Oppenheimer Holdings Inc. Reports Third Quarter 2024 Earnings

Core Insights - Oppenheimer Holdings Inc. reported a net income of $24.5 million or $2.38 basic earnings per share for Q3 2024, a significant increase from $13.9 million or $1.32 per share in Q3 2023, with revenue rising 19.4% to $373.4 million from $312.7 million in the same period last year [1][6]. Financial Performance - Revenue for Q3 2024 was $373.4 million, up 19.4% from $312.7 million in Q3 2023 [1][6]. - Net income increased to $24.5 million from $13.9 million year-over-year, representing a 76.8% growth [1][6]. - Basic earnings per share rose to $2.38 from $1.32, marking an 80.3% increase [1][6]. - Pre-tax income for the quarter was $35.4 million, up 63.8% from $21.6 million in the previous year [6][18]. Wealth Management Segment - Private Client revenue reached $218.8 million, a 13.2% increase compared to the previous year, driven by higher advisory fees and increased commission revenue [5][6]. - Assets Under Management (AUM) grew to $49.1 billion, a record high, benefiting from market appreciation [9][10]. - Pre-tax income for the Private Client segment was $62.9 million, with a pre-tax margin of 28.8% [5][6]. Investment Banking and Capital Markets - Investment banking revenues increased significantly, with advisory fees rising 82.2% due to higher restructuring-related transaction activity [12][10]. - Capital Markets reported revenue of $124.0 million, a 31.1% increase from the prior year, with a pre-tax loss of $6.1 million, improved from a loss of $15.3 million [10][11]. - Equity underwriting fees decreased by 17.4% due to lower issuance levels, while fixed income underwriting fees saw modest growth [12][10]. Expense Management - Total expenses for Q3 2024 were $337.9 million, up 16.1% from $291.1 million in Q3 2023, with compensation expenses increasing by 21.6% [6][18]. - Non-compensation expenses rose by 4.5%, primarily due to higher interest and technology-related costs [8][10]. - The effective tax rate improved to 30.7% from 36.2% in the prior year, positively impacted by fewer non-deductible expenses [15][18]. Balance Sheet and Capital Management - The company announced plans to redeem all outstanding senior secured notes amounting to $113.05 million, which was completed on October 10, 2024 [4][15]. - Book value per share reached a new high of $81.10, up from $75.01 in the previous year [6][4]. - Total stockholder's equity increased to $837.8 million from $779.3 million year-over-year [13][15].