LPL’s Advisor Force Dipped in Past Year

Q3 net new advisory assets grew by $6.9 billion from a year ago, but net new brokerage assets experienced outflows

For the third quarter ending Sept. 30, LPL Financial had net income of $58 million, or $0.63 per share, vs. $52 million, or $0.58 per share, a year ago — meeting equity analysts’ estimates.

Revenue, though, fell short of analysts’ estimates by about $20 million, according to Seeking Alpha, at $1.06 billion, which represents a 4% increase from last year.

In addition, LPL says its total advisor count decreased to 14,253, down 124 advisors from 2016, and fell by 3 from last quarter.

“We remained focused on our strategic priorities of growing our core business and executing with excellence in the third quarter,” said President & CEO Dan Arnold, in a statement.

LPL’s retention rate for advisor fees and commissions this year stands at 95%. Before several large groups departed, its production retention rate in the first three quarters of 2016 was 97%.

“We actively used our balance sheet strength in the quarter to deploy capital on several fronts,” explained CFO Matt Audette, in a press release. “We acquired NPH, invested in growth through technology and recruiting, refinanced our debt, and returned capital to shareholders through share repurchases and dividends.”

The firms total level of brokerage and advisory assets grew 11% year over year to $560 billion. Total net new assets were $2.9 billion, representing a 2% yearly growth rate. 

Net new advisory assets expanded by $6.9 billion, while net new brokerage assets had outflows of $4.0 billion.

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