MINNEAPOLIS (AP) — Investment bank Piper Jaffray Cos.’s first-quarter net income dropped 56 percent, mostly because of a hefty income tax expense.

The bank said Wednesday that its net income fell to $2.5 million, or 15 cents per share, from $5.7 million, or 38 cents per share, in the same period last year.

Removing 18 cents per share related to an income tax expense for writing off the value of deferred tax assets, earnings were 33 cents per share.

Analysts expected earnings of 32 cents per share, according to a FactSet survey.

Revenue for the three months ended March 31 declined 6 percent to $117.7 million from $124.8 million, but beat Wall Street’s estimate of $111.1 million.

“Stronger fixed income sales and trading and equity financing revenues, and solid asset management and public finance results drove the improved performance,” Chairman and CEO Andrew Duff said in a statement.

Fixed-income financing revenue surged 53 percent in the quarter.

Shares of Piper Jaffray, based in Minneapolis, slipped $1.08, or 4.3 percent, to $24.33 in afternoon trading. The stock has traded between $16.72 and $38.62 in the past year.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)


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