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
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.

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