Oppenheimer Holdings Inc. Reports Third Quarter 2024 Earnings
Oppenheimer Holdings reported strong Q3 2024 results with net income of $24.5 million ($2.38 basic EPS), up from $13.9 million ($1.32 basic EPS) in Q3 2023. Revenue increased 19.4% to $373.4 million. The company saw improvements across segments, with Private Client revenue up 13.2% to $218.8 million, Asset Management revenue up 30.9% to $27.3 million, and Capital Markets revenue up 31.1% to $124.0 million. Assets under management reached a record $49.1 billion. The company announced the redemption of all outstanding Senior Secured Notes ($113.05 million) on October 10, 2024.
Oppenheimer Holdings ha riportato ottimi risultati per il terzo trimestre del 2024, con un utile netto di 24,5 milioni di dollari (2,38 dollari di utili per azione di base), in aumento rispetto ai 13,9 milioni di dollari (1,32 dollari di utili per azione di base) del terzo trimestre del 2023. I ricavi sono aumentati del 19,4% raggiungendo 373,4 milioni di dollari. L'azienda ha registrato miglioramenti in tutti i segmenti, con i ricavi dei clienti privati aumentati del 13,2% a 218,8 milioni di dollari, quelli della gestione patrimoniale aumentati del 30,9% a 27,3 milioni di dollari e i ricavi dai mercati di capitale aumentati del 31,1% a 124,0 milioni di dollari. Gli attivi sotto gestione hanno toccato un massimo storico di 49,1 miliardi di dollari. L'azienda ha annunciato il riscatto di tutte le Note Senior Secured in circolazione (113,05 milioni di dollari) il 10 ottobre 2024.
Oppenheimer Holdings informó sobre resultados sólidos en el tercer trimestre de 2024, con un ingreso neto de 24,5 millones de dólares (2,38 dólares por acción básica), en comparación con 13,9 millones de dólares (1,32 dólares por acción básica) en el tercer trimestre de 2023. Los ingresos aumentaron un 19,4% alcanzando 373,4 millones de dólares. La compañía vio mejoras en todos los segmentos, con ingresos de Clientes Privados aumentando un 13,2% a 218,8 millones de dólares, ingresos de Gestión de Activos aumentando un 30,9% a 27,3 millones de dólares y ingresos de Mercados de Capital aumentando un 31,1% a 124,0 millones de dólares. Los activos bajo gestión alcanzaron un récord de 49,1 mil millones de dólares. La compañía anunció la redención de todas las Notas Senior Aseguradas pendientes (113,05 millones de dólares) el 10 de octubre de 2024.
오펜하이머 홀딩스는 2024년 3분기 실적이 강력하다고 보고했으며, 순이익은 2,450만 달러 (주당 기본 EPS: 2.38달러)로, 2023년 3분기 1,390만 달러 (주당 기본 EPS: 1.32달러)에서 증가했습니다. 수익은 19.4% 증가하여 3억 7,340만 달러에 달했습니다. 회사는 모든 부문에서 개선을 보였으며, 개인 고객 수익은 13.2% 증가하여 2억 1,880만 달러, 자산 관리 수익은 30.9% 증가하여 2,730만 달러, 자본 시장 수익은 31.1% 증가하여 1억 2,400만 달러에 도달했습니다. 관리 자산은 사상 최대인 491억 달러에 도달했습니다. 회사는 2024년 10월 10일에 모든 미결 Senior Secured Notes (1억 1,305만 달러)를 상환할 것이라고 발표했습니다.
Oppenheimer Holdings a annoncé de solides résultats pour le troisième trimestre de 2024, avec un revenu net de 24,5 millions de dollars (2,38 dollars de bénéfice par action de base), en hausse par rapport à 13,9 millions de dollars (1,32 dollars de bénéfice par action de base) au troisième trimestre de 2023. Le chiffre d'affaires a augmenté de 19,4 % pour atteindre 373,4 millions de dollars. L'entreprise a constaté des améliorations dans tous les segments, avec des revenus de clients privés en hausse de 13,2 % à 218,8 millions de dollars, des revenus de gestion d'actifs en hausse de 30,9 % à 27,3 millions de dollars et des revenus des marchés de capitaux en hausse de 31,1 % à 124,0 millions de dollars. Les actifs sous gestion ont atteint un niveau record de 49,1 milliards de dollars. L'entreprise a annoncé le remboursement de toutes les Senior Secured Notes en circulation (113,05 millions de dollars) le 10 octobre 2024.
