LPL Profits Soar on Strong Recruiting: Q1 Earnings
May 7, 2019 by Janet Levaux
LPL Financial improved profits 66% from last year in the first quarter; the independent broker-dealer reported net income of $155 million, or $1.79 per share, vs. $94 million, or $1.01 per share, a year ago.
Net new advisory asset inflows were $4.6 billion, while net new brokerage assets outflows were $0.7 billion — translating into an overall 2.5% annualized inflow rate. Recruited assets were $7.1 billion.
On a call Thursday with equity analysts, President & CEO Dan Arnold said that over the past 12 months, the IBD has had “a little over $30 billion in recruited AUM. It’s the first time we’ve ever had that.”
Arnold attributed the recruiting momentum to a number of factors, with the IBD doing a “better job of pulling through those prospects once they’re in the pipeline” and aligning transition assistance with financial returns.
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