Jefferies Financial reports US$158m first half earnings

New York-listed Jefferies Financial Group reported net income of US$158 million, or US$0.53 per diluted share for the first half ended May 31.

Net revenues were US$2.20 billion.

The board declared a quarterly cash dividend of US$0.15 per share payable on August 28.

The board also increased the stock buyback authorization by US$177 million to a total of US$250 million.

Jefferies Financial has repurchased 24.8 million shares for US$492 million, or an average price of US$19.85 per share.

Chief Executive Rich Handler, and President Brian Friedman, said the group” endured a surreal environment unlike anything we could ever have imagined,'' from the start if the second fiscal quarter on March 1 and for the duration of the second quarter.

The group reported record pre-tax income of US$408 million, record net earnings of US$300 million and return on tangible equity of 14.1 percent.

Investment banking net revenues were US$894 million, including record six months advisory net revenues of US$525 million.

Jefferies Financial said it booked record combined six months capital markets net revenues of US$1.22 billion, including record equities net revenues of US$483 million and record fixed income net revenues of US$741 million.

Asset Management revenues (before allocated net interest) was US$51 million.

Merchant banking reported a pre-tax loss of US$128 million, due to positive contributions from Vitesse, Idaho Timber and FXCM, and a gain of about US$60 million from effective short-term hedges against mark-to-market and fair value decreases, more than offset by a US$44 million non-cash charge to write-down our investment in We, US$45 million in non-cash charges to mark-to-market investments in public companies, US$68 million in non-cash write-downs related to real estate investments at HomeFed, and a US$33 million non-cash charge to write-down investment in JETX

For the three months ended May, Jefferies Financial reported net income of US$45 million, or US$0.16 per diluted share.

The group reported record quarterly combined capital markets net revenues of US$730 million; equities net revenues of US$237 million and record fixed income net revenues of US$493 million.

Investment banking net revenues were US$316 million, including advisory net revenues of US$182 million.

Asset management revenues (before allocated net interest) were US$19 million.