Oppenheimer Holdings Inc. Reports Fourth Quarter and Full Year 2022 Earnings

NEW YORK, Jan. 27, 2023

For the year ended December 31, 2022, the Company reported net income of $32.4 million or $2.77 basic earnings per share compared with net income of $159.0 million or $12.57 basic earnings per share for the year ended December 31, 2021. Revenue for the year ended December 31, 2022 was $1.1 billion compared to revenue of $1.4 billion for the year ended December 31, 2021, a decrease of 20.3%.

Summary Operating Results (Unaudited)
('000s, except per share amounts or otherwise indicated)
	4Q-22	4Q-21	FY-22 ARIVA.DE Börsen-Geflüster Kurse Oppenheimer Holdings 44,82 $ -0,69%	FY-21
Revenue	$ 313,580	$ 365,118	$  1,110,941	$  1,394,035
Compensation Expense	$ 197,683	$ 193,787	$ 740,827	$ 886,840
Non-compensation Expense	$   85,625	$   79,379	$ 324,560	$ 282,554
Pre-Tax Income	$   30,272	$   91,952	$   45,554	$ 224,641
Income Taxes Provision	$     7,885	$   29,055	$   13,444	$   65,677
Net Income (1)	$   22,413	$   62,897	$   32,351	$ 158,964
Earnings Per Share (Basic) (1)	$       2.04	$       4.99	$       2.77	$     12.57
Earnings Per Share (Diluted) (1)	$       1.87	$       4.61	$       2.57	$     11.70
Book Value Per Share	$     72.41	$     65.66	$     72.41	$     65.66
Tangible Book Value Per Share (2)	$     56.91	$     52.11	$     56.91	$     52.11
(1) Attributable to Oppenheimer Holdings Inc.
(2) Represents book value less goodwill and intangible assets divided by number of shares outstanding.

Highlights

• Reduced revenue, net income, and earnings per share for the fourth quarter and full year 2022 reflected lower transaction levels and lower valuations in client portfolios and fewer investment banking transactions, partially offset by the positive impact of the rising interest rate environment on our interest-sensitive revenues
• Record bank deposit sweep income for the fourth quarter driven by higher short-term interest rates
• Higher non-compensation expenses for the full year 2022 largely due to the impact of a previously disclosed adverse arbitration decision in the third quarter, which has since been appealed
• Client assets under administration and under management were both at reduced levels at December 31, 2022
• The Company repurchased 1,684,287 shares of Class A non-voting common stock during the full year 2022 under its previously announced share repurchase program
• Book value and tangible book value per share reached record levels at December 31, 2022 as a result of positive earnings and share repurchases

Albert G. Lowenthal, Chairman and CEO commented, "The results for the full year 2022 are significantly reduced from the prior year's record levels, largely reflecting the impact of challenging macroeconomic conditions as well as an adverse arbitration decision in 2022. Concerns around whether inflation, rising interest rates and other geopolitical tensions could induce a recession weighed negatively on market sentiment during the year.  This resulted in significant declines in transaction volumes and in the valuations of the equity and fixed income markets, which drove a meaningful reduction in both our transaction based revenues and advisory fee revenues. The volatile markets also led to a cooling of equity IPOs, secondary offerings and M&A transaction activity, which negatively impacted our capital markets income. 

Nevertheless, in spite of these headwinds, we were able to deliver profitable results for the year owing to the diversity and countercyclical nature of our revenue streams. In particular, bank deposit sweep income and interest income on margin loans increased significantly throughout the year, as both received a benefit from the short-term interest rate increases enacted by the Federal Reserve. Importantly, while we experienced higher legal expenses during the year, we remain focused on managing our controllable costs and maintaining discipline on our overall expense levels.  

The Company continues to maintain a strong balance sheet with a significant excess in regulatory capital. During the year, the Company took advantage of the lower level of its share price to purchase 1,684,287 shares (15%) of its Class A non-voting common stock at an average price of $36.00 per share in the open market under its share repurchase program. This resulted in 10,868,556 Class A non-voting common shares remaining outstanding at December 31, 2022. We remain confident in the strength of our brand, the resiliency of our businesses and our ability to continue to provide essential investment services to our clients." 

Segment Results (Unaudited)
('000s, except per share amounts or otherwise indicated)
	4Q-22	4Q-21	FY-22	FY-21
Private Client
Revenue	$        201,748	$        173,310	$        675,680	$        665,060
Pre-Tax Income	$          49,331	$          17,784	$        142,250	$        101,146
Assets Under Administration (billions)	$            105.0	$            122.1	$            105.0	$            122.1
Asset Management
Revenue	$          22,940	$          27,930	$          99,242	$        104,598
Pre-Tax Income	$            9,837	$          10,270	$          35,753	$          35,874 Werbung Mehr Nachrichten zur Oppenheimer Holdings Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 09:34 - wallstreet:online ... Herausragende Bedingungen: Polen - Unterbewertet und attraktiv 18.05.24 - Jörg Schulte **MINEN-AKTIEN EXPLODIEREN **: KAUF-ALARM: GOLD knallt hoch! GOLD-MINEN vor Jahrhundert-Hausse?! Diese Aktie sofort kaufen! 18.05.24 - Boersia.de Enphase Energy Aktie: Führungskraft veräußert Anteile