Jefferies third-quarter profit misses expectations as M&A sputters By Reuters

<p> <br />
</p>
<div>
<div>
<img decoding="async" alt="Jefferies third-quarter profit misses expectations as M&amp;A sputters" id="carouselImage" src="https://i-invdn-com.investing.com/trkd-images/LYNXMPEJ8Q0YV_L.jpg" style="visibility:hidden" /><br />
<span>© Reuters. FILE PHOTO: People walk outside of Jefferies Financial Group offices in Manhattan, New York, U.S., December 8, 2021. REUTERS/Eduardo Munoz/File Photo</span><br />
<i class="imgGrad"/>
</div>
<p>By Niket Nishant and Lananh Nguyen</p>
<p>(Reuters) -Jefferies Financial Group reported a smaller-than-expected third-quarter profit on Wednesday as lingering economic uncertainty kept dealmaking in check, but the firm said it was hiring more managing directors for next year.</p>
<p>It forecast a more “normal” investment banking environment in 2024. The biggest hit to earnings came from the asset management unit, where revenue plummeted 97% from last year, which had included results from units Jefferies has since shed.</p>
<p>But market conditions are beginning to improve, the bank said, bolstering the view that deals are starting to pick up pace after the Federal Reserve signaled it is nearing the end of its tightening cycle.</p>
<p>Investment banking revenue was $644.6 million, about 2% lower than last year but nearly 28% higher than the prior quarter.</p>
<p>“The markets are thawing out and beginning to warm a bit,” Jefferies President Brian Friedman said in an interview. </p>
<p>“The market for the services we provide has pretty good demand across the board – it needs to be translated into transactions,” he said, citing recent initial public offerings and a pickup in merger discussions.</p>
<p>Jefferies said it expects around 360 managing directors in its investment banking franchise at the beginning of 2024, up from the 299 that it started this year with.</p>
<p>“As long as I’ve been involved in running investment banking firms, the opportunity to hire and grow is best in downturns,” Friedman said. </p>
<p>“One needs to have the fortitude and the commitment to make the moves that are available in more challenging moments.” </p>
<p>The company has opened offices in Israel and Brazil and beefed up investment banking presence in Dubai and India, Friedman said. It also plans to expand into Canada before the end of the year.</p>
<p>The bank’s results are often viewed as a prelude to earnings at Wall Street titans such as JPMorgan Chase (NYSE:), <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Goldman Sachs Group </span></span> (NYSE:) and Morgan Stanley.</p>
<p>Jefferies’ profit slumped 74% to $51.4 million, or 22 cents per share, for the three months ended Aug. 31, compared to analysts’ average estimate of 33 cents per share, according to LSEG data.</p>
<p>Here is a look at the new investment banking MDs in financial year 2023: </p>
<p>Role Executive Previous </p>
<p>organizati </p>
<p>on </p>
<p>Executive John Miller Barclays </p>
<p>Co-Chair of </p>
<p>Global </p>
<p>Investment </p>
<p>Banking and </p>
<p>capital </p>
<p>markets </p>
<p>Chairman of Ron Eliasek Bank of </p>
<p>TMT Banking America </p>
<p>MD, tech Jon Credit </p>
<p>team Gegenheimer Suisse </p>
<p>Global Head Stas JPMorgan </p>
<p>of Byhovsky </p>
<p>Healthcare </p>
<p>IT Banking </p>
<p>Vice Rich Siegel Barclays </p>
<p>Chairman, </p>
<p>Industrials </p>
<p>MD, Sam Jackson Barclays </p>
<p>Industrials </p>
<p>Vice Mark Hudson (NYSE:) Barclays </p>
<p>Chairman, </p>
<p>overseeing </p>
<p>Industrials </p>
<p>M&amp;A </p>
<p>EMEA Head of Gavriel Barclays </p>
<p>Consumer Lambert </p>
<p>Retail and </p>
<p>Global </p>
<p>Co-Head of </p>
<p>Retail </p>
<p>Energy David Guggenheim </p>
<p>Transition Dolezal, </p>
<p>Banking team Kyle Baker </p>
<p>and Jeff </p>
<p>Tang </p>
<p>Financial Evan Barclays </p>
<p>Services Rothenberg, </p>
<p>Group Kurt </p>
<p>banking Kohlmeyer </p>
<p>capabilities and Mike </p>
<p>Guinge </p>
<p>International expansion: </p>
<p>Role Previous </p>
<p>Region Executive organization </p>
<p>Europe &amp; Head of Igor De UBS </p>
<p>UK France Limur </p>
<p>Investment </p>
<p>Banking </p>
<p>Coverage </p>
<p>Europe &amp; Vice Sam Dean Barclays </p>
<p>UK Chairman of </p>
<p>Investment </p>
<p>Banking </p>
<p>Europe &amp; Co-Heads, Glenn Rothschild </p>
<p>UK EMEA Cronin and Lazard (NYSE:), </p>
<p>Restructuri and David respectively </p>
<p>ng group Burlison </p>
<p>Europe &amp; Country Andrea Credit Suisse </p>
<p>UK Head, Italy Donzelli </p>
<p>APAC Head of SEA Amrit Credit Suisse </p>
<p>M&amp;A Kolluru </p>
<p>APAC Vice Rizal Credit Suisse </p>
<p>Chairman, Gozali </p>
<p>SEA and </p>
<p>Head of </p>
<p>Indonesia </p>
<p>APAC Co-Head of Rehan Credit Suisse </p>
<p>Asia IB Anwer </p>
<p>APAC Head of Felicity Credit Suisse </p>
<p>Asia ECM Chan </p>
<p>Syndicate </p>
<p>and SEA ECM </p>
<p>Origination </p>
<p>APAC Private Dennis HI </p>
<p>capital Kwan Transformatio </p>
<p>advisory nal Fund </p>
<p>Australi Vice Dominic Macquarie </p>
<p>a Chairman Meagher </p>
<p>Industrials </p>
<p>Australi Vice Mark Morgan </p>
<p>a Chairman of Burmeiste Stanley </p>
<p>Australia r </p>
<p>Capital </p>
<p>Markets </p>
<p>Australi Head of Julian Gresham </p>
<p>a Infrastruct Babich </p>
<p>ure Banking </p>
<p>Australi Lead, ECM Mike Macquarie </p>
<p>a Syndicate Johnson </p>
<p>LATAM Lead, Alejandro JPMorgan </p>
<p>Brazil Guevara </p>
<p>Investment </p>
<p>Banking </p>
</div>
<p><br />
<br /><a href="https://www.investing.com/news/stock-market-news/jefferies-thirdquarter-profit-tanks-on-ma-slowdown-3184643">Source link </a></p><p>The post <a href="https://forextraderhub.com/jefferies-third-quarter-profit-misses-expectations-as-ma-sputters-by-reuters.html">Jefferies third-quarter profit misses expectations as M&A sputters By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>