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Jefferies Profit Drops on Pullback in Deals, Capital Markets


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  Jefferies Financial Group Inc.'s fiscal first-quarter earnings declined amid a drop in investment-banking and capital-markets revenue, with activity hurt by uncertainty around US policy and geopolitics.

Jefferies Financial Group Inc. reported a significant drop in profit for the fiscal third quarter ending August 31, primarily due to a slowdown in deal-making and capital markets activities. The investment bank's net income fell to $49.8 million, or 22 cents per share, from $148.5 million, or 58 cents per share, in the same quarter the previous year. This decline was attributed to a 23% decrease in investment banking revenue, which was impacted by a sluggish mergers and acquisitions market and reduced activity in equity and debt underwriting. Additionally, Jefferies experienced a 17% drop in its capital markets revenue. Despite these challenges, the firm's asset management arm saw a slight increase in revenue, although this was not enough to offset the overall downturn in earnings.

Read the Full Bloomberg Article at:
[ https://www.msn.com/en-us/money/other/jefferies-profit-drops-on-pullback-in-deals-capital-markets/ar-AA1BIXpD ]

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