LPL Reports $1.21 Trillion in Advisory and Brokerage Assets in 4Q21
LPL Financial Holdings Inc. (Nasdaq: LPLA), the parent of LPL Financial LLC – the nation’s largest independent broker-dealer, reported that total advisory and brokerage assets increased 34 percent year-over-year to $1.21 trillion.
LPL Financial Holdings Inc. (Nasdaq: LPLA), the parent of LPL Financial LLC – the nation’s largest independent broker-dealer, reported that total advisory and brokerage assets increased 34 percent year-over-year to $1.21 trillion.
Advisory assets increased 39 percent year-over-year to $643 billion, while advisory assets as a percentage of total assets increased to 53.3 percent, up from 51.1 percent a year ago. Brokerage assets increased 27 percent year-over-year to $563.2 billion.
Advisor count was 19,876, up 249 from the previous quarter and 2,589 year-over-year.
Total organic net new assets for the quarter were $26 billion, translating to 9 percent annualized growth. Total organic net new assets for the year were $119 billion, translating to a 13 percent growth rate, up from 7 percent in 2020.
Acquired net new assets for 2021 were $71 billion, of which $34 billion were advisory and $37 billion were brokerage, from the acquisition of the wealth management business of Waddell & Reed.
Recruited assets for the quarter were $17 billion, up by 59 percent from a year ago. Recruited assets for the year were $89 billion, more than double a year ago.
“Looking at 2021, we are proud of what we accomplished within our framework for driving long-term shareholder value,” said Matt Audette, chief financial officer. “We invested to drive growth while staying disciplined on expenses, successfully onboarded Waddell & Reed, BMO, and M&T, and delivered the highest organic net new assets in our history. Going forward, our business momentum and financial strength position us well to continue creating long-term shareholder value.”
Net income for the fourth quarter of 2021 was $108 million, translating to diluted earnings per share of $1.32. This compares with $112 million, or $1.38 per share, in the fourth quarter of 2020 and $103 million, or $1.26 per share, in the prior quarter.
EBITDA increased 4 percent year-over-year to $225 million, and EBITDA as a percentage of gross profit was 35 percent.
LPL supports 19,876 financial advisors, 800 institution-based investment programs and 500 independent RIA firms nationwide.