Oppenheimer Holdings hat starke Ergebnisse für das 3. Quartal 2024 gemeldet, mit einem Nettogewinn von 24,5 Millionen US-Dollar (2,38 US-Dollar Grund-EPS), ein Anstieg von 13,9 Millionen US-Dollar (1,32 US-Dollar Grund-EPS) im 3. Quartal 2023. Die Umsätze stiegen um 19,4% auf 373,4 Millionen US-Dollar. Das Unternehmen verzeichnete Verbesserungen in allen Segmenten, wobei die Einnahmen aus privaten Kunden um 13,2% auf 218,8 Millionen US-Dollar stiegen, die Einnahmen aus der Vermögensverwaltung um 30,9% auf 27,3 Millionen US-Dollar zunahmen und die Einnahmen aus den Kapitalmärkten um 31,1% auf 124,0 Millionen US-Dollar anstiegen. Die verwalteten Vermögenswerte erreichten einen Rekord von 49,1 Milliarden US-Dollar. Das Unternehmen gab die Rückzahlung aller ausstehenden Senior Secured Notes (113,05 Millionen US-Dollar) am 10. Oktober 2024 bekannt.
- Net income increased 76.4% YoY to $24.5 million
- Revenue grew 19.4% YoY to $373.4 million
- Assets under management reached record $49.1 billion
- Advisory fees increased 82.2% in investment banking activities
- Book value per share reached new record high at $81.10
- Equity underwriting fees decreased 17.4% YoY
- Capital Markets segment reported pre-tax loss of $6.1 million
- Financial advisor headcount decreased to 928 from 946 YoY
- Bank deposit sweep income decreased by $7.4 million YoY
- Compensation expenses increased 28.5% in Private Client segment
Insights
Oppenheimer Holdings delivered strong Q3 2024 results with net income increasing by
- Record assets under management of
$49.1 billion and assets under administration of$129.8 billion - Private Client segment revenue up
13.2% with strong advisory fees and commission growth - Capital Markets revenue increased
31.1% , driven by82.2% growth in advisory fees - Strategic debt reduction through redemption of
$113.05 million in Senior Secured Notes
The improved performance reflects market strength, higher trading volumes and successful restructuring advisory business. The company's balance sheet strengthening and record book value per share of
The market environment has significantly benefited OPY's business model. The Federal Reserve's rate cut decision and positive market sentiment have created favorable conditions for:
- Higher retail trading activity during typically slow summer months
- Increased margin lending revenue despite lower sweep income
- Growth in restructuring advisory services while traditional equity underwriting remains challenged
The company's diversified revenue streams and strong wealth management franchise provide resilience, though equity underwriting headwinds persist. The reduction in debt obligations through note redemption improves financial flexibility and reduces interest expenses, positioning the firm well for potential market opportunities in 2025.
Albert G. Lowenthal, Chairman and CEO commented, "The Firm delivered strong operating results for the quarter in a still-resilient economic environment. During the third quarter, all major indices reached new highs, mostly spurred by the Federal Reserve's long-awaited decision to reduce the Federal Funds rate by one half percent with the view that lower borrowing costs will slow the uptick in unemployment without rekindling higher inflation. Based on recent economic indicators, it appears that the
The continued outperformance of the equity markets aided our Wealth Management franchise by driving better than expected retail trading volumes and related commission revenues during what is typically a seasonally slower summer trading period. The markets also propelled our assets under management ("AUM") to our third consecutive record, resulting in higher asset-based advisory fees. Additionally, higher average margin loans drove a meaningful improvement in our interest revenues from the prior year, though our interest sensitive sweep income was somewhat reduced due to lower average sweep balances.
Our investment banking revenues also rose due to an uptick in our advisory fees, particularly in our restructuring practice. Equity underwriting fees were adversely impacted by lower issuance levels as we have seen economic uncertainty restrict issuances despite the general improvement in market breadth and market averages. We believe that that Firm is well positioned to benefit as issuance volumes improve.
