New York investment bank Jefferies Financial Group (JEF) has reported a 200% surge in its fourth-quarter profit as deal making heats up on Wall Street.
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Jefferies reported that its profit rose 212% to $205.7 million in Q4 from $65.6 million a year earlier, while its revenue increased 63% to $1.96 billion. Despite the growth, earnings per share (EPS) for the quarter came in at $0.91, which was below the consensus estimate of analysts that called for earnings of $0.97 a share.
However, Jefferies revenue managed to surpassed the $1.80 billion that was forecast on Wall Street. In its earnings statement, the bank said that its Q4 results were largely driven by its investment banking business, with record revenue of $596.7 million earned on its deal work for clients.
Record Deal Revenue
Jefferies said that its investment banking revenue for all of 2024 totaled $3.4 billion, the second-highest annual figure ever for the firm. Revenue of $2.8 billion from capital markets and deals such as mergers and acquisitions (M&A) and initial public offerings (IPOs) in 2024 was up 24% from a year ago.
Jefferies CEO Richard Handler said in his annual letter to shareholders that the investment bank “begins 2025 in the best position ever in our firm’s sixty-two-year history.” Jefferies also announced that it is increasing its quarterly dividend by 14% to $0.40 per share.
JEF stock has risen 106% in the past 12 months.
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