Jefferies Saw Significant Drop in Revenues and Income in Q2 FY22

The investment bank and financial services firm Jefferies Financial Group has published its financial results for the second quarter of the 2022 financial year ended May 31, 2022. The company saw declines in quarterly revenues and net income.

During the quarter, the American investment bank and financial services company posted net income of $114 million. For the same quarter last year, it reported a net income of $352 million. The diluted earnings per common share attributable to common shareholders touched $0.45, while this number was $1.3 a year ago.

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For the three months, Jefferies reported net revenues of $1.36 billion, down 30% over the prior year second quarter's $1.95 billion. In addition, Jefferies recorded a pre-tax income of $166 million, down 65% over the prior year comparable quarter.

For the six-month period that ended May 31, 2022, Jefferies's net income attributable to common shareholders touched $441 million, or $1.70 per diluted share.

Richard Handler, CEO, and Brian Friedman, President said:"Our second quarter results are reasonable in the face of an extremely challenging capital markets environment, with some markets being all but shut to new issues. We achieved Investment Banking and Capital Markets and Asset Management net revenues of over $1.1 billion despite the limited new issue market, as well as some unrealized markdowns in our mortgage inventory and leveraged finance commitments. Similarly, we incurred increased expenses for conferences, travel and other marketing, which will primarily benefit future periods, as well as our $14 million charitable contributions to support Ukraine."