Jefferies Profit Dips $30M Due to First Brands Collapse, Despite Strong Q4 Revenue

• Jefferies' quarterly profit fell 7.2% to $191 million, impacted by a $30 million pre-tax loss from First Brands Group's bankruptcy.
• The loss stemmed from Jefferies' 6% interest in Point Bonita, a fund with over $700 million invested in First Brands receivables.
• Despite the hit, overall revenue for the fiscal Q4 rose 5.7% to a record $2.07 billion, driven by strong investment banking.
• Investment banking revenue surged 20% to $1.19 billion, with advisory revenue up 6.2% and underwriting also increasing.
• Capital markets unit revenue grew 6.2%, with equities up 18%, offsetting a 14% decline in fixed-income trading.

Why It Matters: Jefferies' profit dropped due to First Brands' bankruptcy, but strong investment banking boosted overall revenue.