LPL Financial added hundreds of advisors in the latest quarter but saw its client assets shrink significantly — which didn’t prevent the firm from posting a healthy jump in income.

The company ended June with 20,871 advisors, up from 20,091 at the end of March and 9% more than it had at the end of June last year, according to LPL’s second-quarter earnings report.

The company saw a rise in the number of total client accounts, ending June with 7.6 million, which was 4% higher than at the end of March and 13% higher year-over-year, LPL says.

“Over the past quarter, we remained focused on our mission of taking care of our advisors, so they can take of their clients,” LPL president and chief executive officer Dan Arnold said in the report. “Amid persistent market volatility, this focus led to another quarter of solid business outcomes, as our advisors continue to reinforce the value they provide to their clients. As we look ahead, we aim to continue investing in our model and increasing our market share within the advisor-centered marketplace.”

Nonetheless, the firm saw steep drops in both its advisory and brokerage assets, with the total sliding down to $1.07 trillion by the end of June, which was 8% lower than at the end of March and 4% lower year-over-year, according to the report.

The drop in assets was despite LPL adding $37.2 million in net new brokerage and advisory assets in the latest quarter, which was up from $17.6 million added in the first quarter this year but down from the $106.0 million added in the second quarter of 2021, the company says.

Total revenue in the latest quarter was $2.04 billion, which was 1% lower than in the first quarter of 2022 but 7% higher year-over-year, according to the report.

At the same time, total expenses in the second quarter was $1.83 billion, which was 3% lower than in the prior quarter but 5% higher year-over-year, the company says.

In the end, however, LPL’s net income for the latest quarter shot up to $160.55 million, a 20% increase from the second quarter of 2021 and a 35% increase year-over-year, according to the report.

“We delivered another quarter of solid results. We recorded double-digit organic growth, while successfully onboarding CUNA, substantially completing the integration of Waddell & Reed, and signing an agreement to acquire Boenning & Scattergood,” LPL chief financial officer Matt Audette said in the report. “Additionally, we are looking forward to onboarding People’s United Bank later this year. As we look ahead, our business momentum and financial strength position us well to continue creating long-term shareholder value.”

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