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The Charles Schwab Corporation (SCHW) - free report >>
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The Charles Schwab Corporation (SCHW) - free report >>
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LPL Financial's (LPLA) July Metrics Rise on Upbeat Markets
LPL Financial's (LPLA - Free Report) total brokerage and advisory assets were $1.28 trillion at the end of July 2023, increasing 3.1% from the prior month and 13.7% year over year. The rise in LPL Financial’s asset balance was mainly due to solid market performance.
Of LPLA’s total assets, brokerage assets were $594 billion, and advisory assets amounted to $684.4 billion. Brokerage assets were up 2.7% from June 2023 and 11.9% year over year. Advisory assets grew 3.4% from the prior month and 15.3% from July 2022.
LPL Financial’s total net new assets (NNAs) were $11 billion in the reported month. NNAs were $9.2 billion and $4.8 billion in June 2023 and July 2022, respectively.
The company reported $48.8 billion of total client cash balance, down 2.4% from June 2023 and 29.7% from July 2022. Of the total balance, $35.1 billion was insured cash and $9.1 billion was deposit cash, while the remaining was money-market balance.
LPL Financial’s recruiting efforts and solid advisor productivity will support advisory revenues. The company is expanding through strategic buyouts with a robust balance sheet position. However, the challenging operating backdrop is a major near-term headwind.
The stock has rallied 10.7% over the past three months, outperforming 8.7% growth witnessed in 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.
A Competitive Landscape
A couple of other brokerage firms that have already come out with monthly data for July are Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .
Interactive Brokers Group’s Electronic Brokerage segment announced performance metrics for July 2023. 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 1,991,000, which grew 2% from the June 2023 level and 9% year over year.
Schwab released its monthly activity report for July 2023. Core NNAs of $13.7 billion reflected a decline of 59% from the previous month and 57% from the prior-year month.
SCHW’s total client assets were $8.24 trillion, up 3% from June 2023 and 13% from July 2022. Client assets receiving ongoing advisory services were $4.18 trillion, rising 3% from the prior month and 12% year over year.