Bloomberg News reports that trading revenue fell 5% in the three months ended May 31, without counting mark-to-market gains on equity block holdings, the company said today in a statement. Even with the trading decline, net income advanced 54% to $61.8m as revenue from investment banking climbed.
Wall Street’s biggest firms have been warning that the trading slump that pressured profits early this year would continue into the second quarter. Citigroup Chief Financial Officer John Gerspach said last month that second-quarter trading revenue could be down 20% to 25% in a market he described as 'becalmed'.
'During the second quarter, clients have been cautious and generally less active in trading due to the unsettled markets, but we believe Jefferies’ results reflect gains in market share', Richard Handler, the chief executive officer of Jefferies and its parent company, said in the statement.
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