LPL Financial(US:LPLA) ZACKSยท2024-09-20 12:36Company Overview - LPL Financial's total brokerage and advisory assets reached $1.56 trillion at the end of August 2024, marking a 2% increase from the previous month and a 22.7% increase year over year [1] - Brokerage assets accounted for $690.6 billion, growing 1.8% from July 2024 and 17% year over year, while advisory assets totaled $869.5 billion, rising 2.2% from the previous month and 27.7% from August 2023 [1] Net New Assets - Total net new assets (NNAs) for August 2024 were $6.8 billion, which included $0.3 billion from acquired net new assets related to Liquidity & Succession activity [2] - NNAs decreased from $9 billion in July 2024 and $13.1 billion in August 2023; excluding off-boarded assets from a planned separation, total NNAs would have been $10.4 billion [2] Client Cash Balance - The total client cash balance was reported at $43.3 billion in August, down 1.6% from the prior month and 9.2% from August 2023 [3] - Of this total, $30.4 billion was insured cash, $9.3 billion was deposit cash, with the remainder consisting of money-market sweep and client cash balance [3] Market Position and Performance - LPL Financial's recruiting efforts and advisor productivity are expected to support advisory revenues, with plans for strategic acquisitions to diversify operations [4] - However, the company faces a challenging operating backdrop that may impact financial performance in the near term [4] Competitive Landscape - In comparison, Charles Schwab reported core NNAs of $32.8 billion in August 2024, up 13% from the previous month and significantly higher than $4.9 billion in the same month last year [8] - Schwab's total client assets reached $9.74 trillion, reflecting a 2% increase from July 2024 and a 20% increase year over year [8] - Interactive Brokers reported a 40.4% increase in client Daily Average Revenue Trades (DARTs) year over year, totaling 2,712,000 in August 2024 [7]