{"id":702536,"date":"2022-10-28T08:05:09","date_gmt":"2022-10-28T12:05:09","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/oppenheimer-holdings-inc-reports-third-quarter-2022-earnings\/"},"modified":"2022-10-28T08:05:09","modified_gmt":"2022-10-28T12:05:09","slug":"oppenheimer-holdings-inc-reports-third-quarter-2022-earnings","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/oppenheimer-holdings-inc-reports-third-quarter-2022-earnings\/","title":{"rendered":"Oppenheimer Holdings Inc. Reports Third Quarter 2022 Earnings"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n
\n NEW YORK<\/span>
\n <\/span>, Oct. 28, 2022<\/span><\/span> \/PRNewswire\/ – Oppenheimer Holdings Inc. (NYSE: OPY) (the “Company” or “Firm”) today reported net income of $4.5 million<\/span> or $0.40<\/span> basic earnings per share for the third quarter of 2022, compared with net income of $26.3 million<\/span> or $2.07<\/span> basic earnings per share for the third quarter of 2021. Revenue for the third quarter of 2022 was $294.1 million<\/span>, a decrease of 6.7%, compared to revenue of $315.3 million<\/span> for the third quarter of 2021.<\/p>\n

\n
\n Albert G. Lowenthal<\/span>
\n <\/b>, Chairman and CEO commented, “The results for the quarter were significantly impacted by an adverse arbitration decision, but we were able to deliver profitable results reflecting the diversity and general health of our business. Volatile market conditions and emerging economic headwinds reduced valuations in both equity and fixed income markets. The high rate of inflation resulted in the Federal Reserve raising interest rates at the fastest speed in over 40 years with multiple 75 basis point increases during the quarter. Our Wealth Management business saw a benefit from the higher interest rate environment, as income from our FDIC-insured bank deposit program and interest income on margin loans were markedly greater than the prior year although this was offset to some extent by lower activity levels and lower valuations in client portfolios which drive fee income.<\/i><\/p>\n

\n The macroeconomic environment drove all major equity indices into bear market territory during the third quarter. The declining valuations negatively impacted our advisory fee revenues. The volatile markets also led to a marked slowdown in equity IPOs and secondary offerings and a significant decline in capital markets income. Investment banking advisory fees, while lower than the record Q3 results recorded in 2021, picked up considerably from the second quarter.\u00a0 <\/i>\n <\/p>\n

\n The Company maintains a strong balance sheet with near record regulatory capital despite the volatile market environment and the impact of an adverse arbitration decision. The Company took advantage of the lower level of its share price to purchase 413,052 shares (3%) of its Class A non-voting common stock at an average price of $33.86<\/span> per share in the open market under its share repurchase program resulting in 10,874,990 Class A non-voting common shares outstanding at September 30, 2022<\/span>. We remain confident in the resiliency of our business and our ability to continue to provide essential investment services to our clients<\/i>.“<\/i><\/p>\n

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\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 3Q-22<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 3Q-21<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n $ 294,111<\/span>\n <\/p>\n<\/td>\n

\n

\n $ 315,342<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n $ 179,134<\/span>\n <\/p>\n<\/td>\n

\n

\n $ 206,312<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n $ 107,739<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0 \u00a071,636<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n $\u00a0 \u00a0 \u00a07,238<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0 \u00a037,394<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n $\u00a0 \u00a0 \u00a02,573<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0 \u00a011,144<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net Income (1)<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0 \u00a0 \u00a04,520<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0 \u00a026,250<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Earnings Per Share (Basic) (1)<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0 \u00a0 \u00a0 \u00a00.40<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0 \u00a0 \u00a0 \u00a02.07<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Earnings Per Share (Diluted) (1)<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0 \u00a0 \u00a0 \u00a00.37<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0 \u00a0 \u00a0 \u00a01.92<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n $\u00a0 \u00a0 \u00a070.23<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0 \u00a0 \u00a061.43<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Tangible Book Value Per Share (2)<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0 \u00a0 \u00a054.74<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0 \u00a0 \u00a047.95<\/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 $ 178,614<\/span>\n <\/p>\n<\/td>\n

\n

\n $ 160,864<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n $\u00a0 \u00a029,973<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0 \u00a037,426<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n $\u00a0 \u00a0 \u00a0100.3<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0 \u00a0 \u00a0117.8<\/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 $\u00a0 \u00a024,870<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0 \u00a026,894<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n $\u00a0 \u00a0 \u00a08,322<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0 \u00a0 \u00a09,412<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n $\u00a0 \u00a0 \u00a0 \u00a035.3<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0 \u00a0 \u00a0 \u00a043.6<\/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 $\u00a0 \u00a090,947<\/span>\n <\/p>\n<\/td>\n

\n

\n $ 128,585<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n $\u00a0 \u00a0 \u00a02,401<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0 \u00a017,888<\/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) Attributable to Oppenheimer Holdings Inc.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n (2) 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

\u00a0<\/p>\n

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