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LPL Grows Advisor Count to 21,275 in 2022; Earning Per Share Up 85%

LPL Financial LLC, the nation’s largest independent broker-dealer, announced results for its fourth quarter 2022, reporting a net income of $319 million, or $3.95 per share.

This compares with $108 million, or $1.32 per share, in the fourth quarter of 2021 and $232 million, or $2.86 per share, in the prior quarter.

“In 2022, we remained focused on our mission of taking care of our advisors, so they can take care of their clients,” said Dan Arnold, president and chief executive officer. “This focus drove continued business growth, market share gains, and solid financial results. As we look ahead, we continue to strive to be the best at empowering advisors – to deliver great advice to their clients and to be great operators of their businesses.”

The company reported that recruited assets for the year were $82 billion, which is down approximately 8% from a year ago. LPL’s advisor count was 21,275, up 231 sequentially and 1,399 year-over-year.

Full-year net income was $846 million, which translates to diluted earnings per share of $10.40, up 85% from 2021.

Key Updates:

  • Enterprises:

LPL announced an agreement with Commerce Bank to transition support of Commerce Financial Advisors to LPL’s Institution Services platform, which is expected to onboard around mid-year. Commerce supports 30 financial advisors who collectively serve $4.4 billion of brokerage and advisory assets.

  • M&A:

In January 2023, LPL closed on the acquisition of the Private Client Group business of Boenning & Scattergood, a firm with 30 financial advisors who serve $4 billion of brokerage and advisory assets.

In January 2023, as The DI Wire reported, LPL closed on the acquisition of Financial Resources Group Investment Services, an LPL branch office supporting 800 financial advisors and 85 financial institutions, serving $40 billion of brokerage and advisory assets

“Looking at 2022, we are proud of what we accomplished within our framework for driving long-term shareholder value,” said Matt Audette, chief financial officer. “We continued to grow assets organically in both our traditional and new markets, successfully onboarded new enterprise clients, announced two strategic acquisitions, and developed our new liquidity & succession capability, including closing on our first few transactions. Going forward, our business momentum and financial strength position us well to continue creating long-term shareholder value.”

LPL supports more than 21,000 financial advisors, 1,100 institution-based investment programs and 500 independent RIA firms nationwide.

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