Updated version 1 - Jefferies exceeds earnings expectations, driven by surging trading volumes and strong stock trading performance

Added performance forecast and stock price information

Reuters, September 28 - Jefferies Financial Group (JEF.N) announced on Monday that its third-quarter profit exceeded market expectations, thanks to higher fees from advisory and equity underwriting businesses, as well as record earnings from equity trading.

Wall Street closely watches the company's results ahead of major U.S. banks’ earnings announcements in the coming weeks, seeking an early insight into investment banking trends for the quarter.

Here are some additional details:

• As corporate boards, undeterred by market volatility, take advantage of a more relaxed regulatory environment to expand their businesses, global M&A deal value has surpassed $4 trillion so far this year.

• Jefferies’ investment banking revenue jumped 17% to $1.33 billion, mainly due to its advisory business hitting a quarterly record high.

• The New York-based investment bank’s equity underwriting revenue soared 69% this quarter, benefiting from increased market share and higher deal activity across industries.

• “Given the breadth and strength of our current backlog and new business, we are very optimistic about the momentum for the remainder of 2026 and heading into 2027,” said CEO Richard Handler and President Brian Friedman.

• Jefferies’ stock price fell about 3% in after-hours trading. As of the previous trading session's close, the stock had declined about 24% so far this year.

• For the three months ended August 31, profit attributable to Jefferies shareholders was $260.6 million, or $1.08 per share. According to estimates compiled by London Stock Exchange Group (LSEG), Wall Street previously expected earnings of $1 per share.

• Capital markets revenue (which includes trading) jumped 11% to $802 million, mainly due to record equity trading performance.

• Asset management fees and investment return income fell to $34 million from $84 million a year earlier, reflecting weaker performance across several fund strategies.

• According to Dealogic data, Jefferies has climbed from eighth place to sixth in the global investment banking revenue ranking so far this year, compared to the same period last year.

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