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Press Release: LPL Financial Announces Fourth -5-

· 02/04/2021 16:05
Q4 2020 Q3 2020 Change Q4 2019 Change ------------ ------------ ------- ------------ ------- Commission Revenue by Product Annuities $262,235 $250,823 5% $244,249 7% Mutual funds 153,330 146,788 4% 150,697 2% Fixed income 24,395 16,731 46% 28,642 (15%) Equities 31,231 30,283 3% 21,233 47% Other 31,829 28,018 14% 32,099 (1%) -------- -------- -------- Total commission revenue $503,020 $472,643 6% $476,920 5% Commission Revenue by Sales-based and Trailing Commission Sales-based commissions Annuities $ 89,125 $ 81,475 9% $ 86,141 3% Mutual funds 36,715 33,871 8% 37,611 (2%) Fixed income 24,395 16,731 46% 28,642 (15%) Equities 31,231 30,283 3% 21,233 47% Other 21,038 17,997 17% 20,353 3% -------- -------- -------- Total sales-based commissions $202,504 $180,357 12% $193,980 4% Trailing commissions Annuities $173,110 $169,348 2% $158,108 9% Mutual funds 116,615 112,917 3% 113,086 3% Other 10,791 10,021 8% 11,746 (8%) -------- -------- -------- Total trailing commissions $300,516 $292,286 3% $282,940 6% ------- ------- ------- Total commission revenue $503,020 $472,643 6% $476,920 5% ======= ======= ======= Payout Rate Base Payout Rate 82.57% 82.97% (40bps) 82.82% (25bps) Production Based Bonuses 3.99% 3.65% 34bps 3.96% 3bps -------- -------- -------- Total Payout Ratio 86.57% 86.62% (5bps) 86.78% (21bps)Nov to December November December October September 2020 2020 Change 2020 2020 ---------- ---------- -------- --------- ------------- Assets Advisory Assets(11) $ 461.2 $ 442.0 4.3% $ 406.0 $ 405.9 Brokerage Assets(12) 441.9 431.3 2.5% 401.6 404.4 ---------- ---------- --------- ----------- Total Advisory and Brokerage Assets $ 903.1 $ 873.3 3.4% $ 807.6 $ 810.4 ------ ------ ----- ------- Net New Assets (NNA) Net New Advisory Assets(16) $ 6.8 $ 5.8 n/m $ 5.7 $ 4.4 Net New Brokerage Assets(17) 1.1 1.6 n/m 0.8 0.7 ---------- ---------- --------- ----------- Total Net New Assets $ 7.9 $ 7.4 n/m $ 6.5 $ 5.1 ------ ------ ----- ------- Net Brokerage to Advisory Conversions(19) $ 1.0 $ 0.7 n/m $ 0.9 $ 0.7 Net New Assets (NNA) Prior to Acquisitions(18) Net New Advisory Assets $ 6.8 $ 4.2 n/m $ 4.8 $ 4.4 Net New Brokerage Assets 1.1 0.7 n/m 0.2 0.7 ---------- ---------- --------- ----------- Total Net New Assets Prior to Acquisitions $ 7.9 $ 4.9 n/m $ 5.0 $ 5.1 ------ ------ ----- ------- Client Cash Balances Insured Cash Account Balances $ 37.3 $ 36.1 3.3% $ 36.0 $ 34.7 Deposit Cash Account Balances 8.2 8.3 (1.2%) 8.6 8.0 ---------- ---------- --------- ----------- Total Bank Sweep Balances 45.5 44.5 2.2% 44.6 42.7 Money Market Account Cash Balances 1.5 1.5 --% 1.6 1.5 Purchased Money Market Funds 1.9 2.1 (9.5%) 2.2 2.3 ---------- ---------- --------- ----------- Total Money Market Balances 3.3 3.6 (8.3%) 3.8 3.9 ---------- ---------- --------- ----------- Total Client Cash Balances $ 48.9 $ 48.1 1.7% $ 48.3 $ 46.6 ------ ------ ----- ------- Net Buy (Sell) Activity(25) $ 5.6 $ 4.2 n/m $ 2.5 $ 2.9 Market Indices S&P 500 Index (end of period) 3,756 3,622 3.7% 3,270 3,363 Fed Funds Effective Rate (average bps) 9 9 --bps 9 9Q4 2020 Q3 2020 Change Q4 2019 Change --------- --------- ------- --------- ------ Net New Assets (NNA) Net New Advisory Assets(16) $18.4 $10.4 n/m $11.5 n/m Net New Brokerage Assets(17) 3.4 0.7 n/m 1.0 n/m ----- ----- ----- Total Net New Assets $21.8 $11.1 n/m $12.5 n/m Net New Assets (NNA) Prior to Acquisitions(18) Net New Advisory Assets $15.9 $10.4 n/m $11.5 n/m Net New Brokerage Assets 1.9 0.7 n/m 1.0 n/m ----- ----- ----- Total Net New Assets Prior to Acquisitions $17.8 $11.1 n/m $12.5 n/m Net Brokerage to Advisory Conversions(19) $ 2.6 $ 2.0 n/m $ 1.9 n/m Advisory NNA Annualized Growth Prior to Acquisitions(20) 15.6% 11.0% n/m 13.7% n/m Total NNA Annualized Growth Prior to Acquisitions(20) 8.8% 5.8% n/m 6.9% n/m Net New Advisory Assets Corporate Platform Net New Advisory Assets(21) $15.0 $ 7.8 n/m $ 8.7 n/m Hybrid Platform Net New Advisory Assets(22) 3.3 2.6 n/m 2.9 n/m ----- ----- ----- Total Net New Advisory Assets $18.4 $10.4 n/m $11.5 n/m Centrally Managed Net New Advisory Assets(23) $ 2.5 $ 1.9 n/m $ 2.3 n/m Client Cash Balances Insured Cash Account Balances $37.3 $34.7 7% $24.4 53% Deposit Cash Account Balances 8.2 8.0 2% 5.0 64% ----- ----- ----- Total Bank Sweep Balances 45.5 42.7 7% 29.4 55% Money Market Account Cash Balances 1.5 1.5 --% 1.9 (21%) Purchased Money Market Funds 1.9 2.3 (17%) 2.4 (21%) ----- ----- ----- Total Money Market Balances 3.3 3.9 (15%) 4.3 (23%) ----- ----- ----- Total Client Cash Balances $48.9 $46.6 5% $33.7 45% Client Cash Balances % of Total Assets 5.4% 5.7% (30bps) 4.4% 100bps Client Cash Balance Average Fees(24) Insured Cash Account Average Fee - bps 108 118 (10) 222 (114) Deposit Cash Account Average Fee - bps 30 38 (8) 184 (154) Money Market Account Average Fee - bps 5 9 (4) 69 (64) Purchased Money Market Fund Average Fee - bps 13 20 n/m 29 n/m Total Client Cash Balance Average Fee - bps 87 95 (8) 193 (106) Net Buy (Sell) Activity(25) $12.2 $ 9.3 n/m $ 9.8 n/m

(Unaudited)

LPL Financial Holdings Inc.

Monthly Metrics(5)

(Dollars in billions, except where noted)

(Unaudited)

LPL Financial Holdings Inc.

Financial Measures(5)

(Dollars in thousands, except where noted)

(Unaudited)

LPL Financial Holdings Inc.

Capital Management Measures(5)

(Dollars in thousands, except where noted)

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February 04, 2021 16:05 ET (21:05 GMT)