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LPL Financial continued to grow its advisor ranks and reached record assets in the last quarter of 2021, but that was not enough to prevent a decline in annual net income.

The company had 19,876 advisers at the end of December, up 249 from the end of September and 2,589 more year-over-year, according to LPL’s fourth-quarter earnings report.

Total advisory and brokerage assets, meanwhile, hit a new year-end high of $1.21 trillion, up 34% year-over-year, according to LPL. .

Consulting assets reached a record $643 billion, a 39% increase from the end of 2020, and accounted for 53.3% of total assets, up from 51.1% at the end of 2020, according to the report.

LPL also hit a new record for total net organic new asset growth in 2021, adding $119 billion, representing a 13% increase, according to the company.

Assets recruited in the last quarter were $17 billion, or 59% more year-over-year, according to the report. For the year, LPL added $89 billion in recruited assets, more than double that of 2020, according to the company.

The company also added $71 billion in net new assets acquired in 2021, of which $34 billion were advisory assets and $37 billion were brokerage assets that LPL added with the acquisition of Waddell & Reedwealth management business, according to the report.

“We have invested to drive growth while remaining disciplined on spending, successfully integrating Waddell & Reed, BMO and M&Tand delivered the highest organic net new assets in our history,” said LPL’s CEO. Matt Audette said in a statement. “Going forward, our business momentum and financial strength position us well to continue to create long-term shareholder value.

LPL is also seeing healthy growth in total revenue: in the last quarter of 2021, it was $2.1 billion, 4% more than the previous quarter and 32% more than a year. on the other.

For all of 2021, total revenue was $7.7 billion, up 31% from 2020, according to LPL.

Total spending, however, also rose 4% from the third quarter to $2.0 billion, also 36% higher year-over-year, according to the report.

As a result, net income for the last quarter was $108.1 million, 5% higher than the prior quarter but 3% lower year-over-year, according to LPL.

For all of 2021, LPL reported net profit of $459.9 million, 3% lower than in 2020, according to the report.

“In 2021, we remained focused on our mission to take care of our advisors, so they can take care of their clients. This focus has resulted in continued company growth, market share gains and strong financial results,” Audette said in a statement. we look to the future, we continue to strive to be the best at empowering advisors – to be great advisors to their clients and great business owners.

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