INVESTMENT bank Jefferies Financial Group posted a 52.5 per cent decline in fourth-quarter profit yesterday, hit by lower underwriting fees and volatile markets that dented income from its trading desks.

Still, investment banking revenue saw their second-best year and was substantially above 2019 levels, chief executive officer Richard Handler and president Brian Friedman said.

The New York-based financial institution's results are often viewed as a prelude to earnings at Wall Street titans such as JP Morgan, Goldman Sachs and Morgan Stanley, since the bank reports ahead of its rivals.

Investment banks are buckling under pressure from a dearth of deals as companies refrain from M&A activity due to higher borrowing costs and geopolitical uncertainties.

Jefferies' total net revenue was down 18 per cent at $1.44bn.

Reuters

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