NEW YORK, Jan. 31, 2025 /PRNewswire/ – Oppenheimer Holdings Inc. (NYSE: OPY) (the “Company” or “Firm”) today reported net income of $10.7 million or $1.04 basic earnings per share for the fourth quarter of 2024 compared with net income of $11.1 million or $1.07 basic earnings per share for the fourth quarter of 2023. Fourth quarter and full year 2024 results were significantly impacted by higher pre-tax compensation expenses for liability-based awards totaling $20.5 million and $32.6 million, respectively, attributable to an increase in OPY Class A share price. Revenue for the fourth quarter of 2024 was $375.4 million compared to revenue of $308.3 million for the fourth quarter of 2023, an increase of 21.8%.
For the year ended December 31, 2024, the Company reported net income of $71.6 million or $6.91 basic earnings per share compared with net income of $30.2 million or $2.81 basic earnings per share for the year ended December 31, 2023. Revenue for the year ended December 31, 2024 was $1.4 billion compared to revenue of $1.2 billion for the year ended December 31, 2023, an increase of 14.7%.
Effective in the fourth quarter of 2024, the Company combined the former Private Client and Asset Management business segments to form the Wealth Management segment.
Summary Operating Results (Unaudited)
(‘000s, except per share amounts or otherwise indicated)
4Q-24
4Q-23
FY-24
FY-23
Revenue
$ 375,417
$ 308,289
$ 1,432,496
$ 1,248,825
Compensation Expense
$ 256,439
$ 193,196
$ 936,814
$ 782,396
Non-compensation Expense
$ 101,911
$ 97,261
$ 389,925
$ 419,659
Pre-Tax Income
$ 17,067
$ 17,832
$ 105,757
$ 46,770
Income Taxes Provision
$ 6,338
$ 6,236
$ 34,510
$ 16,498
Net Income (1)
$ 10,729
$ 11,100
$ 71,557
$ 30,179
Adjusted Net Income (1)(a)
N/A
$ 16,100
N/A
$ 43,179
Earnings Per Share (Basic) (1)
$ 1.04
$ 1.07
$ 6.91
$ 2.81
Adjusted Earnings Per Share (Basic) (1)(a)
N/A
$ 1.56
N/A
$ 4.02
Earnings Per Share (Diluted) (1)
$ 0.92
$ 0.98
$ 6.37
$ 2.59
Adjusted Earnings Per Share (Diluted) (1)(a)
N/A
$ 1.42
N/A
$ 3.71
Book Value Per Share
$ 82.31
$ 76.72
$ 82.31
$ 76.72
Tangible Book Value Per Share (2)
$ 64.96
$ 59.54
$ 64.96
$ 59.54
(1)
Attributable to Oppenheimer Holdings Inc.
(2)
Represents book value less goodwill and intangible assets divided by number of shares outstanding
Highlights
Albert G. Lowenthal, Chairman and CEO commented, “The Firm registered strong results of operations for the full year 2024 on the back of record high revenue generated by our diverse businesses. Our reported results were negatively impacted (with full year expense totaling $32.6 million pre-tax) by the increase in our stock price in 2024 and its conversion to expense in certain liability awards previously made to employees, making the recent recognition of our stock by investors, a mixed blessing.
Our results were buoyed by an equities market that had a strong increase in popular averages, as lower interest rates and a strong domestic economy powered the S&P 500 to 57 new record closes and its best consecutive years in over two decades. Equity markets were led by significant increases in the performance of the “Magnificent Seven,” propelled by the expectation of the impact of A.I. on the economy in future years. Most economic indicators currently suggest that the economy is well on its way to achieving a “soft landing” as we move into 2025.
The continued rise of the markets drove the outstanding results shown in our Wealth Management business. Asset-based advisory fees, in particular, grew significantly from the prior year in large part due to AUM reaching a fourth-consecutive all-time high at year-end. Retail trading volumes also remained elevated throughout the year, boosting transaction-based commissions. However, these positive drivers were offset to a degree by both lower interest-sensitive sweep income owing to lower average sweep balances, as well as higher share-based compensation expenses associated with stock appreciation rights granted to financial advisors. In the fourth quarter of 2024 alone, we recognized $20.5 million of expense related to these stock appreciation rights due to the significant increase in share price of our Class A non-voting common stock. In comparison, we recognized a relatively modest expense of $4.3 million in the fourth quarter of 2023.
In our Capital Markets businesses, we saw our 2024 investment banking results benefit from a somewhat improved market environment which drove higher new issuance and transaction activity levels when compared to the prior year. Though our revenue increased in 2024, we believe that capital markets conditions (and related transaction volumes) have yet to reach their full potential and expect that our business will stand to benefit when they do. Our institutional trading business also performed quite well in 2024, with higher sales and trading revenue attributed to greater volumes and increased market share.
Overall, we are extremely pleased with the accomplishments that we achieved in 2024. We ended the year with record revenue, AUM, stockholders’ equity and book value per share levels, and a significantly de-levered balance sheet after completing the redemption of our Senior Secured Notes earlier in the fourth quarter of 2024. We remain optimistic about our future and look forward to continuing to serve our clients.”
