LPL Financial's January Brokerage and Advisory Assets Rise Y/Y

Core Viewpoint - LPL Financial (LPLA) experienced significant growth in total brokerage and advisory assets in January 2025, indicating strong performance in the financial services sector [1]. Group 1: Asset Performance - Total brokerage and advisory assets reached $1.81 trillion, reflecting a 4.1% increase from the previous month and a 33% increase year over year [1]. - Brokerage assets were reported at $819.4 billion, up 4.6% from December 2024 and 31.9% year over year [2]. - Advisory assets totaled $992.4 billion, increasing by 3.7% from the previous month and 34% from January 2024 [2]. Group 2: New Assets and Cash Balances - Total net new assets (NNAs) amounted to $34.1 billion in January, with $0.1 billion from acquired NNAs and $34 billion from organic sources [3]. - Organic NNAs included $13.5 billion from Prudential Advisors and $15.2 billion from Wintrust Investments, with a net off-boarded asset of $0.2 billion [3]. - The total client cash balance was $52.2 billion, down 5.3% from the prior month but up 11.3% from January 2024 [4]. Group 3: Strategic Developments - The company is pursuing strategic acquisitions, including a planned buyout of Investment Center and the recent acquisition of Atria Wealth, which are expected to enhance advisory revenues [5]. - LPL Financial's stock has risen 16.1% over the past three months, outperforming the industry growth of 8% [6]. Group 4: Peer Performance - Charles Schwab (SCHW) reported core net new assets of $30.6 billion in January 2025, a decline from the previous month but a significant increase from the same month last year [8]. - Interactive Brokers Group, Inc. (IBKR) reported a rise in client Daily Average Revenue Trades (DARTs) to 3,473,000, reflecting a 6.3% increase from December 2024 and a 48.4% increase year over year [10].