The institute’s net income fell 59 percent year-on-year to $133.6 million. Jefferies stock is down about 8 percent so far in 2023.
(Photo: Reuters)
new York US investment bank Jefferies’ net income fell more than half as rising trading earnings failed to offset a slump in investment banking. The Jefferies Group results are considered a preview of the earnings season in the US banking sector.
Revenue in the investment segment fell 42 percent to $568 million, the New York bank said on Tuesday. Analysts had expected $ 616.5 million in a survey. Sales & Trading revenue increased 33 percent to $639.4 million.
The bank reported a sharp drop in M&A (mergers and acquisitions) activity and continued slack in the IPO and leveraged finance markets. From the Jefferies managers’ point of view, there is no telling when the capital markets will return to “some kind of normalcy”.
Net income fell 59 percent year over year to $133.6 million. Jefferies stock is down about 8 percent so far in 2023.
Expected quarterly figures from the big banks: income from investment banking collapses
Meanwhile, the fixed-income securities business thrived in the face of rising interest rates. Meanwhile, fixed income income rose 63% to $330.7 million on rising interest rates. Equity trading revenue grew 11% to $308.7 million.
Jefferies’ results give a first indication of how Wall Street’s largest banks will fare when they release their results for the first three months of 2023. Investment banking revenues have slumped over the past year as market turmoil in 2022 slowed acquisitions and securities issuance.
JPMorgan Chase & Co. and Citigroup Inc. report first quarter results on April 14th, Goldman Sachs on April 18th. In Germany, Deutsche Bank AG will report on April 27th and Commerzbank AG on May 17th.
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