Yahoo Finance LPL Financial's (LPLA) February Metrics Rise on Upbeat Markets
LPL Financial's LPLA total brokerage and advisory assets were $1.4 trillion at the end of February 2024, increasing 3% from the prior month and 22.3% year over year. The rise in the company’s asset balance was mainly due to a robust market performance.
Of LPLA’s total assets, brokerage assets were $634.9 billion and advisory assets amounted to $768.4 billion. Brokerage assets increased 3.7% from January 2024 and 26.8% year over year. Advisory assets increased 2.2% from the previous month and 17.2% from February 2023.
Total net new assets (NNAs) were $6.8 billion in the reported month. NNAs were $2 billion and $5.2 billion in January 2024 and February 2023, respectively.
The company reported $46.5 billion of total client cash balance, down 1.7% from January 2024 and 17.3% from February 2023. Of the total balance, $33.2 billion was insured cash and $9 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 34.3%, outperforming the industry’s growth of 23.9%.
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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
A couple of other brokerage firms that have come out with data for February 2024 are Interactive Brokers Group IBKR and Charles Schwab SCHW.
Interactive Brokers released the Electronic Brokerage segment’s performance metrics for February 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 sequential and year-over-year basis.
IBKR’s total client DARTs for February were 2,243,000, which increased 11% from January 2024 and 15% year over year.
Schwab released its monthly activity report for February 2024. The company’s core net new assets of $33.4 billion in the month soared 94% from the previous month but declined 20% from the year-ago month’s figure.
Schwab’s total client assets in February 2024 were $8.88 trillion, up 4% from the January 2024 level and 20% from February 2023. Client assets receiving ongoing advisory services were $4.5 trillion, up 3% from the prior month and 18% year over year.
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The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report
LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report
