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Aug 31, 2023
Jefferies Q3 2023 Earnings Report
Jefferies reported Q3 2023 financial results, showing net earnings attributable to common shareholders of $51 million and net revenues of $1.18 billion.
Key Takeaways
Jefferies Financial Group reported Q3 2023 results with net revenues of $1.18 billion and net earnings attributable to common shareholders of $51 million, or $0.22 per diluted share. The company saw an improvement in investment banking revenues, offset by a decline in asset management revenues. They are optimistic about investment banking momentum and their strategic alliance with SMBC.
Net earnings attributable to common shareholders were $51 million, or $0.22 per basic and diluted common share.
Net revenues reached $1.18 billion, with $645 million from Investment Banking and $524 million from Capital Markets.
Investment Banking net revenues increased by 28% compared to the previous quarter.
The company has a $250 million authorization for future share repurchases.
Jefferies
Jefferies
Jefferies Revenue by Segment
Revenue by Segment
Advisory Revenue
CapyFin.comEquity Underwriting Revenue
CapyFin.comDebt Underwriting Revenue
CapyFin.comTotal Capital Markets Revenue
CapyFin.com Forward Guidance
Jefferies is optimistic about the market environment and expects momentum in investment banking to continue. They anticipate a more normal capital formation environment in 2024, subject to unforeseen surprises.
Positive Outlook
- Improving market environment
- Momentum in investment banking expected to continue
- Strategic alliance with SMBC showing early success
- Significant increase in Investment Banking Managing Directors
- Strong capital base and solid global brand
Challenges Ahead
- Challenging environment in investment banking in 2023
- New issue market shut or subdued until recently
- Asset Management net revenues significantly lower
- Normalized seasonal slowness in capital markets
- Meaningful pre-tax loss from legacy merchant banking
Revenue & Expenses
Visualization of income flow from segment revenue to net income