The Jefferies Group posted a slight rise in third-quarter profit on Thursday, as the securities firm had gains in its trading and advisory businesses from the same time a year ago.
The firm earned $70.2 million for common shareholders for the quarter, up from $68.3 million during the same time a year ago. Net revenue leaped 39 percent, to $730.6 million.
Compared with the year-ago period, Jefferies' results show marked improvement, with many of its core businesses reporting sizable jumps in revenue. The firm's core debt-trading business reported a more than sevenfold rise in revenue, to $265.7 million, while its equities trading business rose 65 percent, to $210 million. And its advisory operations rose 23 percent, to $133.2 million.
That may herald some good news for other major banks, which are set to report their own results in the coming weeks. Many of Wall Street's biggest houses have been hampered by middling performance in their fixed-income tradin g divisions, which have been hurt by low interest rates and new regulatory requirements.
The picture hasn't completely brightened, however. Jefferies' fixed-income trading division still reported a 9 percent decline from the firm's second quarter. And its capital markets business, which advises companies on offerings of stock and debt, reported declines from both the year-ago period and the second quarter.
Over the last year, Jefferies has survived a few major shocks, notably a steep fall in its stock price last November as investors worried about its holdings of European government debt in the wake of MF Global‘s collapse. Yet the firm climbed back as it demonstrated a relative ease in selling off those bonds.
“Despite a turbulent and often treacherous environment, we have just finished the best nine-month period in our firm's history,†Richard Handler, Jefferies' chairman and chief executive, said in a statement. “Our equity base of $3.7 billion h as never been more robust, and our balance sheet and liquidity have never been stronger.â€
Shares in Jefferies fell 1 percent in premarket trading, to $15.50. They have risen nearly 6 percent over the last 12 months.
