Oppenheimer (OPY) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $10.3 million ($0.99 per share), reversing a net loss of $9.4 million in Q2 2023, with revenue up 8% year-over-year to $330.6 million.

• Record assets under administration ($126.0 billion) and management ($47.5 billion) were achieved, driven by strong equity markets and positive net flows.

• Book value and tangible book value per share reached new highs at $78.63 and $61.56, respectively.

• Board approved a 20% increase in the quarterly dividend to $0.18 per share, effective 2Q-24, payable August 23, 2024.

• Advisory fees and investment banking revenues increased, while bank deposit sweep income declined due to lower balances.

Financial highlights

• Compensation expenses rose 17.9% year-over-year to $220.7 million, mainly due to higher incentive and share-based compensation.

• Non-compensation expenses fell 28.1% to $94.0 million, mainly from lower legal costs.

• Earnings per share (basic) was $0.99, and diluted EPS was $0.92, compared to $(0.85) in Q2 2023.

• Pre-tax income was $15.9 million, compared to a pre-tax loss of $11.7 million in Q2 2023.

• Assets under administration: $126.0 billion (+11.3%); assets under management: $47.5 billion (+15.3%).

Outlook and guidance

• Management remains focused on expanding private client and asset management businesses through hiring and targeted acquisitions.

• Continued investment in technology, compliance, and senior personnel to support future growth as capital markets recover.

• Dividend increase signals confidence in ongoing earnings strength.