Oppenheimer and others take 2Q tumble

A host of financial services companies reported their earnings today, with only one firm boasting black ink on its ledger.
JUL 30, 2008
By  Bloomberg
A host of financial services companies reported their earnings today, with only one firm boasting black ink on its ledger. Second-quarter earnings at Toronto-based Oppenheimer Holdings Inc. tumbled 90% on weakness in the credit markets and its acquisition of Toronto-based CIBC World Markets’ U.S. capital markets business. The New York-based division reported that net income for the quarter ended June 30 fell to $1.6 million, or 12 cents per share, from $15.8 million, or $1.16 per share, during the year-ago period. Fiserv Inc. reported an 8% decrease in second-quarter earnings despite an increase in processing and sales revenue. The Brookfield, Wis.-based provider of information management systems posted net income of $99 million, or 60 cents per share, compared with $1.08 million, or 64 cents per share, during the year-ago period. Lazard Ltd. posted a 5% increase in second-quarter profits on higher advisory and asset management fees. The Hamilton, Bermuda-based investment bank recorded second quarter net income of $64.6 million, or 54 cents per share, up from $61.5 million, or 53 cents per share, in the year-ago period. Assets under management totaled $134.1 billion at the end of the second quarter, representing a nominal decrease from $135.4 billion in assets during the year-ago period. Moody's Corp. posted a 48% decrease in earnings as demand for ratings services declined due to weak credit markets. The New York-based credit-rating agency recorded net income of $135.2 million, or 54 cents per share, up from $261.9 million, or 95 cents per share, during the year-ago quarter. MetLife Inc.’s second-quarter profits took a dive to $915 million, or $1.26 per share, a 19% slide from $1.13 billion, or $1.48 per share, in the comparable period last year. Also, the New York based insurer reported net realized investment losses of $233 million, 75% of which was related to the credit crunch. MetLife trimmed its predicted full-year earnings to a range of $5.70 to $5.90 per share, down from $5.90 to $6.20 per share. Genworth Financial Inc. of Richmond, Va. recorded a net loss of $109 million, or 25 cents per diluted share. That’s down from a net income of $379 million, or 84 cents, in the second quarter of 2007.

Latest News

Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says
Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says

A new analysis finds long-running fiscal woes coupled with impacts from the One Big Beautiful Bill Act stand to erode the major pillar for retirement income planning.

SEC bars New Jersey advisor after $9.9M fraud against Gold Star families
SEC bars New Jersey advisor after $9.9M fraud against Gold Star families

Caz Craffy, whom the Department of Justice hit with a 12-year prison term last year for defrauding grieving military families, has been officially exiled from the securities agency.

Navigating the great wealth transfer: Are advisors ready for both waves?
Navigating the great wealth transfer: Are advisors ready for both waves?

After years or decades spent building deep relationships with clients, experienced advisors' attention and intention must turn toward their spouses, children, and future generations.

UBS Financial loses another investor lawsuit involving Tesla stock
UBS Financial loses another investor lawsuit involving Tesla stock

The customer’s UBS financial advisor allegedly mishandled an options strategy called a collar, according to the client’s attorney.

Trump's one big beautiful bill reshapes charitable giving for donors and advisors
Trump's one big beautiful bill reshapes charitable giving for donors and advisors

An expansion to a 2017 TCJA provision, a permanent increase to the standard deduction, and additional incentives for non-itemizers add new twists to the donate-or-wait decision.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.