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LPL Financial (LPLA) April Metrics Fall From March on Weak Markets

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LPL Financial's (LPLA - Free Report) total brokerage and advisory assets were $1.41 trillion at the end of April 2024, decreasing 1.9% from the prior month but jumping 19% year over year. The fall in the company’s asset balance from March 2024 was mainly due to a weak market performance.

Of LPLA’s total assets, brokerage assets were $637.5 billion and advisory assets amounted to $775.5 billion. Brokerage assets declined 1.6% from March 2024 but grew 13.9% year over year. Likewise, advisory assets fell 2.2% from the previous month but surged 23.4% from April 2023.

Total net new assets (NNAs) were $12 billion in the reported month and included $5 billion of acquired NNAs from the acquisition of Crown Capital.

Organic NNA for April was $7 billion. NNAs were $7.9 billion and $4.4 billion in March 2024 and April 2023, respectively.

The company reported $45.7 billion of total client cash balance, down 1.3% from March 2024 and 9.3% from April 2023. Of the total balance, $32.5 billion was insured cash and $9.1 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 38.6%, outperforming the industry’s growth of 37%.

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 April 2024 are Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .

Interactive Brokers has released the Electronic Brokerage segment’s performance metrics for April 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 year-over-year basis. However, the metric declined sequentially.

IBKR’s total client DARTs for April were 2,339,000, which increased 32.5% from April 2023 but dipped 3% from the last month.

Schwab has reported its monthly activity report for April 2024. The company’s core net new assets of $1 billion declined 98% from the previous month’s level but increased 143% from the prior-year month.

Schwab’s total client assets in April 2024 were $8.85 trillion, down 3% from the March 2024 level but up 16% from April 2023. Client assets receiving ongoing advisory services were $4.50 trillion, down 3% from the prior month but up 15% year over year.

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