LPL Financial, Inc. (LPLA) reported second quarter 2022 results yesterday evening. Diluted Earnings Per Share (EPS) was $1.97, up 35% from $1.46 a year ago. Here are five things you should know about this earnings call:
- Total advisory and brokerage assets declined 8% for the quarter and 4% year-over-year (YoY) to $1.06 trillion. Total organic net new assets were $37 billion, representing 13% annualized growth for the quarter, however these gains were more than offset by lower equity markets.
- Notable additions by LPLA include the onboarding of the retail brokerage and advisory business of CUNA Brokerage Services, Inc. in the second quarter. This includes $30 billion of total assets, and $25 billion of this total was onboarded onto LPLA’s platform in the quarter. Additionally, M&T Bank, which was onboarded in 2021, acquired People’s United Bank and will move its wealth management business to LPLA’s platform in the second half of 2022. This is comprised of roughly $6 billion in assets and over 30 advisers.
- LPLA has announced it has entered into an agreement to acquire Boenning & Scattergood, a broker/dealer and Registered Investment Advisor (RIA) firm with approximately 40 financial advisors and $5 billion of advisory and brokerage assets.
- Net income grew 20% in the quarter to $161 million, a YoY increase of 35%, and gross profit fell 4% on the quarter to $711 million, up 18% from a year ago. EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization) increased 16% in the quarter, 28% YoY to $311 million.
- The company believes they delivered strong business and financial results in the second quarter and management emphasized that they remained focused on enhancing and expanding their services portfolio to better support their advisers going forward.
To learn more visit – LPL Financial Announces Second Quarter 2022 Results
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