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UPDATE 3-Jefferies' profit boosted by strong investment banking revenue
June 20, 2017 / 11:20 AM / 6 months ago

UPDATE 3-Jefferies' profit boosted by strong investment banking revenue

* 2nd-qtr investment banking revenue up 39 pct

* Equities, fixed income revenue slips

* Total net revenue up 8.3 pct (Adds Breakingviews link, Leucadia share price)

June 20 (Reuters) - U.S. investment bank Jefferies Group LLC reported a 29.4 percent increase in quarterly profit on Tuesday, boosted by higher fees from advising on mergers and acquisitions and underwriting debt and equity offerings.

Revenue from its investment banking business, which includes underwriting and advisory services, jumped 39 percent to $351.9 million in the second quarter ended May 31.

New York-based Jefferies, a unit of Leucadia National Corp , traditionally kicks off the earnings reporting season for investment banks, and its results are viewed as an indicator of how big Wall Street banks are performing.

Jefferies’ total equities and fixed income revenue dipped 6.9 percent to $430.1 million, as revenue from fixed-income trading fell by more than a third amid lesser market volatility throughout much of the quarter.

Strong trading revenue had boosted profits at large U.S. banks in recent quarters even amid low interest rates as investors changed their positions around major economic events such as Britain’s vote to leave the European Union and the U.S. presidential election.

But banks including JPMorgan Chase & Co and Bank of America Corp have already warned that trading revenue in the second quarter of 2017 would be lower than year-ago levels, hurt by lesser volatility and weaker client activity.

Net income attributable to Jefferies Group rose to $69.8 million from $53.9 million a year earlier.

Net revenue climbed 8.3 percent to $779.3 million.

Shares of Leucadia were down 2.8 percent at $25.49 in midday trading on Tuesday.

Reporting by Sweta Singh in Bengaluru; Editing by Sai Sachin Ravikumar

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