Investment banks, financial exchanges outperform YOY in Q3

Third-quarter results for investment banks and broker/dealers reporting through Nov. 1 showed mixed results, with most companies reporting year-over-year improvements.

Among the investment banks, brokers and capital markets companies, Houlihan Lokey Inc., Raymond James Financial Inc., Evercore Inc., Moelis & Co., Charles Schwab Corp., Morgan Stanley and Jefferies Financial Group Inc. reported quarterly and yearly gains for the quarter ended Sept. 30.

Piper Sandler Cos., Cowen Inc., Stifel Financial Corp. and Goldman Sachs Group Inc. also saw year-over-year increases, but failed to improve from their second-quarter EPS.

Similarly, most financial exchanges recorded strong year-over-year improvements, but only Cboe Global Markets Inc. and CME Group Inc. were able to post quarterly improvements.

MarketAxess Holdings Inc. was the only financial exchange to record both quarterly and yearly decreases, reporting EPS of $1.52 for the most recent quarter, compared to EPS of $1.77 for the second quarter and $1.78 for the year-ago period. "Market volumes have been negatively impacted by the current low levels of bond yields, credit spreads and volatility," said Chairman and CEO Richard McVey during the firm's third-quarter earnings call.

Investment and business development firms Hercules Capital Inc. and Saratoga Investment Corp. both saw a decrease in results on a quarterly and yearly basis.

Hercules Capital posted an EPS of 20 cents for the most recent quarter, down from 65 cents in the previous period and 38 cents in the year-ago quarter. Similarly, Saratoga Investment reported EPS of 71 cents, compared to EPS of $1.88 in the previous quarter and $1.95 in the year-ago period.