LPL Financial Holdings Inc. (Nasdaq: LPLA), the parent of LPL Financial LLC – the nation’s largest independent broker-dealer, released its first quarter 2022 financial results and reported an advisor count of 20,091, up 215 sequentially and 2,419 year-over-year.
LPL also reported that total advisory and brokerage assets increased 21 percent year-over-year to $1.16 trillion. In the previous quarter, advisory and brokerage assets totaled nearly $1.21 trillion, representing a quarter-over-quarter decline of 4 percent.
Advisory assets increased 26 percent year-over-year to $624 billion, while advisory assets as a percentage of total assets increased to 53.7 percent, up from 51.8 percent a year ago. Brokerage assets totaled 538.8 billion, an increase of 17 percent year-over-year.
Quarter-over-quarter, advisory assets decreased 3 percent from $643.2 billion to $624.3 billion, while brokerage assets declined 4 percent from $563.2 billion to $538.8 billion.
Total organic net new assets for the quarter were $18 billion, translating to 6 percent annualized growth. Over the past 12 months, total organic net new assets were $107 billion, translating to 11 percent annualized growth.
Recruited assets were $10 billion for the quarter. Recruited assets over the trailing 12 months were $76 billion, up approximately 34 percent from a year ago.
“As we move into 2022, we remain focused on serving our advisors, growing our business, and delivering shareholder value,” said Matt Audette, chief financial officer. “Additionally, we are looking forward to onboarding CUNA later this quarter and People’s in the second half of this year. We are excited by our strong and growing pipeline, positioning us to drive additional growth and long-term shareholder value.”
CUNA Brokerage Services supports 550 financial advisors across almost 300 credit unions that collectively serve $36 billion in brokerage and advisory assets.
In July 2020, M&T Bank Corporation (NYSE: MTB) chose LPL to support its retail brokerage and advisory business. M&T recently acquired People’s United Bank, which supports roughly 30 financial advisors who collectively serve $6 billion in brokerage and advisory assets.
Net income for the quarter was $134 million, up 3 percent from a year ago and translating to diluted earnings per share of $1.64, up 3 percent from a year ago.
Gross profit increased 15 percent year-over-year to $669 million. EBITDA of $267 million increased 10 percent year-over-year, and EBITDA as a percentage of gross profit was 40 percent.
LPL supports more than 20,000 financial advisors, 800 institution-based investment programs and 500 independent RIA firms nationwide.