Oppenheimer Holdings Inc. Reports First Quarter 2013 Earnings and Announces Quarterly Dividend

 Oppenheimer Holdings Inc. Reports First Quarter 2013 Earnings and Announces
                              Quarterly Dividend

PR Newswire

NEW YORK, April 26, 2013

NEW YORK, April 26, 2013 /PRNewswire/ - Oppenheimer Holdings Inc. (NYSE: OPY)
today reported net income of $3.7 million or $0.27 per share for the first
quarter of 2013 compared with a net loss of $4.7 million or $(0.34) per share
for the first quarter of 2012. Revenue for the first quarter of 2013 was
$239.1 million compared with $238.2 million in the first quarter of 2012, an
increase of 0.4%.

                                                     
           Summary Operating Results (Unaudited)
                                                     
                              For the 3-Months Ended
('000s, except EPS)        3/31/13     3/31/12  % Change
Revenue                   $ 239,146  $ 238,214       0.4
Net Income (Loss)^(1)     $   3,663  $ (4,657)        *
Earnings Per Share^(1)                             
   Basic                 $    0.27  $  (0.34)        *
   Diluted               $    0.26  $  (0.34)        *
                                           
                                      As of
Book Value Per Share^(1)   3/31/13    12/31/12  % Change
   Book Value            $   37.07  $   36.80       0.7
   Tangible Book Value   $   24.61  $   24.34       1.1
                                           

(1) Attributable to Oppenheimer Holdings Inc.
* Not comparable

Against a backdrop of continuing  economic and credit problems across  Europe, 
budgetary and "fiscal  cliff" issues  in the  United States  and a  weakening 
Japanese yen,  the domestic  economy  continued to  grow  in fits  and  starts 
propelled by continued accommodative policies  by the Federal Reserve.  Record 
low interest rates and  purchases of record amounts  of government and  agency 
securities through the Federal Reserve's QE-3 policy provided the liquidity to
drive the  stock  market to  record  levels and  to  continue to  provide  the 
underpinnings for a recovery  in housing prices across  the U.S. While  equity 
prices moved higher during the recent quarter, it was on decidedly less volume
than in the comparable period of 2012.

Albert G. Lowenthal, Chairman and CEO,  said "We are pleased to see  operating 
results improve as a result of our reduced real estate consolidation and legal
costs compared with  the same period  last year.  We have begun  to see  cost 
savings and  increased  efficiencies  from  our  New  York  City  real  estate 
consolidation. Despite  the run  up in  the equity  markets during  the  first 
quarter of 2013, we  continue to see relatively  low trading volumes from  the 
lack of  activity among  both retail  and institutional  investors,  seemingly 
based on a  lack of confidence  in the  strength and duration  of the  current 
recovery.

Higher security valuations during  the fourth quarter of  2012 in both  equity 
and debt markets  drove our assets  under management to  a new all-time  high, 
resulting in  increased  management  fees  during  the  period.  Our  mortgage 
financing business continued its strong performance with increased demand  for 
low cost Federal Housing Administration ("FHA")-insured mortgages. We also saw
some improvement in equities underwriting for the period. However, we continue
to experience  low levels  of activity  in the  middle market  which  produced 
disappointing results in fee-based investment banking revenue for the period.
We  remain  optimistic  about  the  environment  and  believe  that  we   have 
substantially dealt  with the  issues facing  the Company  that largely  arose 
during the financial crisis, which began almost six years ago."

Financial Highlights

  *Commission revenue was $119.6 million for the first quarter of 2013, a
    decrease of 4.8% compared with the first quarter of 2012.

  *Principal transactions revenue increased 25.2% to $15.7 million during the
    first quarter of 2013 compared with the first quarter of 2012.

  *Investment banking revenue was down 8.2% to $18.4 million for the first
    quarter of 2013 compared with $20.1 million during the first quarter of
    2012.

  *Advisory fees were $56.7 million during the first quarter of 2013, an
    increase of 13.3% compared with the first quarter of 2012.