Our results drove yet another fresh record in our book value per share levels and provided us with the opportunity to further strengthen our balance sheet as we announced our plans to redeem all outstanding senior secured notes (
Summary Operating Results (Unaudited) | ||
('000s, except per share amounts or otherwise indicated) | ||
Firm | 3Q-24 | 3Q-23 |
Revenue | $ 373,352 | $ 312,667 |
Compensation Expenses | $ 237,935 | $ 195,684 |
Non-compensation Expenses | $ 100,047 | $ 95,396 |
Pre-Tax Income | $ 35,370 | $ 21,587 |
Income Tax Provision | $ 10,862 | $ 7,808 |
Net Income (1) | $ 24,508 | $ 13,861 |
Earnings Per Share (Basic) (1) | $ 2.38 | $ 1.32 |
Earnings Per Share (Diluted) (1) | $ 2.16 | $ 1.21 |
Book Value Per Share | $ 81.10 | $ 75.01 |
Tangible Book Value Per Share (2) | $ 64.03 | $ 58.65 |
Private Client | ||
Revenue | $ 218,787 | $ 193,254 |
Pre-Tax Income | $ 62,894 | $ 65,249 |
Assets Under Administration (billions) | $ 129.8 | $ 110.7 |
Asset Management | ||
Revenue | $ 27,262 | $ 20,830 |
Pre-Tax Income | $ 9,121 | $ 4,951 |
Assets Under Management (billions) | $ 49.1 | $ 40.4 |
Capital Markets | ||
Revenue | $ 124,030 | $ 94,576 |
Pre-Tax Loss | $ (6,144) | $ (15,254) |
(1) Attributable to Oppenheimer Holdings Inc. | ||
(2) Represents book value less goodwill and intangible assets divided by number of shares outstanding. | ||
Highlights
- Increased revenue for the third quarter of 2024 was primarily driven by significantly higher advisory fees attributable to a rise in billable assets under management ("AUM"), an increase in transaction-based commissions as well as improved investment banking and interest revenues
- Announced plans to further strengthen balance sheet through the redemption of all outstanding Senior Secured Notes which occurred on October 10, 2024
- Assets under administration and under management were both at record levels at September 30, 2024, benefiting from market appreciation
- Compensation expenses increased from the prior year quarter largely as a result of higher incentive compensation, deferred compensation and production-related expenses.
- Non-compensation expenses increased from the prior year quarter primarily due to higher interest and technology related expenses partially offset by lower legal costs
- Total stockholder's equity, book value and tangible book value per share reached new record highs as a result of positive earnings
Private Client
Private Client reported revenue for the current quarter of
('000s, except otherwise indicated) | ||
3Q-24 | 3Q-23 | |
Revenue | ||
Commissions | ||
Advisory Fees | ||
Bank Deposit Sweep Income | ||
Interest | ||
Other | $ 2,543 | |
Total Expenses | ||
Compensation | ||
Non-compensation | ||
Pre-Tax Income | ||
Compensation Ratio | 54.2 % | 47.8 % |
Non-compensation Ratio | 17.0 % | 18.4 % |
Pre-Tax Margin | 28.8 % | 33.8 % |
Assets Under Administration (billions) | ||
Cash Sweep Balances (billions) | ||
Revenue:
- Retail commissions increased
23.6% from a year ago primarily due to higher retail trading activity - Advisory fees increased
13.8% due to higher AUM during the billing period for the current quarter when compared to the third quarter of last year - Bank deposit sweep income decreased
$7.4 million - Interest revenue increased
14.5% from the prior year period due to higher interest earned from margin loans - Other revenue increased from a year ago primarily due to increases in the cash surrender value of Company-owned life insurance policies, which fluctuates based on changes in the fair value of the policies' underlying investments
Total Expenses:
- Compensation expenses increased
28.5% from a year ago primarily due to higher production related expenses and deferred compensation costs - Non-compensation expenses increased
4.5% from a year ago primarily due to higher interest expense
Asset Management
Asset Management reported revenue for the current quarter of
('000s, except otherwise indicated) | |||
3Q-24 | 3Q-23 | ||
