Independent broker-dealer LPL Financial has withstood the Covid-19 shock and reported growth in Q1 income.
Key metrics in Q1 2020
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Net income at the firm in Q1 2020 was $156m, a slight increase from the previous year.
Earnings per share (EPS) rose 7% to $1.92 over the period.
Advisory assets rose 3% to $322bn on a year-over-year basis. Total Brokerage and Advisory Assets dropped 2% year-over-year to $670bn.
Net new assets were an inflow of $12.5bn, equating to a 6.5% annualised growth rate.
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By GlobalDataAdviser count increased 574 from the year earlier to 16,763.
Total client cash balances stood at $47.8bn at the end of March 2020.
Commenting on the performance, LPL CFO Matt Audette said: “In the first quarter, our continued business growth combined with the natural hedges in our model drove another quarter of strong financial outcomes.
“We grew gross profit, stayed disciplined on expenses, and generated the highest quarter of earnings per share in our history. Looking forward, our financial strength positions us well to continue investing to drive organic growth while also staying flexible to adjust spending if macro conditions warrant.”
Recently, LPL agreed to buy Lucia Securities, a San Diego-based broker-dealer and RIA. The deal will add $1.5bn in client assets under management and 20 advisers to LPL.
