Jefferies' profit boosted by strong investment banking revenue

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UPDATE 3-Jefferies' profit boosted by strong investment banking revenue

* 2nd-qtr investment banking revenue up 39 pct
    * Equities, fixed income revenue slips
    * Total net revenue up 8.3 pct

 (Adds Breakingviews link, Leucadia share price)
    June 20 (Reuters) - U.S. investment bank Jefferies Group LLC
reported a 29.4 percent increase in quarterly profit on Tuesday,
boosted by higher fees from advising on mergers and acquisitions
and underwriting debt and equity offerings.
    Revenue from its investment banking business, which includes
underwriting and advisory services, jumped 39 percent to $351.9
million in the second quarter ended May 31.
    New York-based Jefferies, a unit of Leucadia National Corp
<LUK.N>, traditionally kicks off the earnings reporting season
for investment banks, and its results are viewed as an indicator
of how big Wall Street banks are performing.
    Jefferies' total equities and fixed income revenue dipped
6.9 percent to $430.1 million, as revenue from fixed-income
trading fell by more than a third amid lesser market volatility
throughout much of the quarter.
    Strong trading revenue had boosted profits at large U.S.
banks in recent quarters even amid low interest rates as
investors changed their positions around major economic events
such as Britain's vote to leave the European Union and the U.S.
presidential election.
    But banks including JPMorgan Chase & Co <JPM.N> and Bank of
America Corp <BAC.N> have already warned that trading revenue in
the second quarter of 2017 would be lower than year-ago levels,
hurt by lesser volatility and weaker client activity.
    Net income attributable to Jefferies Group rose to $69.8
million from $53.9 million a year earlier. [nBw2tWp3fa]
    Net revenue climbed 8.3 percent to $779.3 million.
    Shares of Leucadia were down 2.8 percent at $25.49 in midday
trading on Tuesday.

BREAKINGVIEWS-Jefferies plods in Morgan Stanley's footsteps
 (Reporting by Sweta Singh in Bengaluru; Editing by Sai Sachin
 ((sweta.singh@thomsonreuters.com; within U.S. +1 646 223 8780,
outside U.S +91 80 6749 6125; Reuters Messaging: Reuters
Messaging: sweta.singh.thomsonreuters.com@reuters.net))


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