LPL aims to boost profit through Uvest integration

LPL Investment Holdings Inc. expects to save up to $12 million next year by moving brokers in its subsidiary Uvest Financial Services Group Inc. to LPL's proprietary clearing platform
OCT 20, 2011
LPL Investment Holdings Inc. expects to save up to $12 million next year by moving brokers in its subsidiary Uvest Financial Services Group Inc. to LPL's proprietary clearing platform. The company announced the move last Monday in a statement. About 500 representatives and advisers are affiliated with Uvest, a broker-dealer that primarily serves financial institutions such as banks and credit unions. “We expect this integration will improve our company's pretax profitability by approximately $10 million to $12 million per year, beginning in 2012, through operational efficiencies and revenue opportunities,” said Michael Herley, a spokesman for LPL. Uvest currently clears its brokers' trades through Pershing LLC, the industry's biggest clearing firm. One securities analyst likes LPL's move to consolidate operations. In a note to clients, Citigroup Inc.'s William Katz said that such efficiency moves should increase pretax income by roughly 6 cents a share on an after-tax basis. Citigroup is maintaining its earnings-per-share forecast for LPL in 2011 at $1.74 a share. But the bank is raising its earnings-per-share expectations for the broker-dealer by 6 cents to $2.20 a share next year. “We are increasingly warming to the story and see the stock defensive to a further market correction,” Mr. Katz wrote in a note to clients. “However, we look for a better entry, given limited upside to our revised target and potentially aggressive consensus expectations.” E-mail Bruce Kelly at [email protected].

Latest News

Social Security trustees see one less year in insolvency countdown, project shortfall to start 2034
Social Security trustees see one less year in insolvency countdown, project shortfall to start 2034

New report shows dimmed outlook for benefits to retirees and disabled Americans, creating further pressure for federal tax hikes or more borrowing.

NY Republican Stefanik presses SEC to probe Harvard bond sale
NY Republican Stefanik presses SEC to probe Harvard bond sale

Open letter to SEC Chair Paul Atkins questions whether the Ivy League university withheld material information prior to its $750 million taxable bond offering.

Ex-LPL leader re-emerges at The Wealth Consulting Group
Ex-LPL leader re-emerges at The Wealth Consulting Group

The Las Vegas-based hybrid RIA overseeing $8.8 billion in assets has named Andy Kalbaugh president to help scale its advisor platform.

Envestnet extends investment offerings with new alts model portfolios
Envestnet extends investment offerings with new alts model portfolios

The wealth tech giant – in collaboration with Fidelity, BlackRock, State Street, and Franklin Templeton – is offering its advisor and wealth firm users more ways to diversify.

Just as wealth industry M&A was picking up, economic uncertainty could kill it again
Just as wealth industry M&A was picking up, economic uncertainty could kill it again

Deal volume increased post-election but now caution has taken over.

SPONSORED RILAs bring stability, growth during volatile markets

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.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave