LPL Investment Holdings, parent company of the largest independent broker-dealer, LPL Financial, posted a 39% increase in net income on a 16% increase in net revenue for the third quarter ended Sept. 30, 2011. The company also said it had added 782 net new representatives in the year through September, giving it a total of 12,799 reps; in the third quarter of 2010, it had 12,017 reps, and at the end of 2011's second quarter it had 12,660 reps.
On the financials, net income was $36.4 million, or $0.32/diluted share, a 39.3% rise from net income of $26.1 million reported in 2010's third quarter. Net revenue for the period ended Sept. 30, 2011 was $882.9 million, a 16.2% increase from net revenue of $760 million in 2010's third quarter.
For the first nine months of 2011, LPL reported net income of $130.9 million, up 119.3% compared to the same period in 2010, while net revenue for the period was $2.7 billion, up 15.6% from the first nine months of 2010.
"Periods of market volatility underscore the value of financial advice and the trusted relationships our advisors share with their clients," said Mark Casady, LPL Financial chairman and CEO, in a statement. "Our performance this quarter illustrates the resiliency of our business model and our ability to produce strong results during challenging economic conditions," he continued, and that while "client concern is elevated by current market volatility, we have not seen a material change in client behavior."
