Jefferies reports record investment-banking revenue but weaker fixed-income trading

Jefferies ($JEF) reported quarterly net revenue of $2.22 billion and earnings attributable to common shareholders of approximately $261 million. Diluted earnings per voting common share were $1.08. Investment-banking revenue increased 17% to $1.33 billion, with advisory activity and equity underwriting driving the expansion. Equities revenue rose 29% to $626 million, extending the firm’s gains in trading and prime services.

The performance was uneven across businesses. Fixed-income revenue declined 26% to $176 million, while asset-management fees and investment returns were weaker. The board replenished the share-repurchase authorization to $250 million after $70 million of quarterly purchases. Stronger transaction activity supports earnings, but management’s upbeat pipeline commentary remains an expectation, not booked revenue. The reported return on adjusted tangible equity was 13.5%, a non-GAAP measure.

Sources:

• Jefferies release via Business Wire
• Timestamped issuer-release reproduction