Lazard beats forecasts with strong quarter
Investment bank Lazard’s quarterly earnings soared a better-than-expected 58 per cent, helped by strong asset management results.
The New York-based firm said its key financial advisory business was growing, even as a sluggish mergers and acquisitions market and concerns about European economics have plagued competitors and weighed on results.
Lazards second-quarter profits were $44.57m (£28.6m), up from $28.19m a year ago.
The bank’s asset management division performed particularly well, with operating revenue rising 42 per cent to $187.2m. Management fees jumped 56 per cent to $167m, and assets under management were $123.5bn, up 26 per cent.
Lazard chief financial officer Michael Castellano said the firm has made a commitment to turn the asset management business around, and it is paying off.
He said: “While the markets are correcting, we are not seeing a flight of assets. Institutional clients are still hanging in there.”
Key clients are also sticking with Lazard’s financial advisory business. Second-quarter M&A and strategic advisory revenue was $145.9m, up eight per cent.