Jefferies Group, the investment bank whose trading results often foreshadow performance at bigger Wall Street firms, said fourth-quarter profit quadrupled as revenue from trading stocks and bonds more than doubled.
Bloomberg News reports that net income jumped to $87.1m in the three months ended November 30, the company said Tuesday in a statement. Trading revenue climbed to $325.4m as fixed income and equities surged from a year earlier, according to Jefferies, which is owned by Leucadia National.
“Our strong finish to the year, combined with the continued positive momentum in all of our businesses, positions us well for 2017,” Chief Executive Officer Richard Handler and Brian Friedman, chairman of the executive committee, said in the statement.
Investors watch the company’s trading results to gauge how business is faring at bigger investment banks, which typically finish their quarters a month later. While Jefferies’s performance reinforces what executives at Bank of America and JPMorgan have said about their fourth-quarter trading gains so far, Morgan Stanley’s president said last week that some banks are exhibiting “over-exuberance” about a lasting revenue rebound. Trading at the world’s biggest banks tumbled in the first quarter, and most firms posted declines in the last quarter of 2015.
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