Piper Jaffray Turns A Profit In 3Q

MINNEAPOLIS (AP) — Investment bank Piper Jaffray Cos. said Wednesday it posted a third-quarter profit, reversing a year-ago loss, as revenue in its institutional brokerage unit more than doubled.

Results last year for many investment banks were hurt amid the credit crisis and volatility in the financial markets.

For the period ended Sept. 30, Piper Jaffray recorded a profit of $9.3 million, or 47 cents per share. A year ago, the company posted a loss of $28.2 million, or $1.79 per share, because of a decline in institutional brokerage revenue and an after-tax loss of $13.4 million, or 85 cents per share, for a tender option bond program at the company.

Net revenue jumped 63 percent to $119.7 million from $73.5 million.

According to a poll by Thomson Reuters, the average analyst estimate was a 40-cent profit on revenue of $108.7 million.

Non-interest expenses declined 13 percent to $104.1 million from $120.2 million.

Revenue from the firm's institutional brokerage jumped to $59.6 million from $12.8 million. That's a reversal from a year ago, when revenue in the unit dropped 59 percent.

Shares of the company declined 10 cents to $54.78 in afternoon trading.