MINNEAPOLIS (AP) -- Investment bank Piper Jaffray Cos. said Wednesday that it turned a profit in the third quarter on stronger results from both its capital markets and asset management businesses.
Piper Jaffray said revenue for its capital markets business climbed 42 percent on increased equity financing and fixed-income financing revenue. Revenue from its asset management business also improved as the company received higher management fees and bigger gains on firm investments. A year ago the company took a loss as the slowdown in the economic recovery and volatile markets hurt its business.
Net income was $19.7 million, or $1.11 per share. In the third quarter of 2011 Piper Jaffray lost $3.6 million, or 23 cents per share. Piper Jaffray shut down its Hong Kong capital markets business during the quarter and reported a gain of $6.8 million, or 38 cents per share, from discontinued operations.
Net revenue rose 39 percent, to $133 million from $95.9 million.
The company reported $115.2 million in capital markets revenue and $17.7 million in asset management revenue.
Analysts expected net income of 30 cents per share and revenue of $105.6 million, according to FactSet.
Piper Jaffray shares rose $1.93, or 7.3 percent, to close at $28.46.
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