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LPL Financial's (LPLA) February Metrics Rise on Upbeat Markets

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LPL Financial's (LPLA - Free Report) total brokerage and advisory assets were $1.4 trillion at the end of February 2024, increasing 3% from the prior month and 22.3% 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 $634.9 billion and advisory assets amounted to $768.4 billion. Brokerage assets increased 3.7% from January 2024 and 26.8% year over year. Advisory assets increased 2.2% from the previous month and 17.2% from February 2023.

Total net new assets (NNAs) were $6.8 billion in the reported month. NNAs were $2 billion and $5.2 billion in January 2024 and February 2023, respectively.

The company reported $46.5 billion of total client cash balance, down 1.7% from January 2024 and 17.3% from February 2023. Of the total balance, $33.2 billion was insured cash and $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 acquisitions, 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 34.3%, outperforming the industry’s growth of 23.9%.
 

Zacks Investment Research
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 February 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 February 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 February were 2,243,000, which increased 11% from January 2024 and 15% year over year.

Schwab released its monthly activity report for February 2024. The company’s core net new assets of $33.4 billion in the month soared 94% from the previous month but declined 20% from the year-ago month’s figure.

Schwab’s total client assets in February 2024 were $8.88 trillion, up 4% from the January 2024 level and 20% from February 2023. Client assets receiving ongoing advisory services were $4.5 trillion, up 3% from the prior month and 18% year over year.

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