LPL Financial closed out a difficult 2016 on Thursday, reporting financial results that show the company still faces stiff headwinds.
Net revenue came in at $4.05 billion, down 5 percent from 2015. For the fourth quarter, net revenue was off 1 percent, to $1 billion from the fourth quarter of 2015.
Diluted earnings per share were up 22 percent, however, to $2.15 for the full year, helped by cost controls and reduced regulatory costs.
Commission revenue—LPL’s biggest revenue line—was off 12 percent for the year to $1.74 billion, and down 9 percent for the fourth quarter, to $423 million.
LPL was hit hard by a drop-off in sales of annuities and alternatives as advisors shifted away from high-commission products toward more advisory accounts, spurred by the pending DOL rule and other regulatory issues.
Total brokerage and advisory assets at LPL reached $509.4 billion, up 7 percent from the end of 2015.
New chief executive Dan Arnold told analysts Thursday that the firm hoped to grow its centrally managed advisory platforms by offering advisors and clients a fee reduction, which began last month.
These corporate platform advisory assets were up 5 percent at year’s end, to $127 billion, from 2015.
Separately, brokerage assets were flat at $297.8 billion.
The firm’s hybrid platform for independent advisors who use LPL to custody both sides of their businesses continues to be a hot growth area.