Segment information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment information

Segment information

The Company has determined its reportable segments based on the Company's method of internal reporting, which disaggregates its retail business by branch and its proprietary and investment banking businesses by product. The Company evaluates the performance of its segments and allocates resources to them based upon profitability.

The Company's reportable segments are:

Private Client — includes commissions and a proportionate amount of fee income earned on assets under management ("AUM"), net interest earnings on client margin loans and cash balances, fees from money market funds, custodian fees, net contributions from stock loan activities and financing activities, and direct expenses associated with this segment.

Asset Management — includes a proportionate amount of fee income earned on AUM from investment management services of Oppenheimer Asset Management Inc. Oppenheimer's asset management divisions employ various programs to manage client assets either in individual accounts or in funds, and includes direct expenses associated with this segment; and

Capital Markets — includes investment banking, institutional equities sales, trading, and research, taxable fixed income sales, trading, and research, public finance and municipal trading, as well as the Company's operations in the United Kingdom, Hong Kong and Israel, and direct expenses associated with this segment.

The Company does not allocate costs associated with certain infrastructure support groups that are centrally managed for its reportable segments. These areas include, but are not limited to, legal, compliance, operations, accounting, and internal audit.

Costs associated with these groups are separately reported in a Corporate/Other category and primarily include compensation and benefits.

The table below presents information about the reported revenue and pre-tax income (loss) of the Company for the three and six months ended June 30, 2022 and 2021. Asset information by reportable segment is not reported since the Company does not produce such information for internal use by the chief operating decision maker.

(Expressed in thousands)
	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
Revenue
Private client (1)	$	144,471	$	166,863	$	295,318	$	330,886
Asset management (1)	24,315		25,544		51,432		49,774
Capital markets	71,274		147,945		156,325		331,544
Corporate/Other	(2,838)		(59)		175		1,371
Total	$	237,222	$	340,293	$	503,250	$	713,575
Pre-Tax Income (Loss)
Private client (1)	$	38,800	$	21,673	$	62,946	$	45,936
Asset management (1)	8,120		8,638		17,594		16,191
Capital markets	(17,935)		39,373		(16,769)		89,364
Corporate/Other	(35,154)		(26,516)		(55,727)		(56,196)
Total	$	(6,169)	$	43,168	$	8,044	$	95,295

(1)Clients investing in the OAM advisory program are charged fees based on the value of AUM.

Advisory fees are allocated 10.0% to the Asset Management and 90.0% to the Private Client segments.

Revenue, classified by the major geographic areas in which it was earned, for the three and six months ended June 30, 2022 and 2021 was:

(Expressed in thousands)
	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
Americas	$	225,500	$	326,485	$	477,410	$	683,192
Europe/Middle East	10,474		12,501		22,451		27,911
Asia	1,248		1,307		3,389		2,472
Total	$	237,222	$	340,293	$	503,250	$	713,575