LPL Financial (LPLA) July Metrics Up 2.1% on Favorable Markets

Company Overview - LPL Financial's total brokerage and advisory assets reached $1.53 trillion at the end of July 2024, marking a 2.1% increase from the previous month and a 19.6% increase year over year [1] - Brokerage assets were $678.7 billion, growing 1.5% from June 2024 and 14.3% year over year, while advisory assets amounted to $850.6 billion, rising 2.6% from the previous month and 24.3% from July 2023 [2] Net New Assets - Total net new assets (NNAs) for July 2024 were $9 billion, down from $10.8 billion in June 2024 and $11 billion in July 2023. Excluding $0.6 billion of off-boarded assets, NNAs were $9.5 billion [3] Client Cash Balance - The total client cash balance was $44.5 billion in July, stable compared to the prior month but down 8.9% from July 2023. This included $31.1 billion in insured cash and $9.1 billion in deposit cash [4] Strategic Outlook - The company's recruiting efforts and strong advisor productivity are expected to support advisory revenues. Strategic acquisitions are anticipated to aid in diversifying operations, although a challenging operating environment poses near-term headwinds [5] Competitive Landscape - Interactive Brokers Group reported a 38.4% increase in client Daily Average Revenue Trades (DARTs) year over year, totaling 2,756,000 in July 2024 [7] - Charles Schwab reported core net new assets of $29 billion in July 2024, significantly up from $13.7 billion in the same month last year, while total client assets reached $9.57 trillion, a 2% increase from June 2024 and 16% year over year [8][9]