Of Special Interest
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- Newslink Trends-The Global Strategic Perspective
- Juniper Research says digital wallet users to exceed 4.4 billion by 2025, as mobile drives digital payments’ revolution
- Criminals exploit COVID-19 pandemic with rise in scams targeting victims online
- Equifax says Open Banking proving pivotal to pandemic lending
- Consumer confidence in banks, credit card providers and investments remain stable as demand supercharges digital finance says Toluna research
- Mintos says Europeans are starting to embrace investing
- US banks see IT modernisation as a way to improve customer experience
- Risk mitigation in global trade depends on digitisation-Andrew Raymond, CEO, Bolero International comments
- Juniper Research new study says the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020
- CMA issues fifth publication over 3 years of the service quality league table of personal and business current account providers
- Barclays says scammers take advantage of COVID-19, cashing in on nations’ uncertainty
- S&P Global report says financial market infrastructure sector's earnings likely to cool off In second half
- Global banking market capitalisation slumps by over 30% amid pandemic says Buyshares research
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
- Banks can save the world from climate change, says former UN climate chief
- Research by NatWest reveals gender divide over attitudes to saving
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- 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
7th February 2012
Lazard full year net down 36%
Lazard reported full year net income of $178.6m (€138.4m £115.4m ¥13,778bn Y1,131.4m) down 36%. Lazard is historically regarded as a financial advisory house and still gains the majority of its income from this sector - which was understandably down in 2011. The bank had done well in the immediate aftermath of the banking crisis through restructuring advisory including a few lucrative government contracts. Asset Management has at the same time being growing with a 14% increase during 2011 which when combined with a jump in other income helped compensate for the fall in advisory income to leave overall income down 5%.
Expenses appear worrying at first sight. The bank argues that discretionary bonuses fell by 20% and to GAAP standards awarded compensation & benefits remains at the same ratio to overall income as the previous year. The increase in general expenses is blamed on IT spend, recruitment and the fall in the dollar.
Income Statement - Full Year 2011 2010 Change
$000s $000s %
Financial Advisory
M&A and strategic advisory 700,539 714,059 (2%)
Capital markets & other advisory 93,888 112,616 (17%)
Strategic advisory 794,427 826,675 (4%)
Restructuring 197,743 293,875 (33%)
____________________________
Total 992,170 1,120,550 (11%)
Asset Management
Management fees 818,038 715,885 14%
Incentive fees 26,245 86,298 (70%)
Other revenue 38,494 32,469 19%
___________________________
Total 882,777 834,652 6%
Corporate 8,922 23,321 (62%)
Operating revenue 1,883,869 1,978,523 (5%)
Compensation & benefits expense 1,168,229 1,166,210 0%
Non-compensation expense 399,677 368,209 9%
_____________________________
Earnings from operations 315,963 444,104 (29%)
Noncontrolling interests 10,948 11,174 (2%)
Amortization of intangibles (11,915) (7,867) (26%)
Interest expense (86,200) (89,432) (4%)
____________________________
Pre-tax income 228,796 357,979 (36%)
Provision for income taxes 46,504 70,025 (34%)
Noncontrolling interests 3,678 6,880 (47%)
____________________________
Net income 178,614 281,074 (36%)