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LPL Financial (LPLA) July Metrics Up 2.1% on Favorable Markets
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LPL Financial's (LPLA - Free Report) total brokerage and advisory assets were $1.53 trillion at the end of July 2024, increasing 2.1% from the prior month and 19.6% year over year. The rise in the company’s asset balance from April 2024 was mainly driven by a robust market performance.
Of LPLA’s total assets, brokerage assets were $678.7 billion and advisory assets amounted to $850.6 billion. Brokerage assets grew 1.5% from June 2024 and 14.3% year over year. Likewise, advisory assets rose 2.6% from the previous month and 24.3% from July 2023.
Total net new assets (NNAs) were $9 billion in the reported month. NNAs were $10.8 billion in June 2024 and $11 billion in July 2023. NNAs in July 2024 included $0.6 billion of assets that were off-boarded as part of the previously disclosed planned separation from misaligned large OSJs. Excluding these assets, total net new assets were $9.5 billion.
The company reported $44.5 billion of total client cash balance in July, stable with the prior month and down 8.9% from July 2023. Of the total balance, $31.1 billion was insured cash and $9.1 billion was deposit cash, while the remaining was money-market and client cash balance.
Conclusion
LPL Financial’s recruiting efforts and solid advisor productivity will likely support advisory revenues. The company is expected to keep expanding through strategic acquisitions, which will help diversify operations. However, the challenging operating backdrop remains a near-term headwind.
So far this year, LPLA’s shares have lost 3.6% against the industry’s growth of 14%.
Interactive Brokers Group, Inc. (IBKR - Free Report) has released the Electronic Brokerage segment’s performance metrics for July 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).
IBKR’s total client DARTs for July were 2,756,000, which increased 38.4% from July 2023 and 11.6% from last month.
Charles Schwab (SCHW - Free Report) reported its monthly activity report for July 2024. The company’s core net new assets of $29 billion surged substantially from $13.7 billion recorded in the prior-year month but was unchanged from the previous month.
SCHW’s total client assets in July 2024 were $9.57 trillion, up 2% from the June 2024 level and 16% from July 2023. Client assets receiving ongoing advisory services were $4.83 trillion, rising 2% from the prior month and 16% year over year.
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LPL Financial (LPLA) July Metrics Up 2.1% on Favorable Markets
LPL Financial's (LPLA - Free Report) total brokerage and advisory assets were $1.53 trillion at the end of July 2024, increasing 2.1% from the prior month and 19.6% year over year. The rise in the company’s asset balance from April 2024 was mainly driven by a robust market performance.
Of LPLA’s total assets, brokerage assets were $678.7 billion and advisory assets amounted to $850.6 billion. Brokerage assets grew 1.5% from June 2024 and 14.3% year over year. Likewise, advisory assets rose 2.6% from the previous month and 24.3% from July 2023.
Total net new assets (NNAs) were $9 billion in the reported month. NNAs were $10.8 billion in June 2024 and $11 billion in July 2023. NNAs in July 2024 included $0.6 billion of assets that were off-boarded as part of the previously disclosed planned separation from misaligned large OSJs. Excluding these assets, total net new assets were $9.5 billion.
The company reported $44.5 billion of total client cash balance in July, stable with the prior month and down 8.9% from July 2023. Of the total balance, $31.1 billion was insured cash and $9.1 billion was deposit cash, while the remaining was money-market and client cash balance.
Conclusion
LPL Financial’s recruiting efforts and solid advisor productivity will likely support advisory revenues. The company is expected to keep expanding through strategic acquisitions, which will help diversify operations. However, the challenging operating backdrop remains a near-term headwind.
So far this year, LPLA’s shares have lost 3.6% against the industry’s growth of 14%.
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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
Interactive Brokers Group, Inc. (IBKR - Free Report) has released the Electronic Brokerage segment’s performance metrics for July 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).
IBKR’s total client DARTs for July were 2,756,000, which increased 38.4% from July 2023 and 11.6% from last month.
Charles Schwab (SCHW - Free Report) reported its monthly activity report for July 2024. The company’s core net new assets of $29 billion surged substantially from $13.7 billion recorded in the prior-year month but was unchanged from the previous month.
SCHW’s total client assets in July 2024 were $9.57 trillion, up 2% from the June 2024 level and 16% from July 2023. Client assets receiving ongoing advisory services were $4.83 trillion, rising 2% from the prior month and 16% year over year.