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LPL Financial Reports Monthly Activity for January 2025

1. January 2025 report: Assets climbed to $1.81T, up $71.1B. 2. Organic net new assets reached $34B, largely driven by Prudential and Wintrust onboarding. 3. Client cash balances decreased $2.9B amid $14.5B net buying activity. 4. Report underscores robust asset growth and efficient client conversion strategies.

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$379.4602/20 04:07 PM EDTEvent Start
$372.1302/21 10:23 PM EDTLatest Updated
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FAQ

Why Bullish?

The strong increase in total assets and significant organic net new assets reflect robust client inflows and operational efficiency. Historically, similar strong monthly reports have led to positive market reactions for LPLA.

How important is it?

The report highlights consistent asset growth and strong new asset acquisition, indicating healthy operational performance. Such periodic disclosures have historically provided catalysts for short-term price advances.

Why Short Term?

Monthly performance data typically drives immediate trading sentiment; past reports have triggered quick price adjustments.

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PRUWTFC
February 20, 2025 16:05 ET  | Source: LPL Financial Holdings, Inc. SAN DIEGO, Feb. 20, 2025 (GLOBE NEWSWIRE) -- LPL Financial LLC (“LPL Financial”), a wholly owned subsidiary of LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”), today released its monthly activity report for January 2025. Total advisory and brokerage assets at the end of January were $1.81 trillion, an increase of $71.1 billion, or 4.1%, compared to the end of December 2024. Total net new assets for January were $34.1 billion, which included $0.1 billion of acquired net new assets resulting from Liquidity & Succession activity. Total organic net new assets for January were $34.0 billion, translating to a 23.4% annualized growth rate. This included $13.5 billion of assets from Prudential Advisors (“Prudential”) and $15.2 billion of assets from Wintrust Investments, LLC and certain private client business at Great Lakes Advisors, LLC (collectively, “Wintrust”) that onboarded in January, and $0.2 billion of assets that off-boarded as part of the previously disclosed planned separation from misaligned large OSJs. Prior to these impacts, organic net new assets were $5.4 billion, translating to a 3.9% annualized growth rate. Total client cash balances at the end of January were $52.2 billion, a decrease of $2.9 billion compared to the end of December 2024. Net buying in January was $14.5 billion. (End of period $ in billions, unless noted)JanuaryDecemberChangeJanuaryChange20252024M/M2024Y/YAdvisory and Brokerage Assets     Advisory assets992.4957.03.7%740.734.0%Brokerage assets819.4783.74.6%621.131.9%Total Advisory and Brokerage Assets1,811.81,740.74.1%1,361.833.0%      Organic Net New Assets     Organic net new advisory assets13.412.5n/m2.4n/mOrganic net new brokerage assets20.512.9n/m(0.4)n/mTotal Organic Net New Assets34.025.5n/m2.0n/m      Acquired Net New Assets     Acquired net new advisory assets0.10.0n/m0.0n/mAcquired net new brokerage assets0.00.2n/m0.0n/mTotal Acquired Net New Assets0.10.3n/m0.0n/m      Total Net New Assets     Net new advisory assets13.512.6n/m2.4n/mNet new brokerage assets20.613.2n/m(0.4)n/mTotal Net New Assets34.125.8n/m2.0n/m      Net brokerage to advisory conversions2.12.0n/m1.0n/m      Client Cash Balances     Insured cash account sweep36.238.3(5.5%)33.77.4%Deposit cash account sweep10.010.7(6.5%)8.912.4%Total Bank Sweep46.349.0(5.5%)42.68.7%Money market sweep4.14.3(4.7%)2.470.8%Total Client Cash Sweep Held by Third Parties50.453.3(5.4%)45.012.0%Client cash account(1)1.81.8—%1.9(5.3%)Total Client Cash Balances52.255.1(5.3%)46.911.3%      Net buy (sell) activity14.513.5n/m12.0n/m      Market Drivers     S&P 500 Index (end of period)6,0415,8822.7% 4,84624.7% Russell 2000 Index (end of period)2,2882,2302.6% 1,94717.5% Fed Funds daily effective rate (average bps)433448(3.3%) 533(18.8%)        For additional information regarding these and other LPL Financial business metrics, please refer to the Company’s most recent earnings announcement, which is available in the quarterly results section of investor.lpl.com. Contacts Investor Relationsinvestor.relations@lplfinancial.com Media Relationsmedia.relations@lplfinancial.com About LPL Financial LPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace, LPL supports nearly 29,000 financial advisors and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $1.7 trillion in brokerage and advisory assets on behalf of approximately 6 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com. Securities and advisory services offered through LPL Financial LLC (“LPL Financial”), a registered investment advisor and broker-dealer, member FINRA/SIPC. Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial. We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website. Note: Totals may not foot due to rounding.(1) During the first quarter of 2024, the Company updated its definition of client cash account balances to exclude other client payables. Prior period disclosures have been updated to reflect this change as applicable.

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