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LPL Financial (LPLA) May Metrics Up as Market Volatility Rises
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LPL Financial Holdings Inc.’s (LPLA - Free Report) total brokerage and advisory assets were $1.12 trillion at the end of May 2022, increasing 2.2% from the prior month and 4.3% year over year. The rise in LPLA’s assets balance was mainly due to heightened market volatility and higher net new assets balance.
Of LPLA’s total assets, brokerage assets were $523.6 billion and advisory assets totaled $591.8 billion. Brokerage assets were up 3.7% and 2.6% from April 2022 and May 2021 levels, respectively. Advisory assets grew almost 1% from the prior month and 5.9% year over year.
LPL Financial’s total net new assets were $24.8 billion in the reported month. Net new assets were $1.9 billion and $6.1 billion in April 2022 and May 2021, respectively.
LPL Financial reported $67.1 billion of total client cash balance, up 8.6% from the April 2022-level and 40.4% from May 2021. Of the total balance, $37.3 billion was insured cash and $11 billion was deposit cash, while the remaining was money-market balance.
LPL Financial’s recruiting efforts and solid advisor productivity will aid advisory revenues. Also, it is expanding through strategic buyouts on the back of a solid balance sheet position.
Shares of LPL Financial have rallied 17.8% so far this year against a 26% decline witnessed by the industry.
A couple of other brokerage firms that have come out with monthly data are Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .
Interactive Brokers’ Electronic Brokerage segment announced performance metrics for May 2022. The segment (dealing with the clearance and settlement of trades for individual and institutional clients globally) reported a rise in client Daily Average Revenue Trades (DARTs) on a sequential and a year-over-year basis.
Total client DARTs for the month were 2,297,000, up 4% from the April 2022 level and 2% year over year. On an annualized basis, IBKR recorded Cleared Average DARTs per customer account of 274,000. The metric increased 2% sequentially but declined 27% from the prior-year period.
Schwab released its activity report for May 2022. Total client assets were $7.30 trillion, stable sequentially but down 1% from May 2021.
SCHW’s chief financial officer, Peter Crawford noted, “Schwab’s strong business momentum and rising interest rates are helping power our diversified financial model.”
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LPL Financial (LPLA) May Metrics Up as Market Volatility Rises
LPL Financial Holdings Inc.’s (LPLA - Free Report) total brokerage and advisory assets were $1.12 trillion at the end of May 2022, increasing 2.2% from the prior month and 4.3% year over year. The rise in LPLA’s assets balance was mainly due to heightened market volatility and higher net new assets balance.
Of LPLA’s total assets, brokerage assets were $523.6 billion and advisory assets totaled $591.8 billion. Brokerage assets were up 3.7% and 2.6% from April 2022 and May 2021 levels, respectively. Advisory assets grew almost 1% from the prior month and 5.9% year over year.
LPL Financial’s total net new assets were $24.8 billion in the reported month. Net new assets were $1.9 billion and $6.1 billion in April 2022 and May 2021, respectively.
LPL Financial reported $67.1 billion of total client cash balance, up 8.6% from the April 2022-level and 40.4% from May 2021. Of the total balance, $37.3 billion was insured cash and $11 billion was deposit cash, while the remaining was money-market balance.
LPL Financial’s recruiting efforts and solid advisor productivity will aid advisory revenues. Also, it is expanding through strategic buyouts on the back of a solid balance sheet position.
Shares of LPL Financial have rallied 17.8% so far this year against a 26% decline witnessed by the industry.
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 come out with monthly data are Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .
Interactive Brokers’ Electronic Brokerage segment announced performance metrics for May 2022. The segment (dealing with the clearance and settlement of trades for individual and institutional clients globally) reported a rise in client Daily Average Revenue Trades (DARTs) on a sequential and a year-over-year basis.
Total client DARTs for the month were 2,297,000, up 4% from the April 2022 level and 2% year over year. On an annualized basis, IBKR recorded Cleared Average DARTs per customer account of 274,000. The metric increased 2% sequentially but declined 27% from the prior-year period.
Schwab released its activity report for May 2022. Total client assets were $7.30 trillion, stable sequentially but down 1% from May 2021.
SCHW’s chief financial officer, Peter Crawford noted, “Schwab’s strong business momentum and rising interest rates are helping power our diversified financial model.”