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LPL Reports Strong 2023 Earnings, Robust Recruiting

LPL Reports Strong 2023 Earnings, Robust Recruiting. LPL Financial, alternative investments, broker-dealer, financial services, fourth quarter, annual

LPL Financial Holdings Inc. announced results for its fourth quarter ended Dec. 31, 2023, reporting net income of $218 million, or $2.85 per share. This compares with $319 million, or $3.95 per share, in the fourth quarter of 2022 and $224 million, or $2.91 per share, in the prior quarter.

For the year, LPL net income was $1.1 billion, translating to diluted earnings per share of $13.69, up a significant 32% from a year ago. Adjusted EPS increased 36% year-over-year to $15.72, and gross profit increased 26% year-over-year to $4.03 billion.

“Over the past year, we remained focused on our mission of taking care of our advisers, so they can take of their clients,” said Dan Arnold, president and chief executive officer. “We continued to serve and empower our advisers as they helped their clients achieve their life goals and dreams. As a result of their successes, we delivered solid business and financial results, while increasing our market share. In 2024, we look forward to further executing on our vision of becoming the leader across the adviser-centered marketplace.”

Fourth quarter recruited assets were $17 billion, bringing LPL’s full year recruited assets to $80 billion. Not including large enterprises, full year recruited assets were $67 billion. This exhibited an increase of 49% from a year ago and set an annual record for the company.

Mergers and acquisitions remain “a core part of our strategy [as a] complement to our organic growth opportunities,” said Arnold during the conference call with analysts on Feb. 1.

Adviser count was 22,260, up 256 sequentially and 1,385 year-over-year. According to InvestmentNews reporting, LPL has been paying highly competitive recruiting bonuses as compared to other firms.

“Looking at 2023, we continued to execute on our strategic priorities, while at the same time creating long-term value for shareholders,” said Matt Audette, chief financial officer and head of business operations. “We continued to grow assets organically in both our traditional and new markets, successfully onboarded new enterprise clients, and made progress with our liquidity and succession solution. Looking ahead, we are excited by the opportunities we have to continue serving our advisers and their clients.”

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