LPL Financial Holdings Inc. (Nasdaq: LPLA), the parent of LPL Financial LLC – the nation’s largest independent broker-dealer, released its second quarter 2022 financial results and reported an advisor count of 20,871, up 780 sequentially and 1,757 year-over-year. LPL also reported that total advisory and brokerage assets decreased 4 percent year-over-year to $1.06 trillion.
Advisory assets decreased 3 percent year-over-year to $559 billion, and 11 percent from last quarter’s total of $624 billion. Advisory assets as a percentage of total assets increased to 52.5 percent, up from 51.9 percent a year ago.
Brokerage assets decreased 5 percent year-over-year to $506 billion, and 6 percent from last quarter’s total of $538.8 billion.
Total organic net new assets were $37 billion, representing 13 percent annualized growth, and $108 billion over the past 12 months, representing 10 percent annualized growth. Organic net new advisory assets were $11 billion, representing 7 percent annualized growth. Organic net new brokerage assets were $26 billion, representing 19 percent annualized growth.
Recruited assets were $44 billion. Recruited assets over the trailing 12 months were $84 billion, up approximately 5 percent from a year ago.
“We delivered another quarter of solid results,” said Matt Audette, chief financial officer. “We recorded double-digit organic growth, while successfully onboarding CUNA, substantially completing the integration of Waddell & Reed, and signing an agreement to acquire Boenning & Scattergood. Additionally, we are looking forward to onboarding People’s United Bank later this year. As we look ahead, our business momentum and financial strength position us well to continue creating long-term shareholder value.”
LPL onboarded the retail brokerage and advisory business of CUNA Brokerage Services Inc., which has $30 billion of total assets, of which $25 billion transitioned onto the LPL platform in the second quarter.
The firm also entered into an agreement to purchase the Private Client Group business of Boenning & Scattergood, a firm with approximately 40 financial advisors who serve approximately $5 billion of advisory and brokerage assets.
LPL also announced that work is underway to implement the client cash account as its primary sweep overflow vehicle by the end of the third quarter 2022.
The company also plans to accelerate investments to drive and support organic growth. “Given our improved earnings profile, we are accelerating investments to drive and support organic growth and anticipate up to $20 million of additional Core G&A in 2022. This increases our core G&A outlook range to $1,170 million to $1,195 million.”
Net income was $161 million, or $1.97 per share, during the second quarter of 2022. This compares with $119 million, or $1.46 per share, in the second quarter of 2021 and $134 million, or $1.64 per share, in the prior quarter.
Gross profit increased 18 percent year-over-year to $711 million. Core G&A increased 14 percent year-over-year to $286 million, and EBITDA increased 28 percent year-over-year to $311 million.
LPL supports more than 21,000 financial advisors, 1,100 institution-based investment programs and 500 independent RIA firms nationwide.