Of Special Interest
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
29th July 2011
Lazard profitable significant growth
Lazard reported net profit of $62.0m (€42.9m £37.9m ¥4,827m Y399.5bn) for Q2 and $117.0m (€81.0m £71.5m ¥9,108m Y753.9m) for the half year up 39% on the year ago quarter and up from $11,038m for the first half of 2010. Under Lazard's preferred method of calculating profit as if all of Lazard's operations are within the one listed company - the 'Fully Exchanged and Adjusted Method', the profits were $65.8m and $124.3m, UP 24% and 9% on last year respectively.
Lazard has the advantage of having never been a major player within FICC and therefore has not shown the consequences of the major slowdown in this area that other investment banks have. Very impressive is the 19% operating revenue gain from M&A and Strategic Advisory, Capital Markets and Other Advisory in a very quiet market. The bank may be benefiting from its specialism, its clean reputation, and clients knowing there is less likelihood of conflicts of interest occurring.
Asset Management operating revenue increased 27% to $237.7m and increased 24% to $461.7, both records. The unit had AUM of $161.6bn, an increase of 31% on a year ago.
"Our strong first-half performance underscores the power of Lazard's advice-driven, intellectual capital model," said Kenneth M. Jacobs, Chairman and Chief Executive Officer of Lazard. "Companies, government bodies and investors continue to demand independent advice with a geographic perspective, deep understanding of capital structure, informed research, and knowledge of global economic conditions during this uneven economic recovery."
"Over the past year, we have invested strategically in both our Financial Advisory and Asset Management businesses through hires and initiatives to continue to grow the franchise and serve our clients worldwide," said Mr. Jacobs.
"Our simple business model of Financial Advisory and Asset Management is well positioned, as the need for independent strategic advice and superior investment solutions continues to increase," said Matthieu Bucaille, Chief Financial Officer of Lazard. "We remain focused on growing revenue, maintaining cost discipline, managing our capital and investing in our businesses for the future."