Profits dip at Jefferies as uncertainty weighs

City A.M. Reporter
INVESTMENT bank Jefferies Group, which is now part of Leucadia National, reported a 34 per cent drop in quarterly profit yesterday as uncertainty about the US Federal Reserve’s stimulus programme hurt fixed-income trading.

Net income fell to $42m from $63.5m, while revenue from fixed-income trading fell 27 per cent to $213.3m from a year earlier.

Revenue from investment banking also fell seven per cent to $277.1m as the M&A market is yet to fully recover from the European crisis.

Chief executive Richard Handler described the bond trading environment as tepid and cautious.

Jefferies, which kicks off the reporting season for investment banks, is often viewed as an indicator of performance at Wall Street banks such as Goldman Sachs and Morgan Stanley.