Jefferies reports $30 million loss tied to First Brands as profit falls

Jefferies' fourth-quarter net earnings fell 7.2% to $191 million, and the firm recorded a $30 million pre-tax loss linked to First Brands through its Point Bonita fund.

Jefferies Financial Group reported a quarterly profit decline after recognizing a $30 million pre-tax loss tied to the collapse of auto-parts supplier First Brands Group. Net earnings for the fiscal fourth quarter fell 7.2% from a year earlier to $191 million. The bank holds a 6% interest in a fund called Point Bonita, which had more than $700 million invested in receivables owed by First Brands customers. Company leaders described the situation as a serious disappointment and said they are adjusting and improving controls. Key details: - Jefferies took a $30 million pre-tax loss tied to First Brands that affected its asset-management operation. - Fourth-quarter net earnings declined 7.2% year over year to $191 million. - Overall revenue rose 5.7% to a fourth-quarter record of $2.07 billion, with investment-banking revenue up 20% to $1.19 billion and advisory revenue at its second-highest level on record. - Executives said they are improving the firm's control regime and see market momentum carrying into 2026. Summary: The loss connected to First Brands reduced Jefferies' quarterly profit while other businesses, notably investment banking and trading, supported a record quarterly revenue figure. Undetermined at this time.