Jefferies Financial Group reports record Q3 revenue

On Thursday, Financial services provider Jefferies Financial Group reported its third-quarter financial results and results for the nine months ended August 31.

The Nasdaq listed firm recorded net revenues of $1.65 billion for Q3, 19% above its revenue numbers for Q3 2020, the company’s previous all-time quarterly high. Part of the reason for the jump in revenue was that Jefferies achieved a record nine months for investment banking net revenues, which came in at $1.18 billion, double that of the same period last year.

Revenue growth

Net income for the third quarter stood at $407 million, or $1.50 per share.

Jefferies Financial Group’s CEO Rich Handler, and company President Brian Friedman said:

We are humbled by and deeply grateful for the confidence and trust our clients have shown in us, not just this quarter, but over the years and decades we have worked to build the leading independent full-service global investment banking firm. Our results this quarter demonstrate that the relentless client focus of our amazing Jefferies team is the difference maker and our market position has reached a new level, particularly in Investment Banking.

For the nine months ended August 31, Jefferies posted another record of $5.4 billion in net revenues, a rise of 50% year-on-year. Net income also hit a record of $1.66 billion for the period, up 115% compared to 2020.

Net income attributable to common shareholders for the period was $1.34 billion, or $4.93 per diluted share.

Handler and Friedman continued: 

Net revenues in Investment Banking for the first nine months of the year were $3.25 billion and our backlog for the fourth quarter is at a new record level. In this most recent quarter, we completed more investment banking transactions (up 18% this quarter from Q3 2020), with more clients (up 19%), at a greater average value per transaction (up 48%) than ever before. To put this in perspective, our Investment Banking.

Looking ahead, Jefferies stated that it believes the global economy is still in a period of recovery and it expects to see continued activity in mergers and acquisitions, and capital markets.

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