LPL Financial Holdings posted record third-quarter gains in brokerage and advisory assets and headcount of financial advisors, the company announced.
Total brokerage and advisory assets reached a record $1.13 trillion, up 40% year-over-year. Advisory assets were $594 billion, a jump of 46%. The company’s advisor count soared to 19,627. It added a total of 2,459 year-over-year and 513 advisors since the last quarter.
But the company also said it saw a 13% drop in net income from last quarter. The company reported net income of $103 million or $1.26 per share, compared to $119 million, or $1.46 per share, in the second quarter and $104 million, or $1.29 per share, in the third quarter of 2020.
The company’ organic growth remained strong with $27 billion in net new assets, a 10% annualized growth and more than 14% organic growth over the past year. Recruiting reached $13 billion, up 24% from a year ago. And $83 billion for the past 12 months, which more than doubled the prior year period.
“Over the past quarter, we remained focused on our mission of taking care of our advisors, so they can take care of their clients,” Dan Arnold, president and CEO, said in a statement. “At the same time, we continued to enhance the appeal of our model and increase our market share within the advisor-centered marketplace. This combination contributed to another quarter of solid recruiting, retention, and business growth.”
The company’s assets were boosted through several partnerships. It completed the Waddell & Reed deal, which added $2.3 billion in net new assets, of which $600 million were advisory and $1.7 billion were brokerage. That brought total acquired net new assets from the acquisition to $71 billion, the company said. The partnership with M&T Bank resulted in the onboarding of $4.5 billion of brokerage assets in the third quarter, which to a large extent completed the onboarding of about $22 billion total assets.
“We delivered another quarter of strong results in Q3”, said Matt Audette, CFO. ‘‘With the onboarding of Waddell & Reed, BMO, and M&T complete, we are continuing to help advisors acclimate and leverage our platform and capabilities, while also preparing to onboard CUNA next year. As we look ahead, we are excited by a strong and growing pipeline, which positions us to drive additional growth and long-term shareholder value.”