LPL Financial reported its latest earnings after the markets closed Thursday and showed increases in key metrics including net income, total assets, and both organic and recruited growth.
The broker-dealer’s total assets gained 25% year-over-year to more than $1.8 trillion thanks to record organic net new assets of $71 billion, up 16% on an annualized basis. This was helped by $27 billion from Prudential which was fully integrated in November 2024, and $16 billion from Wintrust which was integrated in January 2025.
Meanwhile, recruited assets were $39 billion, up 91% from a year ago, recruited assets over the trailing twelve months were a record of $167 billion.
Client cash balances were $53 billion, a decrease of $2 billion sequentially and an increase of $7 billion year-over-year, representing 3% of all assets, down from 3.2% in the prior quarter and year.
The firm also engaged in some significant M&A including the agreement to acquire Commonwealth as the quarter ended and in April, the agreement to acquire the broker-dealer business of First Horizon.
"In the first quarter, we delivered solid business performance and financial results," said Matt Audette, president and CFO. "We onboarded Prudential and Wintrust and are preparing to onboard First Horizon later this year. As a complement to our strong organic growth, we closed and onboarded the acquisition of The Investment Center in March, continue to prepare to onboard our Atria advisors, and lastly, entered into an agreement to acquire Commonwealth Financial Network. Looking ahead, our business momentum and financial strength position us well to continue delivering shareholder value."
Net income in the first quarter was up 11% year-over-year to $319 million, beating the $271 million of the previous quarter. First quarter earnings beat consensus: Adjusted EPS was $5.15, $0.49 above consensus of $4.66.
"It’s been a strong start to the year for LPL," said Rich Steinmeier, CEO. "We delivered another quarter of strong business performance, reported excellent financial results, and reached an agreement to acquire Commonwealth, significantly accelerating our progress toward our vision to be the best firm in wealth management."
The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.
The latest snapshot report reveals large firms overwhelmingly account for branches and registrants as trend of net exits from FINRA continues.
Siding with the primary contact in a marriage might make sense at first, but having both parties' interests at heart could open a better way forward.
With more than $13 billion in assets, American Portfolios Advisors closed last October.
Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
