July 25 (Reuters) - Piper Jaffray Companies’ quarterly profit fell, hurt by continued weakness in its Asia business and the company said it will exit its Hong Kong operations by September 30.
The company expects to realize cash proceeds of between $13 million and $18 million from the exit, which is likely to occur through a shut down or sale of the operation, the investment bank said in a statement.
Reuters had reported earlier this year that Piper Jaffray, which expanded its presence in Asia by buying Hong Kong-based investment bank, Goldbond Capital Holdings Ltd in 2007, was looking to offload its Asian business.
Minneapolis-based Piper Jaffray’s net income fell to $6.9 million, or 37 cents per share, for the second quarter, down from the $10.7 million, or 55 cents per share, a year earlier.
Net revenue for the quarter fell almost 20 percent to $106.4 million, hurt by lower investment banking revenues, which fell by a fourth from year-earlier levels.
Piper Jaffray’s shares closed at $19.56 on Tuesday on the New York Stock Exchange. (Reporting by Aman Shah in Bangalore; Editing by Supriya Kurane)