Revenue | $ 27,262 | $ 20,830 | |
Advisory Fees | $ 27,432 | $ 25,188 | |
Other | $ (170) | $ (4,358) | |
Total Expenses | $ 18,141 | $ 15,879 | |
Compensation | $ 6,596 | $ 5,585 | |
Non-compensation | $ 11,545 | $ 10,294 | |
Pre-Tax Income | $ 9,121 | $ 4,951 | |
Compensation Ratio | 24.2 % | 26.8 % | |
Non-compensation Ratio | 42.3 % | 49.4 % | |
Pre-Tax Margin | 33.5 % | 23.8 % | |
AUM (billions) | $ 49.1 | $ 40.4 | |
Revenue:
- Advisory fee revenue increased
8.9% from a year ago due to increased management fees resulting from the higher net value of billable AUM during the current quarter
Assets under Management (AUM):
- AUM increased to
$49.1 billion - The increase in AUM was comprised of higher asset values of
$9.4 billion $0.7 billion
Total Expenses:
- Compensation expenses were up
18.1% from a year ago primarily resulting from increases in incentive compensation - Non-compensation expenses were up
12.2% when compared to the prior year period mostly due to higher external portfolio management costs which are directly related to the increase in AUM
Capital Markets
Capital Markets reported revenue for the current quarter of
('000s) | |||
3Q-24 | 3Q-23 | ||
Revenue | $ 94,576 | ||
Investment Banking | $ 50,098 | $ 36,000 | |
Advisory Fees | $ 32,798 | $ 18,001 | |
Equities Underwriting | $ 12,588 | $ 15,246 | |
Fixed Income Underwriting | $ 4,390 | $ 2,049 | |
Other | $ 322 | $ 704 | |
Sales and Trading | $ 72,755 | $ 58,102 | |
Equities | $ 33,303 | $ 30,985 | |
Fixed Income | $ 39,452 | $ 27,117 | |
Other | $ 1,177 | $ 474 | |
Total Expenses | |||
Compensation | $ 87,649 | $ 72,933 | |
Non-compensation | $ 42,525 | $ 36,897 | |
Pre-Tax Loss | $ (6,144) | $ (15,254) | |
Compensation Ratio | 70.7 % | 77.1 % | |
Non-compensation Ratio | 34.3 % | 39.0 % | |
Pre-Tax Margin | (5.0) % | (16.1) % | |
Revenue:
Investment Banking
- Advisory fees earned from investment banking activities increased
82.2% compared with a year ago primarily due to higher restructuring-related transaction activity - Equity underwriting fees decreased
17.4% when compared with a year ago due to lower new issuance levels - Fixed income underwriting fees were modestly higher than the prior year period
Sales and Trading
- Equities sales and trading revenue increased
7.5% compared with the prior year period mostly due to higher volumes - Fixed income sales and trading revenue increased
45.5% compared with a year ago primarily due to an increase in trading income attributable to higher interest rates and volumes
Total Expenses:
- Compensation expenses increased
20.2% compared with a year ago largely due to costs associated with opportunistic new hires and higher incentive compensation - Non-compensation expenses were
15.3% higher than a year ago primarily due to an increase in interest expense in financing trading inventories
Other Matters
(In millions, except number of shares and per share amounts) | ||||
3Q-24 | 3Q-23 | |||
Capital | ||||
Stockholders' Equity (1) | $ 837.8 | $ 779.3 | ||
Regulatory Net Capital (2) | $ 487.5 | $ 437.1 | ||
Regulatory Excess Net Capital (2) | $ 464.6 | $ 415.4 | ||
Common Stock Repurchases | ||||
Repurchases | $ 0.3 | $ 6.5 | ||
Number of Shares | 5,981 | 168,904 | ||
Average Price | $ 49.30 | $ 38.30 | ||
Period End Shares | 10,331,401 | 10,388,898 | ||
Effective Tax Rate | 30.7 % | 36.2 % | ||
(1) Attributable to Oppenheimer Holdings Inc. | ||||
(2) Attributable to Oppenheimer & Co. Inc. broker-dealer | ||||
- The Board of Directors announced a quarterly dividend to
$0.18 - Compensation expense as a percentage of revenue at
63.7% was relatively flat with the same period last year - On October 10, 2024, the Company completed its redemption of all Senior Secured Notes outstanding (
$113.05 million - The effective tax rate for the current period was
30.7% compared with36.2% for the prior year period. The effective tax rate for the third quarter of 2024 was positively impacted by fewer non-deductible expenses when compared to the prior year period.
