Key facts
- Lazard's second-quarter net income fell 91% to $5 million ($0.03 per share) from $55 million ($0.52 per share) a year ago.
- The company's financial advisory revenue decreased by 9% to $450 million.
- Asset management revenue increased by 20% to $351 million, with record assets under management.
- An elevated tax rate of $24 million impacted the quarter's earnings.
Lazard reported a significant 91% drop in second-quarter profit, attributed to an elevated tax rate and volatility in its financial advisory business. Net income fell to $5 million, or 3 cents per share, compared to $55 million, or 52 cents per share, in the same period last year. The company's CFO stated that the higher tax rate was not indicative of the full-year rate.
Revenues from the financial advisory segment declined by 9% to $450 million, reflecting delays in transactions due to market volatility. However, the asset management division showed strength, with revenue climbing 20% to $351 million and achieving record assets under management, which stood at $285 billion at the end of the quarter. This growth in asset management was partly driven by volatile global markets influenced by geopolitical tensions, shifting interest rate expectations, and AI-driven changes, which encouraged clients to reposition portfolios.
Shares of Lazard were down nearly 7% in premarket trading following the announcement.