LPL FA Count Up 5% YoY However Net Income Down 12%
LPL Financial states it grew its advisor ranks throughout the 4th quarter of 2020 and saw possessions rise considerably, however the firm’s earnings was far lower than in the last quarter of 2019.
LPL grew its consultant ranks by 119 during the last 3 months of 2020, ending the year with 17,287, which was likewise 5% greater year-over-year, the business states in its fourth-quarter profits report.
As a result, the company added $10.8 billion in recruited properties throughout the 4th quarter, which helped press the routing 12-month total to $40.9 billion, a 17% increase year-over-year, LPL states.
In addition, the company saw overall organic net new asset inflows of $17.8 billion throughout the 4th quarter, representing an 8.8% annualized growth rate, with net new advisory possession inflows making up $15.9 billion, a 15.6% annualized development rate, the business says. LPL likewise induced $4.0 billion in obtained net new assets, from its acquisitions of Lucia Securities and E.K. Riley, and $2.5 billion of them were in advisory properties, according to the report. LPL says that it finished onboarding the two acquisitions throughout the last quarter of 2020.
LPL includes that it has likewise received dedications from advisors representing around 80% of the customer assets in Waddell & Reed’s wealth management organization, which LPL consented to get for $300 million in December. Waddell & Redd’s properties under advisement reached $69.7 billion by the end of December 2020. The offer is slated to nearby the middle of the year, and LPL states it’s “motivated by our continuous progress.”
Overall, LPL’s advisory and brokerage properties reached $903 billion by the end of December, which was an 18% increase year-over-year, LPL states. Advisory possessions, meanwhile, grew 26% year-over-year, to $461 billion, the company states. They also comprised 51.1% of overall assets at the end of 2020, up from 47.8% at the end of 2019, according to the report.
LPL published $1.58 billion in overall net profits in the last quarter of 2020, up from $1.46 billion reported for the prior quarter and 9% greater year-over-year. Overall operating costs likewise grew, nevertheless, from $1.30 billion in the third quarter of 2020 to $1.41 billion in the fourth, LPL states. As a result, net income in the 4th quarter was $111.6 million, up 7% from the prior quarter however down 12% year-over-year, according to the report. In all of 2020, LPL had $472.6 million in earnings, which was 16% lower year-over-year, the business states.