Jefferies profit jumps as investment banking revenue grows
(Reuters) - Investment bank Jefferies Group LLC, now part of Leucadia National Corp (LUK.N), reported a 68 percent jump in quarterly profit as investment banking revenue almost doubled.
Net income attributable to Jefferies rose to $120 million from $71.6 million a year earlier, while revenue from investment banking rose about 48 percent to $417 million.
Net revenue rose to $935.7 million from $768.9 million.
The bank's investment banking business benefited from a strong stock market and an increase in leveraged finance, Chief Executive Richard Handler said on Tuesday.
The year has seen some blockbuster deals, with merger and acquisition activity across the globe rising to $1.55 trillion up to the end of the third quarter.
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 Group Inc (GS.N) and Morgan Stanley (MS.N).
Leucadia, which models itself on Warren Buffett's Berkshire Hathaway Inc (BRKa.N) and owns companies ranging from real estate to mining, paid $2.76 billion in stock for the 71 percent of Jefferies it did not already own in November last year.
Leucadia shares were up about 0.5 percent at $27.58 in early trading on the New York Stock Exchange.
(Reporting by Tanya Agrawal in Bangalore; Editing by Joyjeet Das)