NEW YORK, April 26, 2024 /CNW/ - Oppenheimer Holdings Inc. (NYSE:OPY) (the "Company" or "Firm") today reported net income of $26.1 million or $2.50 basic earnings per share for the first quarter of 2024, an increase of approximately 78.2%, compared with net income of $14.6 million or $1.32 basic earnings per share for the first quarter of 2023. Revenue for the first quarter of 2024 was $353.1 million, an increase of 9.8%, compared to revenue of $321.7 million for the first quarter of 2023. Albert G. Lowenthal, Chairman and CEO commented, "The Firm registered outstanding operating results for the first quarter of 2024, reflecting the solid performance of our investment banking franchise amidst an improving capital market and strong results from our Wealth Management business responding to the impact of rising equity markets. Our overall performance was favorably impacted by improving macroeconomic conditions, highlighted by the continued rise of the equity markets with the S&P 500 reaching record highs owing to positive economic data and expectations that the Federal Reserve will pivot to reducing rates in the second half of the year. The stock market rally propelled assets under management within our Wealth Management business to all-time highs, which drove a large increase in AUM-based advisory fee revenue when compared with the prior year period.  We also saw encouraging signs of improvement in the capital raising environment, as our investment banking results were boosted by a meaningful uptick in the number of private placement and underwriting transactions in our pipeline that crystallized during the quarter. The still-high interest rate environment boded well for our fixed income division, which saw continued strength within its sales and trading revenue largely due to higher volumes and increased volatility. Higher rates also benefited several of our other interest-sensitive revenue streams, though we did see a pullback in FDIC sweep deposit balances which reduced these revenues.  The Company ended the quarter on a high note with record book value per share levels resulting from positive earnings and share repurchases. Our strong balance sheet and ample capital levels have us well-positioned for growth and to continue providing value-added investment services to our clients."  Summary Operating Results (Unaudited) ('000s, except per share amounts or otherwise indicated) Firm 1Q-24 1Q-23 Revenue $  353,138 $  321,679 Compensation Expenses $  221,713 $  206,292 Non-compensation Expenses $    93,970 $    96,338 Pre-Tax Income $    37,455 $    19,049 Income Taxes $    11,711 $      4,585 Net Income (1) $    26,054 $    14,617 Earnings Per Share (Basic) (1) $        2.50 $        1.32 Earnings Per Share (Diluted) (1) $        2.37 $        1.22 Book Value Per Share $      77.47 $      72.27 Tangible Book Value Per Share (2) $      60.41 $      56.92 Private Client Revenue $  213,033 $  203,421 Pre-Tax Income $    68,151 $    54,456 Assets Under Administration (billions) $      124.9 $      108.9 Asset Management Revenue $    24,928 $    23,959 Pre-Tax Income $      7,634 $      6,481 Assets Under Management (billions) $        46.6 $        39.3 Capital Markets Revenue $  112,083 $    90,282 Pre-Tax Income (Loss) $    (6,702) $  (15,477) (1) Attributable to Oppenheimer Holdings Inc. (2) Represents book value less goodwill and intangible assets divided by number of shares outstanding. Highlights Increased revenue for the first quarter of 2024 was primarily driven by a significant improvement in private placement and underwriting-related fees generated by our investment banking business, higher advisory fees attributable to a rise in billable AUM as well as continued strength in fixed income sales and trading revenue. Assets under administration and under management were both at record levels at March 31, 2024, benefiting from market appreciation and positive net asset flows. Compensation expenses increased from the prior year quarter largely as a result of higher base salary expense associated with opportunistic new hires and inflationary pressures on wages in addition to higher production-related expenses. Non-compensation expenses decreased from the prior year quarter primarily due to lower legal costs partially offset by higher interest expense. Book value and tangible book value per share reached new record highs as a result of positive earnings and share repurchases. Private Client Private Client reported revenue for the current quarter of $213.0 million, 4.7% higher compared with a year ago mostly due to higher advisory fees driven by appreciation in AUM and an increase in commission revenue. Pre-tax income of $68.2 million in the current quarter resulted in a pre-tax margin of 32.0%. Financial advisor headcount at the end of the current quarter was 936 compared to 959 and 931 at the end of the first quarter of 2023 and fourth quarter of 2023, respectively. ('000s, except otherwise indicated) 1Q-24 1Q-23 Revenue $ 213,033 $203,421 Commissions $ 52,794 $ 46,636 Advisory Fees $ 88,876 $ 76,583 Bank Deposit Sweep Income $ 36,685 $ 48,909 Interest $ 20,196 $ 20,579 Other $ 14,482 $ 10,714 Total Expenses $ 144,882 $148,965 Compensation $109,148 $ 95,074 Non-compensation $35,734 $ 53,891 Pre-Tax Income $ 68,151 $ 54,456 Compensation Ratio 51.2 % 46.7 % Non-compensation Ratio 16.8 % 26.5 % Pre-Tax Margin 32.0 % 26.8 %