Company Information
Oppenheimer Holdings Inc., through its operating subsidiaries, is a leading middle market investment bank and full service broker-dealer that is engaged in a broad range of activities in the financial services industry, including retail securities brokerage, institutional sales and trading, investment banking (corporate and public finance), equity and fixed income research, market-making, trust services, and investment advisory and asset management services. With roots tracing back to 1881, the Company is headquartered in
Forward-Looking Statements
This press release includes certain "forward-looking statements" relating to anticipated future performance. For a discussion of the factors that could cause future performance to be different than anticipated, reference is made to Factors Affecting "Forward-Looking Statements" and Part 1A – Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.
Oppenheimer Holdings Inc. | ||||||||||||
Consolidated Income Statements (Unaudited) | ||||||||||||
('000s, except number of shares and per share amounts) | ||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||
REVENUE | ||||||||||||
Commissions | $ 103,079 | $ 83,933 | 22.8 | $ 295,984 | $ 259,174 | 14.2 | ||||||
Advisory fees | 121,631 | 107,969 | 12.7 | 353,675 | 310,214 | 14.0 | ||||||
Investment banking | 52,185 | 37,411 | 39.5 | 131,841 | 95,354 | 38.3 | ||||||
Bank deposit sweep income | 34,875 | 42,304 | (17.6) | 106,406 | 135,273 | (21.3) | ||||||
Interest | 38,034 | 26,430 | 43.9 | 99,605 | 78,691 | 26.6 | ||||||
Principal transactions, net | 14,364 | 16,892 | (15.0) | 42,672 | 46,635 | (8.5) | ||||||
Other | 9,184 | (2,272) | * | 26,896 | 15,195 | 77.0 | ||||||
Total revenue | 373,352 | 312,667 | 19.4 | 1,057,079 | 940,536 | 12.4 | ||||||
EXPENSES | ||||||||||||
Compensation and related expenses | 237,935 | 195,684 | 21.6 | 680,375 | 589,200 | 15.5 | ||||||
Communications and technology | 24,602 | 22,590 | 8.9 | 73,860 | 67,813 | 8.9 | ||||||
Occupancy and equipment costs | 16,240 | 17,281 | (6.0) | 47,604 | 49,622 | (4.1) | ||||||
Clearing and exchange fees | 7,125 | 6,051 | 17.7 | 19,747 | 18,241 | 8.3 | ||||||
Interest | 24,103 | 19,744 | 22.1 | 66,631 | 50,353 | 32.3 | ||||||
Other | 27,977 | 29,730 | (5.9) | 80,172 | 136,369 | (41.2) | ||||||
Total expenses | 337,982 | 291,080 | 16.1 | 968,389 | 911,598 | 6.2 | ||||||
Pre-Tax Income | 35,370 | 21,587 | 63.8 | 88,690 | 28,938 | 206.5 | ||||||
Income tax provision | 10,862 | 7,808 | 39.1 | 28,172 | 10,262 | 174.5 | ||||||
Net Income | $ 24,508 | $ 13,779 | 77.9 | $ 60,518 | $ 18,676 | 224.0 | ||||||
Less: Net loss attributable to non-controlling interest, net of tax | — | (82) | * | (310) | (403) | * | ||||||
Net income attributable to Oppenheimer Holdings Inc. | $ 24,508 | $ 13,861 | 76.8 | $ 60,828 | $ 19,079 | 218.8 | ||||||
Earnings per share attributable to Oppenheimer Holdings Inc. | ||||||||||||
Basic | $ 2.38 | $ 1.32 | 80.3 | $ 5.87 | $ 1.75 | 235.4 | ||||||
Diluted | $ 2.16 | $ 1.21 | 78.5 | $ 5.45 | $ 1.62 | 236.4 | ||||||
Weighted average number of common shares outstanding | ||||||||||||
Basic | 10,332,927 | 10,519,431 | (1.8) | 10,355,982 | 10,874,055 | (4.8) | ||||||
Diluted | 11,277,865 | 11,440,229 | (1.4) | 11,156,536 | 11,746,337 | (5.0) | ||||||
Period end number of common shares outstanding | 10,331,401 | 10,388,898 | (0.6) | 10,331,401 | 10,388,898 | (0.6) | ||||||
* Percentage not meaningful |
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SOURCE Oppenheimer Holdings Inc.
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