LPL earnings spiked in second quarter

LPL Investment Holdings Inc. saw an 8.9% increase in its second-quarter profits, mostly on the back of cost cutting and the recent improvements in market conditions.
AUG 12, 2009
LPL Investment Holdings Inc. saw an 8.9% increase in its second-quarter profits, mostly on the back of cost cutting and the recent improvements in market conditions. In the earnings report it released Tuesday, Boston-based LPL Investment Holdings, the largest network of independent broker-dealers, said net income was $15.6 million for the quarter that ended in June, compared with $14.3 million for the same quarter one year earlier. For the first six months of the year, net income was $30.4 million, an increase of 17% from the first six months of 2008. “The S&P 500 experienced a modest recovery during the three months ended June 30, 2009, to reach levels comparable with those seen toward the end of 2008,” the firm said in its filing with the Securities and Exchange Commission. “Such gains provided retail investors with the first market-driven improvement in their asset and account balances since the second quarter of 2008.” Revenues from commissions and advisory fees were down for the quarter, 16.7% and 22.9%, respectively, when compared with the same period in 2008. Total revenues dropped 17.9%, to $669 million. The firm is also cutting expenses, and, like many financial services firms, recently laid off workers. The firm reduced total expenses by 18.8% during the second quarter, to $611 million.

Latest News

Mercer Advisors lands third-biggest deal to date with Full Sail Capital
Mercer Advisors lands third-biggest deal to date with Full Sail Capital

With over 600 clients, the $71 billion RIA acquirer's latest partner marks its second transaction in Oklahoma.

Fintech bytes: FP Alpha rolls out estate insights feature
Fintech bytes: FP Alpha rolls out estate insights feature

Also, wealth.com enters Commonwealth's tech stack, while Tifin@work deepens an expanded partnership.

Morgan Stanley, Atria job cut details emerge
Morgan Stanley, Atria job cut details emerge

Back office workers and support staff are particularly vulnerable when big broker-dealers lay off staff.

Envestnet taps Atria alum Sean Meighan to sharpen RIA focus
Envestnet taps Atria alum Sean Meighan to sharpen RIA focus

The fintech giant is doubling down on its strategy to reach independent advisors through a newly created leadership role.

LPL, Evercore welcome West Coast breakaways
LPL, Evercore welcome West Coast breakaways

The two firms are strengthening their presence in California with advisor teams from RBC and Silicon Valley Bank.

SPONSORED Beyond the dashboard: Making wealth tech human

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

SPONSORED The evolution of private credit

From direct lending to asset-based finance to commercial real estate debt.