Jefferies Monetary Group (JEF) delivered report quarterly earnings outcomes on Wednesday after the closing bell, with elevated market share throughout its traces of enterprise.
For the primary quarter ended Feb. 28, Jefferies — thought of a bellwether for Wall Avenue banks — posted complete revenues of $2.13 billion, up 82% from the $1.17 billion reported a yr in the past, a report at the moment. The quarter’s web earnings got here in at $494 million, up 188% from the $171 million reported in the course of the first quarter of 2020. The bulge-bracket banks will report outcomes subsequent month.
In keeping with the discharge, Jefferies’ annualized return on tangible fairness hit 43.5% versus 16.1% within the year-ago interval.
Jefferies repurchased 5 million shares for $128 million in the course of the quarter at a mean value of $25.51 per share. Within the final three years, Jefferies repurchased 123 million shares for a complete of $2.6 billion, or a mean value of $21.04 per share.
“We expressed a really particular plan these previous three years that included simplifying our father or mother firm construction, aggressively shopping for in our shares at engaging costs, and reinvesting closely into our core funding banking, buying and selling, analysis, and asset administration companies. The aim has been to succeed in important mass in every enterprise by product, service, and geography and handle the enterprise to attain an appropriate ROE for our shareholders. We’re very happy with our group for executing this plan extremely properly,” CEO Wealthy Handler wrote in an electronic mail to Yahoo Finance.
Handler, who’s served as CEO since January 2001, making him the longest-tenured funding financial institution chief, vowed there can be “no vanity” on the firm due to the report outcomes.
“We’ve got to show ourselves day by day with our purchasers, stay targeted on danger and prices, and proceed to put money into our core companies. We’re very excited in regards to the potential for added enchancment throughout our firm,” he added.
Funding banking revenues, pushed by power in fairness underwriting, hit a report of $1.03 billion, a rise of 79% from final yr. Capital markets additionally noticed income hit a report, leaping 81% to $894 million, led by equities hitting $531 million and stuck earnings $363 million. Asset administration’s income surged 454% from final yr’s $37 million to a brand new quarterly report of $180 million.
Jefferies had $8.1 billion of money and liquid collateral on the finish of the quarter, accounting for 16% of its stability sheet.
A hybrid world
Elsewhere within the commentary, Handler credited Jefferies’ practically 4,000 workers for the agency’s report quarter whereas most are nonetheless working from residence.
“I am in awe of our group at Jefferies as they’ve handled each problem and adversity these previous twelve months with unbelievable grace and tenacity. Everyone seems to be exhausted, however they’ve all rallied collectively for the good thing about our purchasers,” the CEO wrote.
He additionally pointed to worker initiatives in the course of the distant work surroundings, together with CEO interview sequence from outdoors the agency, talks on range and inclusion, lessons for skilled growth, psychological well being, bodily well being, and train.
“None of this takes away from the truth that our individuals, like these in each different firm, all really feel like day by day is a wrestle, and we can not wait till there’s some semblance of the world we used to know and love,” Handler added.
Handler, who seems ahead to resuming journey and in-person consumer and worker conferences, offered some perception into what the way forward for work may seem like at Jefferies, together with renovated workplace house and extra flexibility.
“Our persons are wanting to return to our places of work. We do not have to set an arbitrary date and persuade anybody that there’s a particular day. We are going to watch the rollout of vaccines and are optimistic that the higher climate and passage of time will result in very constructive developments. Within the meantime, we’ve been renovating our places of work to permit for extra flexibility for the hybrid world we imagine would be the future. We are going to monitor all, regulate in real-time as wanted, and proceed to be clear with all our individuals to permit them each to plan in addition to have peace of thoughts. One dimension won’t match all,” Handler wrote.
Julia La Roche is a correspondent for Yahoo Finance. Comply with her on Twitter.