Jefferies' profit boosted by strong investment banking revenue

(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 LUK.N, 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 JPM.N and Bank of America Corp BAC.N 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