Jefferies reported record revenues for the third quarter and said its dealmaking backlog for the fourth quarter had also reached new heights, in the first results of the season from Wall Street.
Total revenues for the quarter hit a record $1.38bn, up 78 per cent from the $777m reported in the same period a year earlier.
The New York-headquartered firm’s investment banking arm, which accounts for the majority of the business, also brought in the lion’s share of revenue for the period ending 31 August, doubling from a year earlier to $1.18bn – another all-time high.
Earnings for the quarter rose to $1.50 a share from $1.30 in the previous quarter, and as a result, the firm declared another quarterly cash dividend equal to $0.25 per common share – in line with the previous quarter’s dividend.
A “relentless client focus” was to thank for the record results, according to Chief Executive Officer Rich Handler and President Brian Friedman’s statement. “Our market position has reached a new level, particularly in investment banking.”
Looking ahead, the pair were confident in Jefferies’ outlook, and said: “Net revenues in investment banking for the first nine months of the year were $3.25bn and our backlog for the fourth quarter is at a new record level.”
The results are a continuation of the record-breaking trend set in the second quarter, when the firm said its revenue had jumped 56 per cent compared to a year ago, rising to $1.6bn, and jacked up its dividend.
So far this year, Jefferies is the ninth biggest recipient of US investment banking fees, according to Refinitiv data.
But it’s a tough act for the rest of its Wall Street peers to follow when the majority report their quarterly results next month, as so far this year its 64 per cent rate of growth is ahead of its larger rivals.