total brokerage and advisory assets were $1.36 trillion at the end of January 2024, increasing 0.6% from the prior month and 16.9% year over year. The rise in the company’s asset balance was mainly due to a robust market performance.
Of LPLA’s total assets, brokerage assets were $621.1 billion and advisory assets amounted to $740.7 billion. Brokerage assets increased 0.5% from December 2023 and 13% year over year. Advisory assets increased 0.7% from the previous month and 20.4% from January 2023.
Total net new assets (NNAs) were $2 billion in the reported month. NNAs were $9.2 billion and $8.6 billion in December 2023 and January 2023, respectively.
The company reported $47.3 billion of total client cash balance, down 2.5% from December 2023 and 20.8% from January 2023. Of the total balance, $33.7 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 year, LPLA shares have gained 6.2% against the industry’s decline of 3.7%.
A couple of other brokerage firms that have come out with data for January 2024 are Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .
Interactive Brokers released the Electronic Brokerage segment’s performance metrics for January 2024. The segment deals with the clearance and settlement of trades for individual and institutional clients globally. It reported a rise in client Daily Average Revenue Trades (DARTs) on a sequential and year-over-year basis.
IBKR’s total client DARTs for the month were 2,201,000, which increased 12% from December 2023 and 11% year over year.
Schwab released its monthly activity report for January 2024.
The company’s core net new assets of $17.2 billion declined 60% from the previous month’s level and 52% from the prior-year month’s figure.
SCHW’s total client assets were $8.52 trillion, relatively stable with the December 2023 level and up 14% from January 2023. Client assets receiving ongoing advisory services were $4.36 trillion, marginally up from the prior month and rising 13% year over year.
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LPL Financial's (LPLA) January Metrics Rise on Upbeat Markets
LPL Financial's (LPLA - Free Report) total brokerage and advisory assets were $1.36 trillion at the end of January 2024, increasing 0.6% from the prior month and 16.9% year over year. The rise in the company’s asset balance was mainly due to a robust market performance.
Of LPLA’s total assets, brokerage assets were $621.1 billion and advisory assets amounted to $740.7 billion. Brokerage assets increased 0.5% from December 2023 and 13% year over year. Advisory assets increased 0.7% from the previous month and 20.4% from January 2023.
Total net new assets (NNAs) were $2 billion in the reported month. NNAs were $9.2 billion and $8.6 billion in December 2023 and January 2023, respectively.
The company reported $47.3 billion of total client cash balance, down 2.5% from December 2023 and 20.8% from January 2023. Of the total balance, $33.7 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 year, LPLA shares have gained 6.2% against the industry’s decline of 3.7%.
Image Source: Zacks Investment Research
Currently, LPL Financial 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 data for January 2024 are Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .
Interactive Brokers released the Electronic Brokerage segment’s performance metrics for January 2024. The segment deals with the clearance and settlement of trades for individual and institutional clients globally. It reported a rise in client Daily Average Revenue Trades (DARTs) on a sequential and year-over-year basis.
IBKR’s total client DARTs for the month were 2,201,000, which increased 12% from December 2023 and 11% year over year.
Schwab released its monthly activity report for January 2024.
The company’s core net new assets of $17.2 billion declined 60% from the previous month’s level and 52% from the prior-year month’s figure.
SCHW’s total client assets were $8.52 trillion, relatively stable with the December 2023 level and up 14% from January 2023. Client assets receiving ongoing advisory services were $4.36 trillion, marginally up from the prior month and rising 13% year over year.