Jefferies Group, the investment banking unit of Leucadia National, reported a sharp increase in quarterly profit on Tuesday, driven by strong revenue in its equities and fixed-income securities trading business. Net earnings attributable to Jefferies jumped to $87.18 million in the fourth quarter ended Nov. 30 from $19.96 million a year earlier, when investors were scared off by uncertainty over U.S. interest rates, a slowdown in China and a sharp drop in oil prices. Equities and fixed-income revenue more than doubled to $325.38 million as trading surrounding the U.S. presidential election added to the market volatility sparked by Britain's Brexit vote. Jefferies' investment banking revenue rose 11.3 percent to $415.07 million in the quarter, boosted by higher fees from advising on mergers and acquisitions. New York-based Jefferies traditionally kicks off the reporting season for investment banks and is often viewed as an indicator of the performance of bigger Wall Street banks.
Jeffries Group, the investment banking unit of Leucadia National, reported net earnings of $87.18m in Q4 2016, up from $19.96m year on year. Investment was low last year because investors were scared off by uncertainty over US interest rates, the Chinese slowdown, and a sharp drop in oil prices. The firm said it expects to earn $1.5bn this year, down from $2.4bn, but still above its target for 2016. Jeffries is traditionally the first bank to report profits, and is viewed as a bellwether for the industry.