                                                             
                 Business Segment Results (Unaudited)
                                                             
                                        For the 3-Months Ended
('000s)                             3/31/13     3/31/12    % Change
Revenue                                                       
   Private Client                $  143,369  $  144,263     (0.6)
   Asset Management                  20,956     19,044      10.0
   Capital Markets                   65,131     69,329     (6.1)
   Commercial Mortgage Banking        8,066      8,054       0.2
   Corporate/Other                    1,624    (2,476)        *
                                    239,146    238,214       0.4
Income (Loss) Before Income Taxes                             
   Private Client                   17,327     14,962      15.8
   Asset Management                   6,543      4,990      31.1
   Capital Markets                    3,533    (1,655)       *
   Commercial Mortgage Banking        2,878      3,830    (24.9)
   Corporate/Other                 (23,568)   (28,616)      17.6
                                  $    6,713  $  (6,489)        *
                                                      

* Not comparable

Private Client

Private Client reported  revenue of $143.4  million for the  first quarter  of 
2013, 0.6% lower  than the first  quarter of 2012.  Pre-tax income was  $17.3 
million, an  increase  of 15.8%  compared  with  the first  quarter  of  2012, 
primarily due  to decreased  legal  costs of  $3.6  million during  the  first 
quarter of 2013 compared with 2012.

  *Client assets under administration reached record levels of $84.9 billion
    at March 31, 2013, an increase of 9% from March 31, 2012.

  *Financial Advisor headcount was 1,405 at the end of the quarter, down from
    1,435 from the prior year period.

  *Retail commissions were $82.1 million for the quarter, a decrease of 5.8%
    over the prior year quarter.

  *Advisory fee revenue on traditional and alternative managed products was
    $35.9 million for the first quarter of 2013, an increase of 16.3% over the
    prior year quarter (see Asset Management below for further information).

  *Money market fee waivers were $7.2 million during the first quarter of
    2013 versus $6.0 million during the first quarter of 2012.

Asset Management

Asset Management reported revenue  of $21.0 million for  the first quarter  of 
2013, 10.0% higher than  the first quarter of  2012. Pre-tax income was  $6.5 
million, an increase of 31.1%  compared with the first  quarter of 2012, as  a 
result of  increased  fees  earned  on  managed  products  as  well  as  lower 
compensation costs.

  *Advisory fee revenue on traditional and alternative managed products was
    $18.5 million for the first quarter of 2013, an increase of 11.2% over the
    prior year quarter. Asset management fees are calculated based on client
    assets under management ("AUM") at the end of the prior quarter which
    totaled $20.9 billion at December 31, 2012 ($18.6 billion at December 31,
    2011) and are allocated to the Private Client and Asset Management
    Divisions.

  *AUM increased 11.4% to $22.4 billion at March 31, 2013, a record for the
    Company, from $20.1 billion at March 31, 2012, which is the basis for
    advisory fee billings for the second quarter of 2013. The increase in AUM
    was comprised of asset appreciation of $1.6 billion and net new assets of
    $0.7 billion.

Capital Markets

Capital Markets reported  revenue of $65.1  million for the  first quarter  of 
2013, 6.1% lower  than the  first quarter of  2012. Pre-tax  income was  $3.5 
million during the first quarter of 2013 compared with a loss of $1.7  million 
during the first quarter of 2012, which arose primarily from overlapping  rent 
expense and accelerated amortization of  intangible assets during the  earlier 
period.

  *Institutional equities commissions were $25.2 million for the first
    quarter of 2013, a decrease of 12.3% compared with the prior period.

  *Advisory fees from investment banking activities decreased 14.5% to $5.8
    million in the first quarter of 2013.

  *Equity underwriting fees declined $1.8 million to $8.6 million for the
    first quarter of 2013. While the Company participated in more issues (24
    in the first quarter of 2013 versus 19 in the first quarter of 2012) its
    revenue declined.

  *Revenue from Taxable Fixed Income decreased 2.2% to $20.8 million for the
    2013 first quarter.

  *Public Finance and Municipal Trading revenue was up 65.9% to $5.5 million
    for the first quarter of 2013.

Commercial Mortgage Banking

Commercial Mortgage Banking  reported revenue  of $8.1 million  for the  first 
quarter of 2013, 0.2% higher than  the first quarter of 2012. Pre-tax  income 
was $2.9 million,  a decrease  of $952,000 or  24.9% compared  with the  first 
quarter of 2012, primarily due to increased compensation costs associated with
a higher headcount in 2013 compared to the prior year.

  *Loan origination fees for the period were $1.6 million as the Company
    originated 20 commercial loans with principal loan balances of $151.0
    million.

  *Net servicing revenue for the period was $1.2 million compared with
    $927,000 for the comparable period in 2012.

  *Principal loan balances related to servicing activities totaled $3.5
    billion during the 2013 period, up 25% from the first quarter of 2012.

Compensation and Benefit Expenses

Compensation  and  benefits  (including  salaries,  production  and  incentive 
compensation,  share-based  compensation,  deferred  compensation,  and  other 
benefit-related items)  totaled  $159.2 million  during  the 2013  period,  an 
increase of 0.4% over the first quarter of 2012. Compensation as a percentage
of revenue was  66.7% for both  the first  quarter of 2013  and 2012.  Higher 
healthcare costs were largely responsible for the increase.

