LPL Financial (LPLA), the largest independent U.S. broker-dealer, reported a 4.6% drop in net income for the first quarter to $50.7 million from $53.1 million a year ago, but revenues and assets rose.
Net revenues rose 2% to $1.1 billion and assets increased 9% to $485 billion.
On an adjusted basis, net income fell 11.1% to $63.2 million from $71.0 million a year ago and earnings per share fell to $0.64 from $0.69.
In a statement following the earnings release, LPL Financial President Dan Arnold said regulatory-related costs plus costs for two advisor conferences and a decrease in cash sweep revenues more than offset benefits from business growth and reduction in the number of outstanding shares.
LPL Financial paid $11 million in regulatory charges for the quarter, including fines and legal and regulatory consulting fees, and, according to its earnings statement, expects such costs will remain elevated for the rest of the year but not as high in subsequent quarters.
