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US investment bank Jeffries reported lower revenues in the 2025 launch than expected. This is the latest indication that the much-anticipated surge in deals under Donald Trump’s new administration has not come to fruition.
Jeffries said Wednesday that revenues from February 28 to February 28 fell 8% from the previous year to $1.6 billion, with visible Alpha polls missing $1.9 billion forecasts. Net income of $128 million was also shy about its $213 million forecast.
The unfortunate results are not only partly attributable to a decline in the return on investment in its asset management division, but also revenues from contract consultation work and delays in estimates due to stock underwriting.
Jefferies’ investment bank revenue fell 4% to $710 million.
This decline underscores how Wall Street’s hopes that Trump would unleash the “animal spirit” were shattered in the early months of his presidency. Dealmakers have condemned the economic uncertainty from the US policy of aggressive trade tariffs to reduce government spending and Elon Musk’s initiative.
The antitrust environment, which investment bankers criticised for being overly strict under former president Joe Biden, was also less challenging than expected under Trump.
Jeffries’ return rate, which generated the largest share of global investment bank revenue in 2024, provides broader industry health insights. Wall Street giants Goldman Sachs, JPMorgan Chase and Morgan Stanley disclosed quarterly figures in April.
Jeffreys’ president, Brian Friedman, told the Financial Times that there are a number of companies still considering publishing, selling or buying them. The question was whether uncertainty prevents the period during which these transactions did not occur.
“It’s very quick,” he said. “We’ve seen some improvement these days. It’s not uncommon for business leaders and markets to go through adjustments when adjustments are needed. This is a period of adjustments.”
Friedman added: “When people observe longer patterns of statements and behavior, they can at least form a preliminary perspective on possible directions and influences, which is why they have a little more confidence and visibility than they probably had a few weeks ago.”
Investment bankers suffered from a dramatic east feast on hunger swings from 2021 to 2022, and the Federal Reserve decision to quickly raise transactions in the US, the world’s largest investment banking market, has placed a rapid emphasis on trading in the US.