Segment Results (Unaudited)
(‘000s, except per share amounts or otherwise indicated)
4Q-24
4Q-23
FY-24
FY-23
Wealth Management(b)
Revenue
$ 253,515
$ 225,280
$ 972,052
$ 890,187
Pre-Tax Income
$ 53,708
$ 60,070
$ 265,739
$ 218,535
Assets Under Administration (billions)
$ 129.5
$ 118.2
$ 129.5
$ 118.2
Asset Under Management (billions)
$ 49.4
$ 43.9
$ 49.4
$ 43.9
Capital Markets
Revenue
$ 119,325
$ 81,457
$ 447,579
$ 345,897
Pre-Tax Loss
$ (4,975)
$ (18,179)
$ (39,596)
$ (62,961)
Fourth Quarter Results
Wealth Management(b)
Wealth Management reported revenue of $253.5 million for the fourth quarter of 2024, 12.5% higher compared with a year ago. Pre-tax income was $53.7 million, a decrease of 10.6% compared with a year ago. Financial advisor headcount was 931 at the end of the fourth quarter of 2024, unchanged from the fourth quarter of 2023, representing the first year in many in which the addition of new advisors offset the retirement of existing advisors.
(‘000s; except otherwise indicated)
4Q-24
4Q-23
Revenue
$ 253,515
$ 225,280
Commissions
$ 61,020
$ 50,098
Advisory Fees
$ 129,748
$ 105,259
Bank Deposit Sweep Income
$ 32,364
$ 37,534
Interest
$ 22,561
$ 20,875
Other
$ 7,822
$ 11,514
Total Expenses
$ 199,807
$ 165,210
Compensation
$ 149,846
$ 117,563
Non-compensation
$ 49,961
$ 47,647
Pre-Tax Income
$ 53,708
$ 60,070
Compensation Ratio
59.1 %
52.2 %
Non-compensation Ratio
19.7 %
21.1 %
Pre-Tax Margin
21.2 %
26.7 %
Assets Under Administration (billions)
$ 129.5
$ 118.2
Assets Under Management (billions)
$ 49.4
$ 43.9
Cash Sweep Balances (billions)
$ 3.0
$ 3.4
Revenue:
Assets under Management (AUM):
Total Expenses:
Capital Markets
Capital Markets reported revenue of $119.3 million for the fourth quarter of 2024, 46.5% higher compared with a year ago. Pre-tax loss was $5.0 million compared with a pre-tax loss of $18.2 million a year ago reflecting the costs associated with adding experienced new personnel.
(‘000s; except otherwise indicated)
4Q-24
4Q-23
Revenue
$ 119,325
$ 81,457
Investment Banking
$ 42,070
$ 20,704
Advisory Fees
$ 30,266
$ 12,740
Equities Underwriting
$ 9,206
$ 5,837
Fixed Income Underwriting
$ 2,192
$ 1,781
Other
$ 406
$ 346
Sales and Trading
$ 76,082
$ 60,170
Equities
$ 38,035
$ 31,092
Fixed Income
$ 38,047
$ 29,078
Other
$ 1,173
$ 583
Total Expenses
$ 124,300
$ 99,636
Compensation
$ 81,085
$ 58,346
Non-compensation
$ 43,215
$ 41,290
Pre-Tax Loss
$ (4,975)
$ (18,179)
Compensation Ratio
68.0 %
71.6 %
Non-compensation Ratio
36.2 %
50.7 %
Pre-Tax Margin
(4.2) %
(22.3) %
Revenue:
Investment Banking
Sales and Trading
Total Expenses:
Full Year Results
Wealth Management(b)
Wealth Management reported revenue of $972.1 million for the year ended December 31, 2024, 9.2% higher compared with the prior year. Pre-tax income was $265.7 million, an increase of 21.6% from the prior year.
(‘000s; except otherwise indicated)
FY-24
FY-23
Revenue
$ 972,052
$ 890,187
Commissions
$ 221,558
$ 186,496
Advisory Fees
$ 483,390
$ 415,450
Bank Deposit Sweep Income
$ 138,771
$ 172,807
Interest
$ 88,714
$ 85,105
Other
$ 39,619
$ 30,329
Total Expenses
$ 706,313
$ 671,652
Compensation
$ 514,227
$ 424,031
Non-compensation
$ 192,086
$ 247,621
Pre-Tax Income
$ 265,739
$ 218,535
Compensation Ratio
52.9 %
47.6 %
Non-compensation Ratio
19.8 %
27.8 %
Pre-Tax Margin
27.3 %
24.6 %
Assets Under Administration (billions)
$ 129.5
$ 118.2
Assets Under Management (billions)
$ 49.4
$ 43.9
Cash Sweep Balances (billions)
$ 3.0
$ 3.4
Revenue:
Assets under Management (AUM):
Total Expenses:
Capital Markets
Capital Markets reported revenue of $447.6 million for the year ended December 31, 2024, 29.4% higher compared with the prior year. Pre-tax loss was $39.6 million compared with pre-tax loss of $63.0 million for the prior year.
(‘000s; except otherwise indicated)
FY-24
FY-23
Revenue
$ 447,579
$ 345,897
Investment Banking
$ 166,785
$ 111,734
Advisory Fees
$ 107,222
$ 69,623
Equities Underwriting
$ 46,181
$ 33,904
Fixed Income Underwriting
$ 11,844
$ 6,594
Other
$ 1,538
$ 1,613
Sales and Trading
$ 277,262
$ 231,867
Equities
$ 134,854
$ 128,216
Fixed Income
$ 142,408
$ 103,651
Other
$ 3,532
$ 2,296
Total Expenses
$ 487,175
$ 408,858
Compensation
$ 323,612
$ 269,330
Non-compensation
$ 163,563
$ 139,528
Pre-Tax Loss
$ (39,596)
$ (62,961)
