Key facts
- Jefferies Financial's third-quarter profit increased due to higher fees from deal advisory and equity underwriting, plus record equities trading.
- Investment banking revenue rose 17% to $1.33 billion, supported by a strong advisory business.
- Equity underwriting revenue surged 69%, driven by market share gains and increased sector activity.
- Capital markets revenue, including trading desks, jumped 11% to $802 million, fueled by record equities trading.
- Asset management fees and investment return revenue decreased to $34 million from $84 million.
- Jefferies climbed to sixth place in global investment banking revenue rankings year-to-date, up from eighth.
Jefferies Financial reported an increase in third-quarter profit on Monday, benefiting from higher fees generated by advising on deals and underwriting stock sales, alongside record performance in its equities trading business. The firm's results are closely watched as an early indicator of quarterly investment banking trends before larger U.S. banks release their earnings.
Global dealmaking has surpassed $4 trillion this year, with companies proceeding with transactions despite market volatility and a more favorable regulatory environment. Jefferies' investment banking revenue climbed 17% to $1.33 billion, driven by a record quarter for its advisory services. Equity underwriting revenue surged 69% due to market share gains and increased activity across various sectors.
Revenue from the capital markets division, which includes trading desks, rose 11% to $802 million, propelled by record equities trading performance. However, asset management fees and investment return revenue fell to $34 million from $84 million a year prior, attributed to weaker performance in several fund strategies. According to Dealogic data, Jefferies has moved up to sixth place in global investment banking revenue rankings year-to-date, from eighth place in the same period last year.