Higher transaction volumes amid more volatile trading in the fourth quarter of 2020 meant that private client revenues increased sharply from a year earlier.

US-listed investment bank and asset manager Oppenheimer Holdings has reported a 23.8 per cent year-on-year gain to private client revenue for the fourth quarter of $217.7 million. 

The revenue gain was driven by higher transactions, particularly in listed options, because clients were encouraged by increased volatility and a particularly strong equities market, which also contributed to record high incentive fees, the firm said in a statement last Friday.

The private clients arm logged pre-tax income of $39.4 million in Q4, producing a pre-tax profit margin of 18.1 per cent. Financial advisor headcount fell because of increased retirements to 1,002 people at the end of Q4 from 1,032 at the end of fourth quarter of 2019.

Within asset management, revenues rose to $72.9 million from $35.2 million a year ago. In the capital markets business, revenues were $131.7 million, up from $84 million. Across the entire firm, Q4 revenue stood at $422.9 million, up from $295.9 million; net income rose to $81.9 million from $25 million a year before.

Advisory fees rose by 60.5 per cent due to higher assets under management at September 30, 2020 compared with September 30, 2019 as well as higher incentive fees from alternative investments, Oppenheimer Holdings said.