July 3, 2019 / 11:19 AM / 18 days ago

Jefferies Group quarterly profit rises 12% on strength in trading

(Reuters) - Jefferies Group LLC on Wednesday reported a 12% rise in second-quarter profit, driven by strength in its bond and equity trading businesses.

Total sales and trading revenue rose 29% to $379.3 million and accounted for 42% of the total net revenue.

“In Equities, we are realizing market share gains globally driven by our innovative electronic trading capabilities,” company executives said in a statement.

“(We) posted solid results in our Fixed Income business on the back of strength in our credit businesses.”

However, total investment banking revenue fell 12% to $447.7 million as the company was yet to fully recover from the U.S. government shutdown in December.

“Investment Banking advisory revenues were held back by the lag effect resulting from capital markets conditions in December and the U.S. government shutdown in December and January,” the company said.

Net earnings attributable to the financial adviser rose to $109.9 million in the quarter ended May 31 from $98 million a year earlier.

Jefferies Group LLC is the main unit of Jefferies Financial Group (JEF.N), and being the first big financial company to report earnings, its results are widely seen as an indicator of the financial performance of big Wall Street banks expected to report in mid-July.

Reporting by Bharath Manjesh and Akanksha Rana in Bengaluru; Editing by Arun Koyyur

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