Oppenheimer Reports 76% Rise in Net Income

By Tamara Parker • Friday, October 25 10:22 • Permanent Link

Oppenheimer Holdings Inc. has reported a significant increase in its net income for the third quarter of 2024 compared to the same period in 2023. The net income for the third quarter of 2024 was $24.5 million, representing a substantial rise from $13.9 million in the third quarter of 2023.

The company's revenue for the third quarter of 2024 also saw a notable increase, reaching $373.4 million, compared to $312.7 million for the third quarter of 2023, reflecting a 19.4% growth.

The private client segment reported revenue of $218.8 million for the third quarter of 2024, marking a 13.2% increase compared to the same period in 2023. The segment's pre-tax income for the current quarter was $62.9 million, resulting in a pre-tax margin of 28.8%.

Assets under administration and under management were at record levels at September 30, 2024, reaching $129.8 billion and $49.1 billion, respectively, benefiting from market appreciation.

The asset management segment reported revenue of $27.3 million for the third quarter of 2024, indicating a 30.9% increase compared to a year ago. The segment's pre-tax income also experienced a substantial rise, reaching $9.1 million, an increase of 84.2% compared with the prior year period.

In the capital markets segment, revenue for the third quarter of 2024 amounted to $124.0 million, reflecting a 31.1% increase from the same period in 2023. The segment's pre-tax loss was $6.1 million, an improvement from a pre-tax loss of $15.3 million a year ago.

The board of directors announced a quarterly dividend of $0.18 per share payable on November 22, 2024, to holders of class A non-voting and class B voting common stock of record on November 8, 2024.

Furthermore, the company completed the redemption of all senior secured notes outstanding ($113.05 million) at their par amounts plus accrued and unpaid interest on October 10, 2024.

The effective tax rate for the third quarter of 2024 was 30.7%, compared with 36.2% for the prior year period. This decrease in the effective tax rate was positively impacted by fewer non-deductible expenses compared to the prior year period.

Today the company's shares have moved 4.7% to a price of $50.77. For the full picture, make sure to review Oppenheimer's 8-K report.

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