LPL Financial's February Brokerage & Advisory Assets Rise Y/Y

Core Viewpoint - LPL Financial (LPLA) experienced growth in total brokerage and advisory assets in February 2025, reaching $1.82 trillion, which represents a 0.6% increase from the previous month and a 29.9% increase year over year [1]. Group 1: Asset Performance - Total brokerage assets were reported at $828.2 billion, reflecting a 1.1% increase from January 2025 and a 30.4% increase year over year [2]. - Advisory assets amounted to $995 billion, with a 0.3% increase from the previous month and a 29.5% increase from February 2024 [2]. Group 2: Net New Assets - Total net new assets (NNAs) for February were $24.5 billion, which included $0.7 billion from Liquidity & Succession activity [3]. - Organic NNAs totaled $23.8 billion, with significant contributions from Prudential Advisors ($13.7 billion) and Wintrust Investments, LLC ($0.3 billion) [3]. - Excluding certain assets, organic NNAs were $10 billion [3]. Group 3: Client Cash Balances - The total client cash balance was $51.3 billion in February, down 1.7% from the prior month but up 11.5% from February 2024 [4]. - Of this total, $35.6 billion was insured cash, $10.2 billion was deposit cash, and the remainder consisted of money-market sweep and client cash balance [4]. Group 4: Strategic Outlook - The company is poised for growth through acquisitions, including the buyout of Investment Center and the acquisition of Atria Wealth, which are expected to enhance advisory revenues [5]. - Despite positive growth, there are concerns regarding capital market performance and substantial goodwill on the balance sheet [5]. Group 5: Market Comparison - In the past six months, LPLA shares have increased by 42.6%, outperforming the industry growth of 18.1% [6]. - Charles Schwab (SCHW) reported a core NNA of $48 billion in February, a 57% increase from the previous month and a 44% increase year over year, driven by market volatility [9]. - SCHW's total client assets were $10.28 trillion, down 1% from January but up 16% from February 2024 [10].