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LPL Financial (LPLA) November Metrics Rise on Upbeat Markets

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LPL Financial Holdings Inc.’s (LPLA - Free Report) total brokerage and advisory assets were $1.14 trillion at the end of November 2022, increasing 4.5% from the prior month but down 3% year over year. The rise in LPLA’s assets balance from the October level was mainly driven by upbeat market performance.

Of LPLA’s total assets, brokerage assets were $536.9 billion and advisory assets totaled $599 billion. Brokerage assets were up 3.8% from October 2022 but down 2.5% year over year. Likewise, advisory assets grew 5.2% from the prior month but declined 3.4% from November 2021.

LPL Financial’s total net new assets were $5.6 billion in the reported month. Net new assets were $4 billion and $6.9 billion in October 2022 and November 2021, respectively.

The company reported $62.5 billion of total client cash balance, down 4.1% from October 2022 but up 20.9% from November 2021. Of the total balance, $45.4 billion was insured cash and $11.5 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.

The stock has surged 35.6% over the past year against a 7.9% decline witnessed by the industry.
 

Zacks Investment Research
Image Source: Zacks Investment Research

LPLA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Competitive Landscape

A couple of other brokerage firms that have already come out with monthly data for November are Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .

Interactive Brokers’ Electronic Brokerage segment announced performance metrics for November 2022. The segment (dealing with the clearance and settlement of trades for individual and institutional clients globally) reported a decline in client Daily Average Revenue Trades (DARTs) on a sequential and a year-over-year basis.

IBKR’s total client DARTs were 1,952,000, down 1% from the October 2022 level and 30% year over year. On an annualized basis, IBKR recorded Cleared Average DARTs per customer account of 214,000. The metric decreased 2% sequentially and 45% from the prior-year period.

Schwab released its monthly activity report for November 2022. Core net new assets were $33.1 billion in the reported month, down 21% sequentially and 27% year over year. The decline was likely due to a not-so-impressive market performance.

Total client assets for SCHW were $7.32 trillion, up 5% from October 2022 but down 8% from November 2021. Likewise, client assets receiving ongoing advisory services were $3.78 trillion, rising 5% from the prior month but decreasing 3% year over year.

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