Non-Compensation Expenses

Non-compensation expenses decreased  to $73.2 million  during the 2013  period 
from $86.1  million during  the same  period last  year, a  decrease of  $12.9 
million or  14.9%.  A significant  driver  for  the decrease  was  related  to 
additional costs of  $6.3 million  incurred in the  first quarter  of 2012  in 
connection with the Company's New York  City real estate consolidation in  the 
form of  overlapping  rent  expense, accelerated  amortization  of  fixed  and 
intangible assets, and relocation costs. Also, contributing substantially  to 
the decrease was a $5 million reduction  in legal costs during the 2013  first 
quarter.

Provision for Income Taxes

The effective income tax rate for the first quarter of 2013 was 42.0% compared
with 40.2% for the prior year first quarter.

Balance Sheet and Liquidity

  *At March 31, 2013, total equity was $508.9 million  compared with $505.0
    million  at December 31, 2012.

  *At March 31, 2013, book value per share was $37.07 (compared with $36.80
    at December 31, 2012) and tangible book value per share was $24.61
    (compared with $24.34 at December 31, 2012).

  *The Company's level 3 assets were $85.6 million at March 31, 2013
    (compared with $85.4 million at December 31, 2012).

Dividend Announcement

  *The Company today announced a quarterly dividend in the amount of $0.11
    per share, payable on May 24, 2013 to holders of Class A non-voting and
    Class B voting common stock of record on May 10, 2013.

                                                               
                          Oppenheimer Holdings Inc.
             Quarterly Consolidated Income Statement (unaudited)
('000s, except EPS)                                                     
                                                  For the 3-Months Ended
                                              3/31/13   3/31/12   % Change
REVENUE                                                                 
       Commissions                            $119,580  $125,634     (4.8)
       Principal transactions, net              15,717    12,555      25.2
       Interest                                 12,371    13,393     (7.6)
       Investment banking                       18,448    20,087     (8.2)
       Advisory fees                            56,720    50,077      13.3
       Other                                    16,310    16,468     (1.0)
                                               239,146   238,214       0.4
                                                                       
EXPENSES                                                                
       Compensation and related expenses       159,209   158,651       0.4
       Clearing and exchange fees                6,042     6,031       0.2
       Communications and technology            15,864    16,138     (1.7)
       Occupancy and equipment costs            17,565    24,344    (27.8)
       Interest                                  6,862     8,792    (22.0)
       Other                                    26,891    30,747    (12.5)
                                               232,433   244,703     (5.0)
                                                                       
Income (loss) before income taxes                 6,713   (6,489)       *
Income tax provision (benefit)                    2,820   (2,606)       *
Net income (loss) for the period                  3,893   (3,883)       *
Less net income attributable to                     230       774
non-controlling interest, net of tax                                   (70.3)
Net income (loss) attributable to Oppenheimer    $3,663  ($4,657)
Holdings Inc.                                                              *
                                                                       
Earnings (loss) per share attributable to Oppenheimer     
Holdings Inc.                                                               
       Basic                                     $0.27   ($0.34)       *
       Diluted                                   $0.26   ($0.34)       *
                                                                       
Weighted Average Number of Common Shares               
Outstanding                                                                
       Basic                                    13,608    13,597       0.1
       Diluted                                  14,029    13,597       3.2


* Not comparable

Company Information

Oppenheimer Holdings Inc.,  through its operating  subsidiaries, is a  leading 
middle market investment bank and  full service broker-dealer that provides  a 
wide range  of  financial  services  including  retail  securities  brokerage, 
institutional sales and trading, investment banking (both corporate and public
finance),  research,   market-making,   trust,  investment   management,   and 
commercial  mortgage.  With  roots   tracing  back  to   1881,  the  firm   is 
headquartered in  New York  and has  94 offices  in 26  states and  6  foreign 
jurisdictions.

Forward-Looking Statements

This press release includes  certain "forward-looking statements" relating  to 
anticipated future performance. For  a discussion of  the factors that  could 
cause future performance to be  different than anticipated, reference is  made 
to Factors Affecting "Forward-Looking Statements"  and Part 1A - Risk  Factors 
in Oppenheimer's Annual Report  on Form 10-K for  the year ended December  31, 
2012.







SOURCE Oppenheimer Holdings Inc.

Contact:

Jeffrey Alfano
(212) 668-8000