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U.S. investment bank Jefferies Financial Group (JEF) has reported mixed fourth-quarter financial results to kick-off earnings season on Wall Street.
The New York-based bank reported that its profit rose 212% to $205.7 million U.S. in Q4 from $65.6 million a year earlier, while its revenue increased 63% to $1.96 billion U.S.
Jefferies said that it is benefitting from a resumption of deals on Wall Street.
However, despite the year-over-year growth, earnings per share (EPS) for the quarter came in at $0.91 U.S., which was below consensus estimates of $0.97 U.S. a share.
Jefferies revenue surpassed the $1.80 billion U.S. that was forecast among analysts.
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 U.S. on its advisory work for clients.
Jefferies said that its investment banking revenue for all of 2024 totaled $3.4 billion U.S., the second-highest annual figure ever for the firm.
Revenue of $2.8 billion U.S. from deals such as mergers and acquisitions (M&A) and initial public offerings (IPOs) in 2024 was up 24% from a year ago.
With markets strong and interest rates declining, many analysts anticipate a surge in deals on Wall Street in the coming year.
Jefferies also announced that it is increasing its quarterly dividend by 14% to $0.40 U.S. per share.
The stock of Jefferies Financial Group has risen 101% in the last 12 months to trade at $80.13 U.S. per share.
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