{"id":485160,"date":"2021-04-30T08:05:13","date_gmt":"2021-04-30T12:05:13","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/oppenheimer-holdings-inc-reports-first-quarter-2021-earnings\/"},"modified":"2021-04-30T08:05:13","modified_gmt":"2021-04-30T12:05:13","slug":"oppenheimer-holdings-inc-reports-first-quarter-2021-earnings","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/oppenheimer-holdings-inc-reports-first-quarter-2021-earnings\/","title":{"rendered":"Oppenheimer Holdings Inc. Reports First Quarter 2021 Earnings"},"content":{"rendered":"
\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n NEW YORK<\/span>, April 30, 2021<\/span> \/PRNewswire\/ –\u00a0Oppenheimer Holdings Inc. (NYSE: OPY) (the “Company” or “Firm”) today reported net income of $38.7 million<\/span> or $3.07<\/span> basic earnings per share for the first quarter of 2021, an increase of approximately 400%, compared with net income of $7.8 million<\/span> or $0.61<\/span> basic earnings per share for the first quarter of 2020. Revenue for the first quarter of 2021 was $373.3 million<\/span>, an increase of 59%, compared to revenue of $234.8 million<\/span> for the first quarter of 2020.<\/p>\n

\n
\n Albert G. Lowenthal<\/span>
\n <\/b>, Chairman and CEO commented, “The Firm produced its best first quarter in its history following its best year in its history in 2020.\u00a0 Our performance reflected strong contributions across all of our businesses led by our Investment Banking Division.\u00a0 Our operating results were powered by a rapidly improving economy and optimism around the end of the pandemic as the availability of vaccines becomes more widespread.\u00a0 With continued stimulus spending, potential additional “infrastructure” spending, and a very accommodative Federal Reserve, investors moved equity markets to new highs with active engagement by investors of all types.\u00a0 <\/i><\/p>\n

\n The outstanding results were driven by very robust equity underwriting activity in the healthcare and technology sectors which included our expanded activity assisting companies going public through special purpose acquisition companies (SPACs).\u00a0 Our M&A advisory business also picked up considerably with large completed transactions in healthcare, technology, and consumer products.\u00a0 Institutional equities sales and trading activity continued to be strong as volatility and activity remained elevated during the period.\u00a0 Our employees in Capital Markets produced exceptional results this quarter.<\/i>\n <\/p>\n

\n Equity markets were up 5.8% during the period, contributing to record assets under management at March 31, 2021<\/span>, which will drive our advisory fee revenue for April 2021.\u00a0 Our Wealth Management business performed extremely well with solid transaction-based revenue as well as record fee-based revenue based on asset values at year end.\u00a0 Wealth Management’s results were tempered by continued low short-term interest rates which substantially impacted the contribution from client margin borrowing and from deposits in FDIC-insured bank deposit accounts.\u00a0 The operating results were offset by increased compensation costs of $11.6 million<\/span> during the quarter driven by increases in the fair value of a share-based compensation plan linked to the Company’s stock price which ended the period at $40.05<\/span>.\u00a0 All in all, we are extremely pleased with the performance of the business and the resilience of our employees as we continue to deal with the ongoing challenges associated with the pandemic.\u00a0 We are optimistic about the business going forward given the continued strength in the equity markets amid the backdrop of an improving U.S. economy.”<\/i>\n <\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\n
\n Summary Operating Results (Unaudited)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n (‘000s, except per share amounts or otherwise indicated)<\/i>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n Firm<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 1Q-21<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 1Q-20<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Revenue<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 373,282<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 234,770<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Compensation Expense<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 255,601<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 157,676<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Non-compensation Expense<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 65,554<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 66,871<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Pre-Tax Income<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 52,127<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 10,223<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Income Taxes<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 13,469<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 2,405<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net Income<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 38,658<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 7,818<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Earnings Per Share (Basic)<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 3.07<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.61<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Earnings Per Share (Diluted)<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 2.91<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.58<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Book Value Per Share<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 56.74<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 46.16<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Tangible Book Value Per Share (1)<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 43.34<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 32.79<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n Private Client<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Revenue<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 164,023<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 141,418<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Pre-Tax Income <\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 24,263<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 33,369<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Assets Under Administration (billions)<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 111.4<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 79.1<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n Asset Management<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Revenue<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 24,230<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 19,276<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Pre-Tax Income <\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 7,553<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 4,305<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Assets Under Management (billions)<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 40.2<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 28.0<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n Capital Markets<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Revenue<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 183,599<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 75,542<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Pre-Tax Income (Loss)<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 49,991<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (143)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n (1) Represents book value less goodwill and intangible assets divided by number of shares outstanding.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Highlights<\/b>\n <\/p>\n