Numis reports weaker quarter amid challenging market

Numis described a challenging market backdrop across the investment banking industry in an update on Wednesday.

The company said its third-quarter total revenue fell below the first half run-rate due to deteriorating market conditions, impacting capital markets revenues in particular.

Despite facing headwinds from challenging financing markets, Numis said it managed to maintain strong revenues from its mergers and acquisitions (M&A) division.

However, cyclically low deal volumes affected its capital markets revenues.

The firm said it expected market conditions to remain difficult throughout the remainder of the fiscal year 2023.

“We expect macro-economic concerns to persist and restrict deal volumes across all investment banking products in the final quarter of the 2023 financial year, however our balance sheet position remains strong with both liquidity and capital positions providing a stable foundation to the business,” Numis said in its statement.

“We remain focused on growing the corporate client base, engaging with all our clients across the business, and building the pipeline to ensure we are well positioned for further growth when market conditions improve, and deal volumes recover.

“Following the receipt of shareholder approval, the acquisition of Numis by Deutsche Bank remains subject to various regulatory approvals and is expected to complete during the final quarter of this calendar year.”

At 1002 BST, shares in Numis Corporation were up 0.15% at 333p.

Reporting by Josh White for Sharecast.com.