LPL Financial's (LPLA) August Brokerage Assets Improve Y/Y

LPL Financial Holdings Inc.’s (NASDAQ:LPLA) total brokerage and advisory assets of $711.7 billion at the end of August 2019 declined marginally from the prior month but grew 4.9% year over year. Of the total brokerage and advisory assets, brokerage assets were $378.7 billion while advisory assets were $333 billion.

Excluding the acquisition of Allen & Co., total brokerage and advisory assets at the end of August were $708.9 billion, down marginally from the prior month but up 4.4% year over year. Of the total brokerage and advisory assets, brokerage assets were $376.9 billion while advisory assets totaled $332 billion.

Total organic net new assets were an inflow of $2.5 billion in August. This included $0.4 billion of outflows related to a large hybrid firm. Prior to the outflows, total organic net new assets were an inflow of $2.9 billion.

LPL Financial reported $31 billion of total client cash sweep balance, up nearly 3.7% from July 2019 and 10.3% from August 2018. Of the total, $22 billion was insured cash and $4.5 billion was deposit cash while the remaining $4.5 billion was money market balance.

Backed by decent equity markets performance, trading activities are expected to improve. This in turn will support revenues.

Shares of LPL Financial have rallied 14.3% over the past six months, outperforming 2.1% growth for the industry.

LPL Financial currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Investment Brokers

E*TRADE Financial’s (NASDAQ:ETFC) Daily Average Revenue Trades (DARTs) for August were 284,828, up 12% from the previous month as well as year over year. Notably, derivatives comprised 35% of DARTs in August.

Interactive Brokers Group, Inc.’s (NYSE:IBKR) Electronic Brokerage segment reported a sequential increase in DARTs for August 2019. Total client DARTs were 930,000, up 16% from July 2019 and 26% from August 2018. Total customer accounts grew 1% from the previous month and 17% from the prior-year month to 659,500.

The Charles Schwab Corporation (NYSE:SCHW) released the monthly activity report for August, which showed a decline from the prior month. Net new assets of $19.9 billion improved 3% from July 2019. Nonetheless, it declined 4% year over year. Total client assets were $3.7 trillion, down 1% from the prior month but up 5% from the year-ago month.

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