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Oppenheimer turns 2Q profit as costs fall

The Associated Press, The Associated Press

NEW YORK (AP) -- Oppenheimer Holdings returned to a profit in the second quarter as compensation and other costs fell. The results sent the company's shares up 7 percent Friday.

The New York fund manager and investment bank reported net income of $2.4 million, or 18 cents per share, in the three months through June. In the same quarter of last year, the company reported a loss of $309,000, or 2 cents per share.

Employee pay and similar expenses dropped 6 percent to $150.9 million. A variety of other costs for equipment, interest payments and technology also dropped.

Revenue in the second quarter fell 5 percent to $233 million. The biggest hit came from a 26 percent decline in investment banking revenue.

Albert Lowenthal, the company's chairman and CEO, pointed to a host of problems for investors. The European debt crisis and slower growth in China as well as in the U.S. act as a drag on Oppenheimer's revenue, he said.

Total assets under management were $81.8 billion as of June 30, up from $73.9 billion the year before.

Last month, Oppenheimer Funds agreed to pay more than $35 million to settle charges from the Securities and Exchange Commission that it misled investors who invested in two of its bond funds.

Shares of Oppenheimer Holdings Inc. rose 97 cents to end the day at $14.54. The stock is down 9.7 percent so far this year.