LPL Financial Q3 2024 Earnings Per Share Up 16.5% Year-Over-Year
LPL Financial Holdings Inc. announced results for its third quarter ended Sept. 30, 2024, reporting net income of $255 million or $3.39 per share. This compares with $224 million, or $2.91 per share (a 16.5% increase per share), in the third quarter of 2023 and $244 million, or $3.23 per share, in the prior quarter.
“I joined LPL with the mandate to accelerate our growth, and for the past six years, have worked closely with Matt Audette and the rest of our leadership team, to set our strategic vision, and to build and execute on the plan to achieve that vision.” said Rich Steinmeier, chief executive officer.
Steinmeier just wrapped up his first month as CEO, having assumed the role on Oct. 1, when the board of directors terminated former LPL president and CEO Dan H. Arnold for “violating LPL’s commitment to a respectful workplace.” During the month, the board also named Audette as president and chief financial officer, which expanded his previous role as CFO and head of business operations.
“Looking forward, our opportunity is clear – to assert our leadership and shape both the advisor and institutional markets. Our focus is on creating the culture, workplace environment, and capabilities, to achieve sustainable outperformance through becoming an indispensable partner to our advisers and institutions, while delivering long-term value to shareholders.”
LPL’s total advisory and brokerage assets increased 29% year-over-year to $1.6 trillion – $892 billion advisory, $708 billion brokerage. Advisory assets as a percentage of total assets increased to 56%, up from 53.5% one year ago. Total organic new assets for the company were $27 billion, which represented 7% annualized growth. LPL’s adviser account was 23,686, up 1,282 from the prior year.
In terms of mergers and acquisitions, LPL closed the acquisition of Atria Wealth Solutions last month, which supports approximately 2,200 advisers and about 160 banks and credit unions, managing nearly $110 billion of brokerage and advisory assets. Conversion is expected to be completed in mid-2025.
Other notable mergers included LPL’s acquisition of The Investment Center Inc. – with approximately 240 advisers and $9 billion of brokerage and advisory assets – and the continued movement and onboarding of Prudential Advisors and its approximate $50 billion in client assets during the fourth quarter.
According to LPL, it plans to resume its share repurchase program in Q4 2024, with an estimated $100 million of repurchases planned through the year’s end. The board also declared a $0.30 per share dividend to be paid on Dec. 2, 2024, to all stockholders of record as of Nov. 14, 2024.
“We’re operating from a position of strength with a leadership team that is focused on supporting our advisers’ success through innovative solutions,” said Audette. “In my expanded role, I look forward to the opportunity to help extend our leadership position in the adviser-mediated markets and to enhance value for our shareholders.”
LPL Financial Holdings Inc. serves more than 23,600 financial advisers, including advisers at more than 1,000 enterprises and 580 registered investment adviser firms nationwide. Headquartered in San Diego, its total advisory and brokerage assets totaled $1.6 trillion as of Sept. 30, 2024.
