Lazard posts a lift in profits but its share price still drops
INVESTMENT bank Lazard, facing questions about succession after the death of chief executive Bruce Wasserstein, reported higher-than-expected quarterly profit yesterday on strong restructuring revenue from a wave of bankruptcies.
The restructuring unit produced record quarterly revenue of $119.1m, up from $23.9m a year ago, and is likely to continue its strong performance, interim chief executive Steven Golub said.
“As we look at restructuring going forward, we believe defaults will remain at high levels and will be at a more global level,” Golub said. “We expect our restructuring business will continue to be very active.”
Lazard posted net profits of $37.4m, for the third quarter, compared with a year-earlier net loss of $77m.
Lazard also posted improved results in asset management, where revenue rose 20 per cent to $157.3m.
Despite this the group’s shares fell four per cent to $37.15.
Pali International analyst Doug Sipkin said Lazard shares may be down due to investor concerns about global equity markets, which drive Lazard’s asset management business.