LPL Financial President and CEO, Dan Arnold

A Message from the President & CEO

A look back at LPL Financial's successes in 2019, driven by a focus on strategic priorities, thoughtful execution, and a mission-driven culture

We delivered another year of solid business and financial growth at LPL in 2019, driven by a continued focus on our strategic priorities, combined with thoughtful execution and a mission-driven culture. We believe this focus continues to position us well as we serve our clients and drive profitable growth for our shareholders.

Looking at our financial results, we continued to drive top-line growth in 2019, with gross profit up 12% year-over-year. We also remained focused on investing in our business while staying disciplined on expenses to drive operating leverage. As a result, net income increased 27% year-over-year to $560 million and earnings per share prior to amortization of intangible assets grew 35% year-over-year to $7.17.

Looking at the marketplace more broadly, we continue to operate in a large and growing market with favorable secular trends towards independence and advisory solutions. While the strength of our balance sheet and business model positions us well to continue investing to drive organic growth, we understand the importance of remaining flexible in the event of changes in the macro environment. With that in mind, I’d like to share our strategic framework to provide more color on where we are investing.

Positioning Our Model Across the Entire Wealth Management Market

We are focused on winning in our traditional independent and institutional markets, while also continuing to invest in capabilities and pricing to support our advisors and financial professionals. In 2019, our differentiated capabilities drove solid recruited assets, bringing our full-year total to $35 billion, the strongest year in LPL’s history. Additionally, we supported our clients by lowering advisory transaction prices and enhancing our centrally managed platforms, while also introducing new affiliation models that make it easier for new advisors to join LPL.

Creating an Industry-Leading Service Experience, at Scale

As a firm, we are working to create an industry-leading service experience, which includes enhancing and differentiating ClientWorks, making continuous improvements to the client experience, and transforming our service offering into a client care model. We recognize the importance of listening to and applying feedback as we work to deliver an offering that is unique to the wealth management space.

Looking Ahead

As we look ahead, we are focused on helping our clients in the independent market enhance how they grow, protect, and operate their businesses. In that spirit, we are helping them with innovations, such as outsourced business solutions, digitized workflows, and capital solutions.

I’d like to thank our employees for remaining focused on combining strategy, execution, and culture to serve our clients, drive profitable growth, and create long-term shareholder value.

Sincerely,

Dan Arnold
President & CEO