Sept 28 (Reuters) – Jefferies Financial beat third-quarter profit estimates on Monday, as higher fees from advising on deals and underwriting stock sales were complemented by a record haul in equities trading business.
Its results are closely watched on Wall Street for an early glimpse into quarterly investment banking trends, before large US banks report earnings in the coming weeks.
Here are some other details:
• Global dealmaking has crossed $4 trillion this year as corporate boardrooms look past market volatility, taking advantage of an easier regulatory backdrop to scale their businesses.
• Jefferies’ investment banking revenue jumped 17% to $1.33 billion, underpinned by a record quarter for its advisory business.
• Equity underwriting revenue for the New York-based investment bank surged 69% in the quarter, driven by market share gains and increased activity across sectors.
• “We are very optimistic about the balance of 2026 and our momentum heading into 2027, supported by the breadth and strength of our current backlog and new business activity,” CEO Richard Handler and President Brian Friedman said.
• Jefferies shares fell about 3% in extended trading. The stock had fallen roughly 24% this year through last close.
• Profit attributable to Jefferies shareholders was $260.6 million, or $1.08 per share, in the three months ended August 31. Wall Street had expected a profit of $1 per share, according to estimates compiled by LSEG.
• Revenue from capital markets business, which houses its trading desks, jumped 11% to $802 million, driven by record equities trading performance.
• Asset management fees and investment return revenue fell to $34 million from $84 million a year earlier, reflecting weaker performance across several fund strategies.
• Jefferies has climbed to sixth place in global investment banking revenue rankings so far this year, from eighth in the corresponding year-ago period, according to Dealogic data.
(Reporting by Arasu Kannagi Basil in Bengaluru and Saeed Azhar in New York; Editing by Shilpi Majumdar)
