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Revenues Dip At Oppenheimer's Private Clients Arm

Editorial Staff, August 3, 2020


The results in the private clients segment showed that heightened market volatility produced more transactions and need for clients to engage with advisors - boosting commission revenues.

The private client arm of Oppenheimer Holdings, the New York-based group that also provides investment banking and asset management, late last week reported a 12.4 per cent year-on-year drop in revenue, to $141 million in the second quarter of 2020. 

Advisory fees fell, to $58.3 million from $62.08 million, the group said. On the other hand, commissions rose to $50.3 million from $47.2 million over the period. Higher market volatility and a desire by clients to speak with advisors during the pandemic helped boost commissions, it said. 

Total costs slipped to $117.5 million in Q2 from $118.5 million, Oppenheimer said in a statement. 

Assets under administration at the private client business rose to $89.7 billion from $87.3 billion. Advisor headcount slipped to 1,029 from 1,036.

For the Oppenheimer Holdings business as a whole, net income for the quarter was $17.6 million, or $1.40 basic earnings per share, compared with net income of $12.4 million or $0.95 basic earnings per share a year earlier.

“While navigating new working arrangements, whether remotely or in a less populated office environment, the firm's associates were able to work productively and contribute to what turned out to be a very solid quarter, both in terms of revenue and profit, given the headwinds created by a very low interest rate environment. Continued volatility in the equity markets and huge demand for capital raising led to stronger than expected operating results for the period,” Albert G Lowenthal, chairman and CEO, said.

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