LPL Financial Reports Monthly Activity for February 2022

Rhea-AI Summary

LPL Financial LLC, a subsidiary of LPL Financial Holdings Inc. (Nasdaq: LPLA), reported a decrease of approximately $13 billion in total advisory and brokerage assets, now at $1.14 trillion, a drop of 1.1% from January 2022. Despite this, the firm achieved net new assets of $5.2 billion in February, reflecting a robust 5.4% annualized growth rate. Client cash balances rose by $2.1 billion to $60.5 billion, indicating increased liquidity among clients. The detailed performance metrics will inform investors about the company's trajectory as they approach upcoming earnings announcements.

Positive

• Achieved $5.2 billion in total net new assets, 5.4% annualized growth rate.
• Increased client cash balances by $2.1 billion to $60.5 billion, a 3.6% increase.

Negative

• Total advisory and brokerage assets decreased by $13 billion, down 1.1% month-over-month.

SAN DIEGO, March 17, 2022 (GLOBE NEWSWIRE) -- LPL Financial LLC, a wholly owned subsidiary of LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”), today released its monthly activity report for February 2022.

Total advisory and brokerage assets at the end of February were approximately $1.14 trillion, a decrease of $13 billion, or 1.1%, compared to the end of January 2022.

Total net new assets for February were $5.2 billion, translating to a 5.4% annualized growth rate. Total net new advisory assets were $5.4 billion, translating to a 10.5% annualized growth rate.

Total client cash balances at the end of February were $60.5 billion, an increase of $2.1 billion compared to the end of January 2022. Net buying in February was $4.0 billion.

(End of Period $ in billions, unless noted)	February	January	Change	February	Change
	2022	2022	M/M	2021	Y/Y
Advisory and Brokerage Assets
Advisory Assets	612.9	619.6	(1.1%)	477.4	28.4%
Brokerage Assets	531.9	538.2	(1.2%)	447.7	18.8%
Total Advisory and Brokerage Assets	1,144.8	1,157.8	(1.1%)	925.1	23.7%
Total Net New Assets
Net New Advisory Assets	5.4	5.9	n/m	6.0	n/m
Net New Brokerage Assets	(0.2)	0.1	n/m	(0.0)	n/m
Total Net New Assets	5.2	6.1	n/m	5.9	n/m
Organic Net New Assets
Net New Organic Advisory Assets	5.4	5.9	n/m	6.0	n/m
Net New Organic Brokerage Assets	(0.2)	0.1	n/m	(0.0)	n/m
Total Organic Net New Assets	5.2	6.1	n/m	5.9	n/m
Net Brokerage to Advisory Conversions	0.9	1.2	n/m	1.1	n/m
Client Cash Balances
Insured Cash Account Balances	29.9	29.6	1.0%	37.3	(19.8%)
Deposit Cash Account Balances	10.5	9.7	8.2%	7.9	32.9%
Total Bank Sweep Balances	40.4	39.4	2.5%	45.2	(10.6%)
Money Market Account Cash Balances	18.4	17.3	6.4%	1.4	n/m
Purchased Money Market Funds	1.8	1.7	5.9%	1.7	5.9%
Total Money Market Balances	20.1	19.0	5.8%	3.1	n/m
Total Client Cash Balances	60.5	58.4	3.6%	48.3	25.3%
Net Buy (Sell) Activity	4.0	3.5	n/m	6.0	n/m
Market Indices
S&P 500 (end of period)	4,374	4,516	(3.1%)	3,811	14.8%
Russell 2000 (end of period)	2,048	2,028	1.0%	2,201	(7.0%)
Fed Funds Effective Rate (average bps)	8	8	0.0%	8	0.0%

For additional information regarding these and other LPL Financial business metrics, please refer to the Company’s most recent earnings announcement, which is available in the quarterly results section of investor.lpl.com.

About LPL Financial
LPL Financial Holdings Inc. (Nasdaq: LPLA) was founded on the principle that the firm should work for the advisor, and not the other way around. Today, LPL is a leader in the markets we serve*, supporting nearly 20,000 financial advisors, including advisors at approximately 800 institution-based investment programs and at approximately 500 registered investment advisor (“RIA”) firms nationwide. We are steadfast in our commitment to the advisor-centered model and the belief that Americans deserve access to personalized guidance from a financial advisor. At LPL, independence means that advisors have the freedom they deserve to choose the business model, services, and technology resources that allow them to run their perfect practice. And they have the freedom to manage their client relationships, because they know their clients best. Simply put, we take care of our advisors, so they can take care of their clients.

* Top RIA custodian (Cerulli Associates, 2020 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S (Based on total revenues, Financial Planning magazine 1996-2021); No. 1 provider of third-party brokerage services to banks and credit unions (2020-2021 Kehrer Bielan Research & Consulting Annual TPM Report); Fortune 500 as of June 2021. LPL Financial and its affiliated companies provide financial services only from the United States.

Securities and Advisory services offered through LPL Financial LLC, a SEC-registered broker-dealer and investment advisor. Member FINRA/SIPC.

Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial LLC. We routinely disclose information that may be important to shareholders in the "Investor Relations" or "Press Releases" section of our website.

Investor Relations – Chris Koegel, (617) 897-4574

Media Relations – Lauren Hoyt-Williams, (980) 321-1232

investor.lpl.com/contact-us

 

FAQ

What were LPLA's net new assets in February 2022?

LPLA reported total net new assets of $5.2 billion in February 2022.

How much did LPLA's advisory assets decline in February 2022?

LPLA's advisory assets declined by $6.7 billion, from $619.6 billion in January 2022 to $612.9 billion in February 2022.

What is the current value of client cash balances at LPLA?

As of February 2022, LPLA's client cash balances were $60.5 billion.

What was the annualized growth rate for LPLA's new advisory assets in February 2022?

The annualized growth rate for LPLA's new advisory assets was 10.5% in February 2022.

How did LPLA's total advisory and brokerage assets change from January to February 2022?

LPLA's total advisory and brokerage assets decreased by $13 billion, or 1.1%, from January to February 2022.