Jefferies’ Q2 results have seen the investment banking and capital markets firm’s reported revenue hit US$1.66 billion, a 59.6% increase against the same period last year, boosted by strong underwriting revenues, particularly in debt.
The firm’s total capital markets revenues for Q2 reached US$691.27 million, a 27.4% increase against Q2 2023. Investment banking net revenues hit US$803 million, a 57.5% increase year over year.
In fixed income, the firm recorded revenues of US$284.18 million in Q2 2024 versus $259.66 million in Q2 2023, a 9.6% increase. Debt underwriting in Q2 2024 stood at US$205.50 million, a year-over-year change of 128.6%.
Jefferies CEO Richard Handler, and president Brian Friedman, said: “Capital Markets net revenues of $691 million were modestly lower than the prior quarter and up 24.1% versus the same quarter last year, with strength in equities offsetting a moderation in fixed income after its strong first quarter.
“Overall, momentum continues to build across our investment banking business, as the market opportunity improves and the investment we have made in our platform translates to increased market share,” the pair added.
Morgan Stanley analysts suggested that trading showed “considerable strength” amid low volatility with investment banking revenues buoyed by an underwriting boost. “We are increasing our trading estimates in 2H24/2025. We view positive CEO commentary on 2H24/2025 … as a vote of confidence the capital markets rebound is building.”
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