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Jefferies profits disappoint
JEFFERIES Group, a mid-sized US investment bank, posted a bigger-than-expected drop in quarterly earnings as rising costs outpaced a revenue increase.
Profit fell to $80.6m (£49.6m), or 36 cents per share, in the second quarter ended 31 May, from $83.8m, or 41 cents per share, a year earlier. Analysts on average had expected earnings of 39 cents per share.
Net revenue rose 8.3 per cent to $727.2m from $665.5m.
Jefferies has been spending aggressively to build up its business as new regulations make investment banking more costly for its bigger rivals.
The bank added 140 employees during the quarter, resulting in a 4.5 per cent increase in staffing from the first quarter of 2011.